// wallet security awareness

Your crypto is only as
secure as your
habits

Billions in crypto are lost every year — not to hacked blockchains, but to phishing, weak passwords, and exposed seed phrases. Learn how to actually protect what you own.

$6.1B
Lost to crypto scams in 2024
Source: Chainalysis 2024 Crypto Crime Report
78%
Of thefts traced to user error
Source: CipherTrace 2024 Report
4,200+
Phishing sites registered monthly
Source: PhishTank 2024 Data

How your wallet gets compromised

Understanding the attack surface is the first step toward closing it.

🎣

Phishing Attacks

Fake websites, emails, and DMs trick you into entering your seed phrase or connecting to a malicious contract. The #1 cause of crypto loss.

Critical
📋

Clipboard Hijacking

Malware silently replaces copied wallet addresses with attacker-controlled ones. You send funds to yourself — but they go nowhere.

High Risk
🔑

Exposed Seed Phrases

Writing your 12–24 word recovery phrase on paper and leaving it visible, or storing it digitally in an unencrypted file, gives anyone access.

Common

Malicious Smart Contracts

Signing a "free mint" or "approve" transaction can grant a contract unlimited access to your tokens. One click, total drain.

Critical
📱

Compromised Hot Wallets

Software wallets on internet-connected devices are vulnerable to malware, keyloggers, and browser extensions that harvest private keys.

High Risk
🕵️

Social Engineering

Scammers impersonate support staff on Telegram, Discord, or Twitter. They ask for your seed phrase "to help" — then drain everything.

Common

Know your wallet — and choose wisely

Not all wallets are equal. Pick the right one for how much you hold and how often you transact.

💻

Hot Wallet

Browser extension · Mobile app

Always connected to the internet. Convenient for daily use, but your private keys live on a device that can be compromised.

  • Free and instant to set up
  • Easy for frequent transactions
  • Good for small spending amounts
  • Private keys on internet-connected device
  • Vulnerable to malware and extensions
  • Never store large amounts here
🔗

Multi-Signature Wallet

Gnosis Safe · Argent

Requires multiple independent approvals before any transaction goes through. No single point of failure — ideal for teams or high-value holdings.

  • No single person can drain funds
  • Recovery possible if one key is lost
  • Excellent for organizations and families
  • More complex to set up
  • Transaction fees are higher
  • Requires coordination for sign-offs
Rule of thumb: Keep only what you plan to spend this week on a hot wallet. Everything else goes to a hardware wallet. If you hold more than $10,000, consider multi-sig.

How secure are your habits?

Answer 8 questions to find out where your vulnerabilities are.

0/8
SECURITY SCORE

How to spot a phishing site

Most attacks look real. Here's how to tell them apart.

https://uniswap-org[dot]com/swap — ⚠ LOOKS FAMILIAR BUT IS NOT

1. Check the domain character by character

Phishers register domains that look almost identical to the real thing. "uniswap-org.com" vs "uniswap.org" — the hyphen is easy to miss at a glance.

2. Watch for typosquatting

Attackers buy domains with slight misspellings: "metamask-wallet.com" instead of the real extension. Always check each letter.

✓ REAL https://app.uniswap.org
https://wallet.ethereum.org
✗ FAKE https://uniswap-org.com
https://ethwallet-secure.net

Bookmark official URLs

Bookmark the real site and always navigate from your bookmark — never click links in emails or DMs.

Check SSL certificates

Click the padlock. Phishing sites often have invalid or suspicious certificates. But note: having HTTPS doesn't guarantee safety.

Use a URL scanner

Tools like urlscan.io let you paste a link and see its reputation before visiting. When in doubt, scan first.

Enable hardware wallet confirmations

Always review transaction details on your device screen — phishing sites can't spoof your hardware wallet's display.

What is a seed phrase?

Your seed phrase is the human-readable backup of your private key. It is the only way to recover your wallet if your device is lost or destroyed.

abandon ability able about above absent absorb abstract absurd abuse access account

⚠ This is an EXAMPLE using the BIP39 standard word list. Your real seed phrase will be different. Never share it.

Why 12 or 24 words?

