Learn custody, hot vs cold wallets, seed phrase rules, and safe habits.
Definition
Market intelligence means making decisions with data, context, and risk rules. Not with hype or fear.
Custody. Who holds the keys
A wallet is a tool for managing keys and signing transactions. If an exchange holds your keys, you have an account, not direct custody. If you hold the keys, you control funds but you also carry responsibility.
Seed phrases explained
A seed phrase is a human readable backup that can recreate your wallet keys. Anyone with the seed can take funds. There is no password reset.
Non negotiable
Never store a seed phrase in screenshots, email, cloud notes, or chat apps. Write it down offline. Store it where theft and fire are both unlikely.
Hot vs cold wallets
- Hot wallet. Connected device. Convenient. Higher risk.
- Cold wallet. Keys stay offline. Safer for long term holdings.
Safe habits that matter
- Use a password manager for exchange logins.
- Enable 2FA with an authenticator app.
- Verify addresses by copy and paste, then check first and last characters.
- Send a small test transfer before large transfers.
Tip
Security is a system. A single perfect tool does not exist. Use layered habits.
Quick quiz
- What does custody mean.
- Why is a seed phrase high risk.
- When should you use a cold wallet.