Key Insights

  • The security of a crypto wallet is just as important as its assets.

  • Newcomers often fall victim to wallet security pitfalls as they opt for convenience over security.

  • Some of the biggest tips include using unsecure wallets and ignoring backup options.

  • Others include falling victim to phishing scams and using public wifi to access one's wallet.


Crypto offers one of the most exciting opportunities for investing and sending money from person to person.

However, this powerful form of money comes with its fair share of risks.

Maintaining the security of your crypto funds is a whole new conversation on its own.

This is because it requires a solid understanding of how to use crypto wallets responsibly.

The tiniest mistakes can lead to irreversible losses. Knowing what to avoid is, therefore, crucial.

Here is a list of the top five crypto wallet mistakes to avoid, especially as an investor or trader in India.


1. Using Unsecured Wallets

This is arguably one of the biggest holes in crypto asset security out there.

Using a crypto wallet without the proper security features is a major recipe for disaster.

Unfortunately, this is one major mistake that beginners fall victim to.

Many newcomers to crypto opt for convenience over security—which is understandable, given their level of experience.

However, this often turns out to be a major mistake that costs investors dearly.

Before picking a crypto wallet, everyone should ensure that  it offers:


  • Two-factor authentication (2FA)

  • Biometric security options

  • Advanced encryption


If you care more about security, a hardware (or cold) wallet is highly recommended. This kind of wallet stores your crypto offline, making it significantly harder for online threats to cause damage.

If you don't like hardware or cold wallets, you can opt for trusted hot wallets like Binance Web3 or MetaMask.

2. Ignoring Backup and Recovery Options

Failing to back up your wallet can be a major problem, especially if your device gets damaged or stolen. 

Every wallet provides a seed phrase to its user on creation.

For some context, the seed phrase is a series of words that can be used to recover a crypto wallet at any time.

To avoid the problems that come from backup issues, here’s what to do:


  • Consider writing your seed phrase somewhere and storing it securely.

  • It sounds counterintuitive, but avoid digital backups. These include taking screenshots and uploading them to cloud storage.

  • If cloud storage is your preferred option, ensure your passwords are as secure as possible.

  • If you choose the "piece of paper" method, keep multiple copies in secure locations.

  • Keep in mind that losing your recovery phrase means losing access to your funds—forever.

3. Falling for Phishing Scams

Hackers are especially fond of phishing scams when it comes to stealing crypto.

These often involve fake websites, emails, and messages designed to trick victims into revealing their private keys.

To avoid falling victim:

  • Never click on strange links or open strange emails

  • Double-check website URLs when accessing your wallet.

  • Never share your private keys or recovery phrase with anyone, whosoever.

  • If your wallet offers anti-phishing features, consider enabling them.

  • Whenever something feels suspicious, trust your instincts and DYOR.

4. Overlooking Software Updates

When a wallet is outdated, it becomes more and more vulnerable to hacks. Wallet developers often update threat definitions via software updates, and taking the time to finish upgrades could be the way to go.

Here are a few things to keep in mind: 

  • Enable automatic updates for wallet apps.

  • Only download updates from official sources.

  • Keep your operating system and antivirus software updated.

  • Never ignore update notifications.

5. Using Public WiFi to Access Your Wallet

Finally, avoid public WiFi—especially when accessing your wallet.

Public WiFi networks in hospitals, airports, and other places often serve as goldmines for hackers, who can sometimes access their victims' devices remotely.

To avoid falling victim to the effects of this mistake:

  • Never use or even open your crypto wallet when connected to public wifi.

  • If you must connect to a public hotspot, use a VPN.

  • When it comes to wallet transactions, consider sticking to your mobile data.


In Summary

The crypto world is full of opportunities. However, security is just as important.

By avoiding these common mistakes, anyone can greatly reduce the risk of losing their hard-earned crypto.

Always stay vigilant, educate yourself, and use a reliable wallet. 

Remember that keeping your crypto safe in India (or anywhere else in the world) isn’t complicated—it just requires a little more attention.

Finally, stay safe and enjoy the journey!