The BIP39 standard defines a list of 2,048 words. 12 words = 128 bits of entropy. 24 words = 256 bits. More words = exponentially harder to guess (2^256 combinations).

How is it generated?

Your wallet creates a random number using a cryptographically secure random number generator (CSPRNG), then maps that number to words from the standardized list. No one can predict your seed.

Why never store it digitally?

Photos, Notes apps, cloud storage — all can be accessed by malware, synced to compromised devices, or recovered by forensic tools. Paper in a safe is the only truly air-gapped backup.

What is a passphrase?

A BIP39 passphrase adds a second layer of protection. Even with your 12 words, an attacker cannot access your funds without the extra passphrase you choose. Think of it as a password for your seed phrase.

What to do if your wallet is compromised

Time matters. Move fast, but stay calm. Every second counts.

1

Disconnect immediately

Turn off Wi-Fi and cellular data on the affected device. Revoke all token approvals using a tool like revoke.cash or app.elk.tools before the attacker can act.

  • Go to revoke.cash and connect your wallet
  • Revoke unlimited approvals for any token
  • Set approval amounts to $0 or a minimal limit
2

Move remaining funds to a new wallet

Create a fresh wallet on a clean device. Transfer any remaining funds immediately. Do not reuse the compromised wallet — assume it is fully compromised.

  • Generate a new seed phrase on a clean, offline device
  • Send all remaining assets to the new wallet address
  • Do not transfer back to the old wallet
3

Secure your seed phrase

If you still have your original seed phrase, write it down on paper and store it somewhere safe. If it was exposed digitally, generate a completely new one.

  • Write the new seed on paper — never on a device
  • Store in a fireproof safe or safety deposit box
  • Consider adding a passphrase for extra protection
4

Scan your devices

The attack vector may still be active. Run antivirus scans, check for suspicious browser extensions, and review login activity on all accounts linked to your crypto.

  • Remove unknown browser extensions immediately
  • Run a full system malware scan
  • Change passwords on exchange and email accounts
  • Enable 2FA with an authenticator app (not SMS)
5

Report the incident

Report phishing domains, scam contracts, and social engineering attempts. This helps protect others and may aid investigations.

  • Report phishing URLs to phisherman.xyz or the platform where you found them
  • Flag scam addresses on Etherscan or block explorers
  • Report to local authorities if the amount is significant
⚠ Important: No one — not exchange support, not wallet providers, not "security agents" — will ever ask for your seed phrase. If someone asks, it is a scam. Report it immediately.

Security tools you should use

These are free, open-source, or industry-standard. No affiliation — just what works.

Revoke.cash

Token Approval Manager

View and revoke token spending approvals. Run this monthly and before any new dApp interaction. The #1 tool most users don't know about.

revoke.cash →

Scam Sniffer

Browser Extension

Chrome/Firefox extension that blocks known phishing sites and warns you about suspicious contracts in real time. Install it once, forget about it.

scamsniffer.com →

ETH Gas Tracker

Gas Fee Estimator

Check current gas prices before transacting. Timing matters — transactions during low-traffic periods cost significantly less.

ethgaswatch.info →

Etherscan Contract Verification

Source Code Checker

Before interacting with any contract, verify its source code on Etherscan. Look for functions like "approve", "transferFrom", and ownership renouncement.

etherscan.io →

LEDGER / TREZOR

Hardware Wallets

The two most established hardware wallet brands. Both support 100+ coins, offer open-source firmware, and have been operating safely since 2014–2015.

ledger.com → trezor.io →

GNOSIS SAFE

Multi-Sig Wallet

The most widely used multi-signature wallet on Ethereum. Requires multiple approvals for transactions. Free to deploy, battle-tested since 2018.

safe.global →

Major security incidents

History repeats. Learn from these failures so you don't become the next statistic.

2022 — Poly Network

$611M DeFi exploit

$611,000,000

A smart contract vulnerability in Poly Network's bridge allowed an attacker to drain funds. The hacker returned most funds after a bounty negotiation, but the incident exposed critical bridge security gaps.

Lesson: Cross-chain bridges are the weakest link. Never bridge more than you can afford to lose.
2022 — Ronin Bridge

$624M Axie Infinity heist

$624,000,000

Sky Mavis admitted that 5 of 9 multi-sig key holders were compromised by a sophisticated nation-state actor. The attacker used social engineering to obtain the keys — not a code bug.

Lesson: Multi-sig is only as strong as the weakest key holder. Physical security matters more than code.
2023 — Bybit

$1.5B exchange hack

$1,500,000,000

Private keys for cold storage wallets were compromised through a third-party vendor. Bybit covered all losses, but the incident showed how supply-chain attacks bypass even the best security.

Lesson: If you hold on an exchange, remember — "not your keys, not your crypto." Exchange security is not your security.
2024 — Hammurabi

$200M+ phishing campaign

$200,000,000+

The Hammurabi botnet used AI-generated phishing sites mimicking popular DeFi protocols. Over 70,000 wallets drained in a single coordinated campaign. Most victims clicked links from fake Discord servers.

Lesson: AI makes phishing indistinguishable from real sites. Verify every URL manually — never trust a link.

Your daily protection protocol

Run through these before every transaction. Make them muscle memory.

shielded-checker — bash — 80×24
$check_contract_source("0x7a...3f2")
>✓ Contract verified on Etherscan
$verify_url("https://app.uniswap.org/swap")
>✓ Domain matches official registry
$scan_clipboard_for_wallet()
>⚠ Clipboard contains wallet address — verify manually
$check_seed_phrase_storage()
>✗ Seed phrase stored in plaintext file — migrate immediately
$verify_hot_wallet_balance()
>⚠ >$1,000 on hot wallet — consider hardware wallet
$

3 steps to secure your wallet

Follow this sequence. Each step builds on the last — don't skip ahead.

Step 01

Write your seed phrase by hand

Never store your 12–24 word recovery phrase digitally. Write it on paper, store it in a fireproof safe, and never photograph it or save it in any cloud service.

Step 02

Move holdings to a hardware wallet

For any amount over $1,000, use a Ledger, Trezor, or similar cold wallet. Your private keys never touch an internet-connected device — making remote theft virtually impossible.

Step 03

Verify everything before signing

Check URLs character-by-character, verify contract sources on block explorers, and never approve unlimited token spend. Slow down — one second of caution prevents total loss.

What to do — and what never to do

These aren't suggestions. They're the difference between keeping your assets and losing them.

✓ DO
  • Use a hardware wallet for long-term holdings
  • Write your seed phrase on paper — never digitally
  • Enable 2FA on all exchange accounts
  • Verify URLs before entering any credentials
  • Use a burner wallet for interacting with dApps
  • Keep only spending money on hot wallets
  • Check contract source code on Etherscan
✗ DON'T
  • Share your seed phrase with anyone — ever
  • Click links from DMs, emails, or social media
  • Store seed phrases in Notes, Photos, or cloud
  • Approve "unlimited" token spending allowances
  • Connect your main wallet to unknown sites
  • Trust "support" agents who DM you first
  • Keep more than you can afford to lose online

Crypto security glossary

Terms you need to know to stay safe.

Seed Phrase

A 12 or 24-word list that back up your wallet. Anyone with these words can restore and control your funds. Never share it.

Private Key

A cryptographic secret that proves ownership of funds. Your seed phrase generates your private keys. Keep it offline.

Public Key

Your wallet address — the identifier others use to send you funds. Safe to share publicly.

Hardware Wallet

A physical device (like Ledger or Trezor) that stores private keys offline. Transactions are signed on-device.

Hot Wallet

A wallet connected to the internet — browser extensions (MetaMask), mobile apps. Convenient but less secure.

Multi-Signature (Multi-sig)

A wallet requiring multiple independent approvals before a transaction executes. Eliminates single points of failure.

Phishing

Fraudulent attempts to obtain sensitive data by disguising as a trustworthy entity — fake websites, emails, or DMs.

BIP39

The industry standard for generating seed phrases. Defines the 2,048-word list and the deterministic wallet generation process.

dApp

A decentralized application. Interacting with dApps requires signing transactions — always verify what you're approving.

