How to Keep Your Crypto Wallet Safe

How to Keep Your Crypto Wallet Safe

A Guide for E-Commerce Merchants

A Guide for E-Commerce Merchants

May 22, 2024

As an e-commerce merchant, DeFi payments can open up new opportunities for your business, such as lower transaction fees, eliminating chargebacks and instant payouts. It also allows you to offer more payment options to your customers and tap into a growing market. However, incorporating DeFi payments also introduces new considerations, especially concerning the security of your crypto wallet.  This guide will help you understand the basics of crypto wallets and provide essential tips for keeping your wallet safe as you integrate DeFi payments into your business. 

In this post we’ll cover:

  1. What is a Crypto Wallet?

  2. Types of Crypto Wallets

  3. Security Components

  4. How to Protect Your Crypto Wallet

What is a Crypto Wallet? 

A crypto wallet is a device or app that stores your cryptocurrency keys and allows you to access your crypto. Your wallet contains a public key (wallet address) and your private keys needed to sign cryptocurrency transactions. Anyone in possession of the private key has access to the digital currency linked to that wallet address.

Types of Crypto Wallets 

Crypto wallets can be broadly classified into two main categories: custodial and non-custodial wallets. Each category has different types of wallets with varying levels of security and functionality.

Custodial vs. Non-Custodial Wallets 

Custodial Wallets

Custodial wallets are hosted by a third party that holds your assets and stores your private keys. This setup is similar to having a bank account where you log in with a username and password. Many popular crypto exchanges like Binance and Coinbase offer custodial wallets. 

Custodial Wallet Benefits 

  • Beginner friendly user experience 

  • No stress about losing your private keys 

Custodial Wallet Risks  

  • Hacks targeting third party storage can result in loss of funds 

  • Third parties might prevent you from accessing your funds if they go under 

Non-Custodial Wallets 

Non-custodial wallets, commonly referred to as web3 wallets, require you to take responsibility for securing your keys. With this option, you act as your own bank. No one else has access to your funds, and you store your private keys. Popular wallets include Phantom, MetaMask and Xverse.

Non-Custodial Wallet Benefits 

  • Total control over your assets; no risk of third parties losing your funds 

  • Ease of access to your funds 

  • Offline (hardware) storage capability 

  • More flexibility as web3 wallets connect with web3 applications like DeFi, games, NFTs and payment apps

Non-Custodial Wallet Risks  

  • If you lose your keys or wallet information, you lose access to your crypto

  • User interface can be less beginner friendly depending on the provider

  • Greater security responsibility is placed on you

Hot Wallets vs. Cold Wallets

Within the categories of custodial and non-custodial wallets, there are also distinctions between hot wallets and cold wallets.

To maximise security and convenience, many merchants use a combination of hot and cold wallets. A common strategy is to keep a small amount of crypto in a hot wallet for daily transactions and the bulk of the assets in a cold wallet for long-term storage.

To understand whether a custodial or non-custodial wallet is the right fit, you should consider your needs. 

If you prefer to have complete control over your funds then you may choose a non-custodial wallet. If you’re new to crypto and prefer that a third party manages your funds, a custodial wallet might be more suitable.

Security Components 

There are three essential components to securing your crypto wallet: public key, private key and recovery phrase. 

  • Public Key: This is the wallet’s address and looks something like this: HeKhuGRqGYYVF8f8YtkGbv6iCPTTVb1jZcY5cBHMz9HL. Your public key can be shared freely, for example, sending it to someone so they can send you funds. 

  • Private Key: This is used to sign transactions on the blockchain, meaning approving the sending funds. As the name suggests, it’s private and should never be shared. 

  • Recovery/Seed Phrase: When you set up a new wallet, it will provide you with a recovery phrase, a series of 12-24 words generated by the wallet that allows you to regain access to your wallet if you lose it. Keep it secret and safe. 

How to Protect Your Crypto Wallet 

As with anything valuable, there are scammers who will work hard to steal from you and you don’t want to accidentally lose it. Here are our recommendations for keeping your assets and wallet safe: 

Secure your wallet

  1. Set Up Multiple Wallets: Have at least two; one to store your most valuable assets such as cryptocurrencies and NFTs, and one for connecting to dApps and daily transactions. If you’re a merchant transacting in crypto, set up a third wallet for your business. 

  2. Use a Cold Wallet: Store your most valuable assets in a cold wallet. These are hardware devices that stay offline, making them less vulnerable to cyber attacks. Buy your cold wallet from a reputable vendor (like Ledger) and ensure it’s sealed upon delivery. 

  3. Store Your Seed Phrases Safely: Write it down on multiple pieces of paper and store it in more than one place. Do not store it online or on the cloud. 

Do your own research 

  1. Be Careful with Airdrops: Airdrops are a popular way for crypto projects to distribute tokens. But not all airdrops are real. Always DYOR (do your own research!) about the project and double check the site address before joining an airdrop or connecting to a website.  

  2. Be Cautious with Search Engines: The first results are usually ads and might lead you to fake sites. Thoroughly browse the results before clicking a link and being redirected to an external webpage.

  3. Be Wary of Social Media: Phishing attacks are common on social media. Be mindful of DMs on platforms like Twitter, Instagram and Discord. If something seems too good to be true, it’s probably a scam. 


Cryptocurrency isn't inherently unsafe, but it is important to keep your crypto wallets safe from scammers and to avoid losing your keys. By following these tips, you can better protect your digital assets and ensure your e-commerce business runs smoothly with crypto payments.

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© 2024 Helio Fintech Ltd · All rights reserved · Contact us at:

Sell more with crypto

© 2024 Helio Fintech Ltd · All rights reserved · Contact us at:

Sell more with crypto

© 2024 Helio Fintech Ltd · All rights reserved · Contact us at: