Short answer: For long-term savings, use a hardware wallet. For small daily spends, a software wallet is fine.

Hardware wallet — Pros

• Private keys offline (safer against malware)
• Physical confirmation for transactions
• Better for larger balances

Cons

• Costs money
• USB/Bluetooth needed; not as quick as a phone app

Software wallet — Pros

• Free and instant to set up
• Great for small, frequent payments

Cons

• Private keys on a connected device
• Higher risk if your phone/PC gets malware

Recommendation: keep long-term funds on Ledger/Trezor; keep small spending funds in a mobile wallet.

Crypto scams work because people are rushed, excited, or afraid.
The best defense is knowing the red flags.

Here are the 5 scams beginners fall for most:

1) “Support agent” asking for your seed phrase

No real company will ever ask for your 24 words.

If someone asks:

“Can you confirm your recovery phrase?”

It is 100% a scam.
Instantly block.

2) Fake wallet apps or fake websites

Scammers make lookalike websites like:

1. Write it by hand on the included cards; never type it into a computer/phone.
2. Make two copies and store them in separate safe locations.
3. Consider a metal backup (fire/water resistant) if your balance is larger.
4. Never take photos, never upload to cloud, and never share it with anyone.
5. Do a small test transaction first; confirm you can receive and send.

If anyone asks for your 24 words, it’s a scam.

Storing Bitcoin safely is not complicated. You just need to follow a few key principles:

• Your Bitcoin is controlled by whoever has your private keys
• Private keys are stored inside wallets
• The safest wallets are hardware wallets (offline, not connected to the internet)

1) Use a hardware wallet (not an exchange)

Leaving Bitcoin on an exchange (Binance, Coinbase, Kraken, etc) means:

• You do not control your keys
• Your funds depend on the company’s security and solvency

If you don’t control your private keys, you don’t really own your Bitcoin.

A seed phrase (also called a recovery phrase) is a list of 12–24 words that can recreate your entire crypto wallet.

Example: example seed phrase: cable gravity forest bridge taste idea …

Whoever has these words controls the wallet.

Why seed phrases exist

Your crypto wallet generates private keys.
Instead of backing up those long numbers directly, wallets convert them into human-readable words.

So:

• Your wallet = math
• Your backup = words

Why it’s extremely important

If you lose your seed phrase: