Crypto Safety Guides
Five Rules That Prevent Most Losses
- Never share your seed phrase, not with support, not with a wallet "validator," and never type it into a website.
- Ignore unsolicited investment offers, whether a text, DM, dating match, or "wrong number."
- Never pay to withdraw. Fees or "taxes" demanded before a withdrawal mean the platform is fake.
- Use app-based two-factor authentication or a hardware security key, not SMS codes.
- Move long-term savings to a wallet you control once the amount matters to you.
If Something Has Already Gone Wrong
Stop sending money, call your bank, and report it to the FBI's IC3 and the FTC. Be wary of anyone who offers to recover your crypto for a fee. Our first 24 hours checklist walks through each step.
Why Crypto Safety Comes First
Crypto has no bank to reverse a payment and no support line that can restore a stolen wallet. Once coins leave your control, they're usually gone. Americans reported more than $11 billion in crypto-related fraud losses to the FBI in 2025, according to the IC3 annual report, and that counts only the people who reported.
Most losses don't come from hackers breaking blockchains. They come from people being persuaded to send money, share a seed phrase, or install a fake app. That's good news, because those risks are mostly within your control. The guides above cover the three areas that matter: recognizing scams, storing coins safely, and knowing what's legal.
A Secure Crypto Setup in Five Steps
- Buy on a regulated US platform you found yourself, not through a link someone sent you. Our Coinbase vs Kraken comparison covers two of the largest.
- Lock down the account: use a unique password, an authenticator app or hardware security key instead of SMS codes, and withdrawal address allow-listing if the exchange offers it.
- Decide where long-term coins live. Small, active balances can stay on an exchange. Savings you won't touch for months belong in a wallet you control. See hot vs cold wallets.
- Protect the seed phrase: write it on paper or metal, store it offline in a safe place, and never type it into a website or share it. Read what a seed phrase is before you create one.
- Learn the scam patterns in our Bitcoin scam guide: fake giveaways, romance "investment" scams, crypto ATM demands, and recovery scams.
Is Crypto Legal in the US?
Yes. Owning, buying, and selling crypto is legal in every state. What's regulated is the businesses that serve you, through federal agencies such as the SEC, CFTC, and FinCEN and state licenses such as New York's BitLicense, along with how you're taxed. Our legal guide explains who regulates what, and what is actually illegal.
Crypto Safety FAQ
Is it safe to keep crypto on an exchange?
Reasonably safe for small or actively traded amounts on a large, regulated US exchange with strong account security. The exchange holds the keys, so you depend on its security and solvency. For larger long-term holdings, a wallet you control removes that dependency.
What should I do if someone saw my seed phrase?
Treat the wallet as compromised. Create a new wallet with a new seed phrase on a trusted device, move all funds to it immediately, and stop using the old one. Changing a password doesn't help, because the seed phrase controls the funds.
How do I report a crypto scam?
File reports with the FBI's Internet Crime Complaint Center at ic3.gov and with the FTC at ReportFraud.ftc.gov. Include dates, amounts, and wallet addresses. Contact your bank and the exchange you sent from as quickly as possible.
Can stolen crypto be recovered?
Rarely. Blockchain payments can't be reversed, and recovery usually happens only when law enforcement seizes funds. Anyone who charges an upfront fee to recover your crypto is very likely running a second scam.