Quick take: your 2025 crypto security stack
- Hardware wallet for cold storage with optional passphrase and Shamir backup.
- Phishing-resistant sign-in using passkeys or a FIDO2 security key wherever supported.
- Exchange protections: withdrawal address allowlisting and settings locks.
- Token approval managers to audit and revoke risky allowances.
- Transaction simulation and real-time wallet security alerts.
- Password manager plus breach monitoring.
- Routine checks against common scams like address poisoning and SIM-swap.
1) Hardware wallets and offline signing
A dedicated hardware wallet isolates private keys and signs transactions offline. Most leading devices support an optional passphrase (often called a “25th word”) that derives a separate, hidden wallet; use this only if you are confident you can store it safely.
For Bitcoin power users, partially signed bitcoin transactions (PSBT) enable air-gapped workflows and multi-device signing; they’re defined in BIP-174 and supported across modern wallets.
To reduce single-point-of-failure risk in backups, Shamir Secret Sharing (SLIP-39) splits your seed into multiple shares that can be recombined; Trezor documents the standard and its devices that implement it.
Practical tips:
- Keep long-term funds in cold storage; use hot wallets only for small, active balances.
- Record recovery material offline; consider metal backups for fire/flood resilience.
- Test restores before you need them.
2) Phishing-resistant sign-in with passkeys and security keys
CISA recommends moving to phishing-resistant MFA, specifically FIDO/WebAuthn passkeys or PKI-based methods, because they block credential-phishing and SIM-swap vectors that defeat SMS codes.
Major crypto platforms have begun supporting passkeys. Coinbase provides passkeys for both the exchange and smart wallet experiences, reducing reliance on passwords and OTPs. Binance documents passkey verification as part of its 2FA flow.
Regulators have tightened rules against SIM-swap and port-out fraud; the FCC’s order requires stronger carrier authentication and customer alerts, underscoring why SMS codes alone are not enough.
What to do:
- Prefer passkeys or a hardware security key over SMS.
- Remove phone numbers from account recovery where feasible.
- Add unique carrier PINs and account locks with your mobile provider.
3) Exchange hardening: allowlists and settings locks
Withdrawal address allowlisting lets you restrict withdrawals to preapproved addresses only. Coinbase explains how to enable allowlisting so funds cannot be sent to any address not on your list.
Kraken’s Global Settings Lock (GSL) places a time-delay and lock on sensitive changes (password, 2FA, withdrawals), acting as a last-line defense if your sign-in is compromised.
Binance supports withdrawal address management and passkeys; review these controls in your account security settings.
Best practices:
- Turn on allowlisting and keep at least one verified self-custody address per network.
- Enable settings locks or security delays wherever available.
- Set up withdrawal alerts by email/app and review device/session lists regularly.
4) Token approval managers: audit and revoke risk
On EVM chains, dApps often obtain “token approvals” that let contracts spend your assets. Audit and revoke old or unlimited approvals using tools like Etherscan’s Token Approval Checker or Revoke.cash. These tools explain what’s approved and help you revoke with a small gas fee.
Guidelines:
- Revoke approvals you no longer need, especially for high-value tokens and NFTs.
- Prefer contracts that request minimal, not unlimited, allowances.
5) Transaction simulation and real-time wallet alerts
Before you sign, simulate the transaction to see what actually moves or gets granted. MetaMask integrates Blockaid-powered, privacy-preserving security alerts across major chains to warn on malicious dapps.
If you use other wallets or want another layer, consider third-party simulation tools such as Pocket Universe or providers like Blowfish that power simulations in multiple wallets. Note that the Wallet Guard browser extension was sunset in March 2025, so migrate to alternatives.
Recommendations:
- Keep MetaMask security alerts enabled.
- Use a simulation add-on where supported, and read the human-readable outcome before signing.
6) Blockchain explorers and on-chain hygiene
Explorers such as Etherscan let you inspect addresses, verify contract details, and review past approvals or interactions before sending funds. Use them to cross-check recipient addresses, contract deployers, and labels.
7) Password manager and breach monitoring
Use a reputable password manager to generate long, random, unique passwords. CISA advises passwords of at least 16 characters and endorses password managers to meet those standards at scale.
Monitor your email addresses for exposure in known breaches with Have I Been Pwned; if you’re listed, rotate affected passwords and enable passkeys/MFA.
8) Guard against common scams: address poisoning, SIM-swap, wallet drainers
Address poisoning tricks users into copying a look-alike address from their history. Always verify the full checksum, not just a few characters; Ledger’s guidance explains the pattern and mitigations.
SIM-swap remains a major account-takeover vector; the FCC’s rules now require carriers to strengthen authentication and alert customers on SIM or port-out changes. Replace SMS with passkeys or app-based authenticators.
Wallet drainers and malicious dapps continue to evolve; rely on built-in wallet alerts and trusted security providers to flag risky signatures before approval.
9) Multisig and smart-account options for larger holdings
For team or higher-value holdings, a multisig or smart account like Safe{Wallet} reduces single-key risk and adds policy controls. Safe also integrates with security providers to detect risks such as address-poisoning during sends.
Setup pointers:
- Use at least a 2-of-3 threshold across independent devices.
- Store recovery data for each signer separately.
Step-by-step setup checklist
- Choose a hardware wallet and complete an offline backup drill.
- Enable a passphrase or Shamir backup if you understand the trade-offs.
- Migrate key accounts to passkeys or a FIDO2 key; remove SMS where possible.
- Turn on exchange protections: allowlisting and settings locks.
- Install or enable wallet security alerts and a transaction simulator.
- Audit token approvals quarterly; revoke stale or unlimited permissions.
- Use a password manager and run email breach checks; rotate credentials as needed.
- Educate your household or team on address-poisoning and SIM-swap red flags.
FAQs
Are passkeys really safer than app codes or SMS?
Passkeys are phishing-resistant and bound to the legitimate site via public-key cryptography, preventing credential replay or capture; CISA calls FIDO/WebAuthn the only widely available phishing-resistant MFA today.
Which token-revocation tool should I use?
Both Etherscan’s Token Approval Checker and Revoke.cash are widely used; they read existing allowances and let you revoke them with a single transaction.
Should individual users adopt multisig?
If you’re securing substantial funds, a 2-of-3 multisig across independent devices greatly reduces single-key risk; smart accounts like Safe{Wallet} make this practical for individuals too.
Final word
Security is a stack and a habit. Combine offline key custody, phishing-resistant sign-in, locked-down exchange settings, proactive approval audits, and real-time transaction warnings. Revisit this setup quarterly and after major breaches or device changes.