Token Approval

Granting a smart contract permission to spend your tokens on your behalf. Always set the minimum necessary amount and expiry.

Burner Wallet

A secondary wallet with minimal funds used only for interacting with unfamiliar dApps. Isolates risk from your main holdings.

2FA (Two-Factor Authentication)

An extra security layer beyond your password. Use an authenticator app (Google Authenticator, Authy) — never SMS-based 2FA.

How secure are your habits?

Check what you already do — and find out where you're still exposed.

Checklist

Security Score

0 / 8
YOUR PROTECTION LEVEL
Check the boxes to see your score.

Transaction Review Simulator

Learn to spot dangerous transactions before you sign them. Try these real-world scenarios.

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Learning Progress

Track your security learning journey. Complete sections to unlock badges.

Overall Completion
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Password Strength Analyzer

Test how strong your crypto passwords are. We never store or send your password.

  • At least 12 characters
  • Contains uppercase letters
  • Contains lowercase letters
  • Contains numbers
  • Contains special characters (!@#$%)

Phishing URL Challenge

Can you spot which URLs are fake? Test your eye for detail.

Score: 0/10

Is this URL legitimate or phishing?

Wallet Recommender

Tell us about your usage and we'll recommend the best wallet type for you.

Multi-Chain Security Guide

Different chains have different risks. Learn how to stay safe on each one.

Ethereum

Focus on token approvals and contract verification. Use revoke.cash monthly. Watch for phishing sites mimicking Lido, Uniswap, and Aave.

Solana

High phishing risk due to airdrop scams. Verify SPL token contracts. Never connect wallet to unofficial "airdrop" sites.

Bitcoin

Simpler attack surface but watch for fake exchanges and wallet apps. Use multisig for large holdings. Store seed phrase offline.

Polygon / Layer 2

Bridge security is critical. Only use official bridges. Cross-chain attacks have drained billions. Verify bridge URLs manually.

DeFi & NFT Security

Advanced threats for DeFi users and NFT collectors.

DeFi Risks

  • Impermanent loss in liquidity pools
  • Smart contract vulnerabilities
  • Rug pulls in new protocols
  • Flash loan attacks

Only provide liquidity to audited protocols. Start with small amounts.

NFT Risks

  • Fake minting sites
  • Malicious NFT metadata
  • Approval scams on marketplaces
  • Wash trading manipulation

Always verify project Twitter/Discord. Never sign unknown approvals.

Mobile Wallet Security

Your phone is a target. Protect it.

App Permissions

Review what each app can access. Wallet apps should not need camera or contacts access.

Public WiFi Risk

Never connect to wallet apps on public WiFi. Use VPN or cellular data for transactions.

OS Updates

Keep your phone updated. Security patches fix known vulnerabilities that could expose your keys.

Screen Mirroring

Avoid casting your wallet screen to TVs or projecting. Screenshots may be stored in gallery.

Family Emergency Guide

What happens to your crypto if something happens to you?

Essential Steps

  1. Write your seed phrase on paper (never digitally)
  2. Store in a fireproof safe or safety deposit box
  3. Tell a trusted family member where it is stored
  4. Consider a hardware wallet with passphrase protection
  5. Create a written recovery letter with instructions
  6. Review and update your estate plan regularly

💡 If your family cannot access your seed phrase, your crypto is lost forever. Plan ahead today.

Security Utilities

Local tools to help you track and manage your security.

Authorization Tracker

Log your token approvals locally. Get reminders to review them monthly.

Device Security Checklist

New device setup guide. Ensure your phone/computer is secure before using wallets.

Transaction Security Log

Printable template for logging your transactions for tax and security review.

Report & Share

Help protect the community by reporting scams and sharing knowledge.

Report a Scam

Found a phishing site or scam contract? Report it to help others.

REPORT NOW

Share Your Certificate

Complete the quiz and share your security score to inspire others.

Contribute

Found an error or have suggestions? Help improve Shielded.

GITHUB ISSUES

Your seeds are your keys.
Your keys are your responsibility.

No one can recover your wallet if you lose your seed phrase. Protect it like the only copy of everything you own — because it is.

TAKE THE SECURITY QUIZ EMERGENCY GUIDE