sport football: Hackers Want Your Bitcoin... Here’s How to Keep It Safe

Hackers Want Your Bitcoin… Here's How to Keep It Safe

Would you travel to four different continents just to securely access your bitcoin?

It may seem like an extreme measure… But that's exactly the security protocol one family implemented to prevent thieves from accessing their bitcoin.

There's a reason for the hypervigilance.

Over the past couple of months, several high-profile bitcoiners have been targeted by thieves.

Last month, kidnappers held the father of a Paris-based crypto millionaire for ransom. Authorities found him two days later with a finger cut off.

A few days later, three masked men ambushed the daughter of a French crypto exchange owner and tried to kidnap her.

And as one of the most widely followed personalities in the crypto space, even Daily editor Teeka Tiwari hasn't been spared from this kind of threat.

You've probably heard stories about strangers stalking Teeka's kids on social media and hackers trying to break into his crypto accounts.

Over the past six months, I've travelled to Portugal, Singapore, Canada, and Las Vegas to uncover the biggest ideas on the crypto market.

Writing to you publicly, I'd be lying if I said I don't worry about someone trying to abduct and ransom me for my bitcoin.

Despite those concerns, I can't imagine doing anything else. It's my goal to deliver world-class crypto research to you. And the best way to get my hands on that research is traveling the world and meeting the experts and visionaries.

But here's the bottom line when it comes to staying safe in the digital asset world…

Whether you're a high-profile crypto expert like Teeka or a smaller investor… It's crucial to have proper storage solutions for your digital assets.

Not doing so could mean the difference between having a sizable retirement nest egg or losing it all to malicious actors, corporate bankruptcies, or even your own mistakes.

Many of you have been with Teeka since he recommended bitcoin back in April 2016 at $400 and change. Today, it's trading around $110,000. That's a 26,090% gain – enough to turn every $1,000 into $261,900.

And some of you joined Teeka when he launched his own company in March 2024. Since then, bitcoin is up 62%. That's still a tidy sum in about one year.

With bitcoin poised to break out to all-time new highs for the second time in three weeks, I've received questions from many of you asking which bitcoin storage solutions are the best to keep your funds secure.

The truth is, there isn't a one-size-fit-all solution. We all have different technical capabilities and risk tolerances.

Depending on your situation, one storage solution might be better than another.

Now, I won't suggest you come up with a continent-spanning method to ensure your crypto holdings remain secure… But you must make sure you're taking the necessary steps for whichever storage solution best suits your needs.

In today's essay, I'll share the four primary ways you can hold bitcoin and the advantages and disadvantages of each.

Option 1: Hot Wallets

Hot wallets are apps you can download on your smartphone or computer. Popular hot wallets include MetaMask, Trust Wallet, and Coinbase Wallet.

They're called "hot wallets" because they are always connected to the internet.

The main advantage of hot wallets is they're super easy to set up and use. Whenever you want to make a transaction, just click a few buttons, and you're done.

On top of this, the assets remain in your custody. So even if the wallet provider shuts down, you can import your private keys into the wallet and retrieve your assets.

The main disadvantage of hot wallets is they're more susceptible to hacks since they're always online.

This makes hot wallets a great option for day traders or anyone who wants to store a small amount of their crypto funds for short-term use. But we recommend never storing the bulk of your digital assets in a hot wallet.

Option 2: Cold Storage Wallets

Cold wallets also let you maintain custody of your assets. But unlike hot wallets, they're physical devices that aren't always connected to the internet.

Two of the most popular cold storage wallet devices are Ledger and Trezor. Here's how they work…

You store your private keys on a separate hardware device that you have to manually connect to your computer or smartphone when you're ready to make transactions.

Since you can disconnect these devices from the internet, they reduce the chances you'll get hacked. They're the ultimate security tool for storing crypto assets.

The drawback of cold storage wallets is that they take longer to set up than hot wallets. And when you want to make transactions, you have to connect the device to the internet. For those looking to make fast trades, this time delay can be a drawback.

It's important to note hot and cold wallets put all the responsibility of managing your funds entirely on your shoulders.

If you don't feel comfortable managing your own funds, you should choose one of the next two options. That's because mismanaging or losing your keys, or falling victim to a hack, can lead to a total loss of funds.

Option 3: Crypto Exchange

The first place many investors typically go to buy crypto is an exchange like Coinbase or Binance. After purchasing crypto, you can send your assets to a hot wallet or a cold storage wallet like the ones mentioned above.

But if you don't want to take custody of your assets, you can leave them on the exchange.

This is a simpler option than hot or cold wallets because you don't need to create a new account elsewhere, and you can just sell or convert your assets right on the exchange whenever you want to.

But leaving your assets on the exchange comes with added risks…

As long-time readers know, centralized entities can fall victim to hacks and some have even been known to mismanage user funds.

A recent example was the well-publicized collapse of the crypto exchange FTX. In 2022, the exchange filed for bankruptcy. In the blink of an eye, more than $30 billion in clients' crypto assets went up in smoke.

Investors who held funds on the exchange only recently received access to their funds. And they only got back a fraction of what they originally held on the exchange.

Another drawback of holding assets on an exchange is, of course, hackers. In February 2025, hackers ran off with nearly $1.5 billion from the Bybit exchange. It's believed to be the largest crypto heist in history.

Aside from hacking the entire exchange, hackers can target your personal account on an exchange, too. In this situation, if they have your info, they can send your crypto assets on the exchange to their personal wallets. If that happens, there's nothing you can do to retrieve your funds.

That's why holding crypto assets on an exchange is quite risky. If you plan to hold crypto assets on an exchange, make sure it's only a small amount you won't lose any sleep over if it's lost.

Option 4: Brokerage Accounts

With the launch of spot exchange-traded funds (ETFs) last year, you can now gain exposure to bitcoin and hold it in your brokerage account just like stocks or bonds.

While I'm a crypto expert and have the skills to take self-custody of my assets, this is my favorite way to hold bitcoin.

In the past, I held my crypto assets on a hardware wallet. But I no longer care to bear that responsibility.

I don't want to think about losing access to my private keys if my house burns down. Or if someone breaks into my home and steals my private keys while I'm away.

By buying bitcoin ETFs like BlackRock's IBIT or Fidelity's FBTC, I put the responsibility of private key management to BlackRock and Fidelity.

These are some of the biggest, most well-established companies on Wall Street. They've been managing billions of dollars' worth of assets for millions of clients for decades. And they're no slouches when it comes to taking their crypto products seriously, either.

IBIT stores its bitcoin with Coinbase, the largest U.S. crypto exchange. And Fidelity has its own in-house digital asset service team that's been working in crypto since 2014.

Of course, there's a risk that even the most well-respected firms can mismanage or lose your funds or private keys.

There's also a small expense fee, usually about 0.25% – which is in line with most major ETFs. Overall, that's a tradeoff I'm willing to take.

Which Option Should You Choose?

Like I mentioned above, unfortunately, there isn't one perfect solution for everyone. That's because we all have different needs. Only you can decide which option is best for your needs.

If you value self-custody and want a convenient option, hot wallets for smaller amounts might work best for you.

If you want that same type of self-custody but also want the most secure option, consider a hardware wallet.

If you don't want to self-custody your crypto assets, consider holding your bitcoin in a brokerage account through an ETF.

And if you're a short-term trader and need to make quick transactions, it makes sense to hold small amounts on crypto exchanges.

No matter which option you choose, you need to educate yourself on the risks that come with each storage method.

Keep Stacking Bitcoin!

Houston Molnar

P.S. With bitcoin closing in on a new all-time high, we expect altcoins to follow soon. And to make sure you can secure your profits from their rise, you'll need custody solutions for them, as well.

That's important because one of the biggest and potentially most profitable trends we've been following in the altcoin space is AI agents.

So while bitcoin would have increased your investment 10x over the past few years, the best plays in this space have the potential to deliver even higher gains over a much shorter period. That's how huge the opportunity with AI agents is right now.

As a refresher, AI agents are more advanced forms of AI chatbots.

If you use the internet, you're probably already familiar with AI chatbots. They can answer questions… Write articles, social media posts, emails, and resumes… And help you book a travel reservation.

While bitcoin adoption as a corporate asset is becoming a major financial story, the AI agent trend is flying under the radar.

But we believe the space will be a big beneficiary as money from bitcoin trickles into the ecosystem.

Teeka recently put together his most recent research briefing on how he sees the AI agent trend playing out.

He also wrote a special report on what our research suggests are the top six names in the space. These are coins we believe could make you a life-changing amount of money this year.

You can watch a replay of his research briefing right here. It won't be available for long, so be sure to view Teeka's latest AI agent briefing now.