Security.org's crypto safety guide advises keeping coins on an exchange only while you trade them actively and moving the rest to an external wallet. It draws the line at active trading. For everyday spending, bitcoin.org says it is good practice to have only small amounts on a computer or mobile device. It says an offline wallet, known as cold storage, gives the highest level of security for savings. New Zealand's government guide, Own Your Online, says wallets that hold cryptocurrency must be backed up to offline storage.
Key facts from bitcoin.org
- Own keys: Prefer holding your own keys whenever practical.
- Everyday money: It is good practice to have only small amounts on a computer or mobile device.
- Savings: Offline cold storage offers the highest level of security.
- Hardware wallets: "The best balance between very high security and ease of use."
- Backups: Losing a device without a proper backup can make funds unrecoverable.
Sort each holding by how you use it
Security.org says to keep on an exchange only the crypto you trade actively. Bitcoin.org calls it good practice to have only small amounts on a computer or phone for everyday use. It says offline cold storage gives the highest level of security for savings. It also calls hardware wallets "the best balance between very high security and ease of use." Read together, these rules give each holding one of three homes.
Where should this crypto be kept?
Answer up to three questions about one holding to see where the guides say it belongs.
Are you trading this crypto actively right now?
Source: 2026 Guide: What You Need to Know to Invest in Crypto Safely (security.org), accessed Oct 14, 2026Is it money for everyday use from a phone or computer?
- Yes → Have only a small amount on your device
- No, it is savings → next question
For these savings, do you want ease of use alongside high security, or maximum security?
- Ease of use with high security → Consider a hardware wallet
- Maximum security, cold storage → Use offline cold storage
Security.org advises keeping crypto on an exchange only while trading it actively. Move it to an external wallet when you stop.
Source: 2026 Guide: What You Need to Know to Invest in Crypto Safely (security.org), accessed Oct 14, 2026Bitcoin.org calls it good practice to have only small amounts on a computer or mobile device for everyday use.
Source: Securing your wallet - Bitcoin (bitcoin.org), accessed Oct 14, 2026Bitcoin.org calls hardware wallets "the best balance between very high security and ease of use." Own Your Online says to back the wallet up to offline storage.
Source: Securing your wallet - Bitcoin (bitcoin.org), accessed Oct 14, 2026 · Keep cryptocurrency secure | Own Your Online (ownyouronline.govt.nz), accessed Oct 14, 2026Bitcoin.org says an offline wallet, known as cold storage, gives the highest level of security for savings. Own Your Online says to back the wallet up to offline storage.
Source: Securing your wallet - Bitcoin (bitcoin.org), accessed Oct 14, 2026 · Keep cryptocurrency secure | Own Your Online (ownyouronline.govt.nz), accessed Oct 14, 2026The check sorts by how you use the coins only, because the guides set no dollar limit for a small amount or for active trading.
Keep your own keys and an offline backup
Bitcoin.org says to prefer holding your own keys whenever practical. It says losing a device without a proper backup can make funds unrecoverable. Own Your Online says wallets used to store cryptocurrency must be backed up to offline storage. That backup protects you from losing the wallet if anything goes wrong.
Never share the key
Own Your Online says sharing your private key gives someone access to all of your cryptocurrency and anything else saved in the wallet. It also suggests a password manager as an easy way to store passwords and private keys so you do not forget or lose them. The same guide says wallets must be backed up to offline storage. It does not say whether a password manager counts as offline storage. Bitcoin.org's scam guide adds one rule: "No legitimate support representative will ever ask for your seed phrase or private key."
Lock down logins and software
Security.org advises against codes sent by text message for two-factor authentication (2FA) where possible. It says an authenticator app such as Google Authenticator or Authy is "a much more secure option" for 2FA codes. A blog post from Stellar Cyber says wallet updates often include patches for vulnerabilities that hackers would otherwise exploit.
Why it matters: losses and no insurance
Security.org notes that crypto is not insured by the Federal Deposit Insurance Corporation (FDIC). It says crypto hacks and exploits drained approximately $2.2 billion in 2024, a 21 percent increase over 2023. Yahoo Finance, in an April 2, 2026 article, cites the Federal Bureau of Investigation (FBI). The FBI says victims of crypto investment fraud reported more than $6.5 billion in losses in 2024.
Analysis: self-custody moves the risk to you
Leaving an exchange does not end the risk. It shifts it to the holder. Once the keys are yours, a lost device without a backup can make the funds unrecoverable. A key given to a fake support agent gives access to the whole wallet. The two 2024 loss figures come from different measures. One counts hacks and exploits, the other reported investment fraud. They cannot be added or ranked. The offline backup and a firm rule never to share the key are the parts of the setup the holder controls.
What is confirmed and what is not
Each placement rule rests on one publisher. Only Security.org states the exchange rule this strictly. Bitcoin.org gives the advice on own keys, everyday amounts, cold storage, hardware wallets and lost devices. Own Your Online is the source for offline backups. Each 2024 loss figure rests on a single publication. The FBI total appears as Yahoo Finance cites it. Several of the guides carry no date, and one lists a date older than the 2024 events its text describes.
If you trade often
Security.org's rule still leaves the coins you trade actively on an exchange. A separate explainer covers how crypto day trading works, what it costs and three checks to run first. Next step: list each holding and sort it by how you use it. Check again when you buy, move or stop trading a coin.
Sources: 2026 Guide: What You Need to Know to Invest in Crypto Safely (security.org), accessed Oct 14, 2026 · Securing your wallet - Bitcoin (bitcoin.org), accessed Oct 14, 2026 · Keep cryptocurrency secure | Own Your Online (ownyouronline.govt.nz), accessed Oct 14, 2026 · Choose your wallet - Bitcoin (bitcoin.org), accessed Oct 14, 2026 · Avoid Scams - Bitcoin (bitcoin.org), accessed Oct 14, 2026 · Advanced Techniques to Secure Your Crypto Wallet Safely (stellarcyber.ai), accessed Oct 14, 2026 · Yahoo Finance, accessed Oct 14, 2026
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