As we move deeper into 2025, the cryptocurrency market continues to grow rapidly, attracting both seasoned investors and curious newcomers. But with increasing adoption comes increasing risk. From phishing scams to private key mishandling, many users still fall victim to wallet-related security mistakes. If you’re looking to protect your digital assets and choose the best wallet for crypto, understanding what not to do is just as important as knowing the best practices.
In this article, we’ll break down the most common crypto wallet mistakes and how to avoid them — so you can confidently store and manage your assets using a secure crypto wallet.
1. Using Custodial Wallets Without Understanding the Risks
One of the most common mistakes new users make is using custodial wallets provided by exchanges without realizing the limitations. In a custodial wallet, a third party (usually the exchange) holds your private keys. While convenient, this approach puts your assets at risk if the platform gets hacked, freezes your account, or goes bankrupt — as seen with past exchange collapses.
Solution: Always opt for a secure crypto wallet where you control your private keys. Non-custodial wallets like PlusWallet give you full ownership and reduce third-party risk.
2. Failing to Back Up Your Recovery Phrase
When setting up a non-custodial wallet, you’re given a 12- or 24-word seed phrase (also called a recovery phrase). Losing this phrase means losing access to your assets forever. Some users skip the backup step or store it in insecure locations like cloud services or screenshots.
Solution: Write down your seed phrase on paper and store it offline in multiple secure places. For enhanced protection, consider metal backup solutions that are fire- and water-resistant.
3. Reusing Wallet Addresses
While reusing addresses may seem harmless, it compromises your privacy and makes it easier for third parties to track your transactions. Some wallets even allow you to generate a new address for every transaction to enhance anonymity.
Solution: Choose the best wallet for crypto that offers address rotation features and privacy-focused tools, especially if you’re dealing with large or frequent transactions.
4. Ignoring Wallet Updates
Developers frequently update wallets to patch bugs, add new features, and enhance security. Skipping these updates leaves your wallet vulnerable to exploits and compatibility issues.
Solution: Regularly check for software updates and ensure you’re always running the latest version of your secure crypto wallet, especially if you’re using a desktop or mobile app.
5. Using Insecure Devices
If your smartphone or computer is infected with malware or keyloggers, your wallet could be compromised — even if the wallet itself is secure. Public Wi-Fi networks, outdated operating systems, and jailbroken/rooted devices are common entry points for hackers.
Solution: Use secure, up-to-date devices and install antivirus software. Avoid accessing your wallet on public networks and never store sensitive data on shared or compromised machines.
6. Falling for Phishing Scams
Phishing attacks are one of the most common threats to crypto wallet users. Hackers often send fake emails, texts, or even create cloned websites to trick users into revealing their recovery phrases or private keys.
Solution: Never share your seed phrase or private keys — with anyone, ever. Bookmark your wallet’s official site and double-check URLs. A secure crypto wallet will never ask for your phrase via email or pop-ups.
7. Choosing the Wrong Wallet for Your Needs
Not every wallet is built the same. Some are optimized for trading, others for long-term storage or DeFi access. Choosing the wrong wallet type can result in poor user experience or increased exposure to risk.
Solution: Determine your needs before choosing. If you’re a mobile user who frequently swaps tokens, the best wallet for crypto will be one that supports multi-chain swaps, has a user-friendly interface, and strong mobile security — like PlusWallet. If you’re a long-term holder, consider a hardware wallet for offline storage.
8. Neglecting Two-Factor Authentication (2FA)
Many wallets and associated platforms offer two-factor authentication (2FA), but not all users take the time to activate it. Without this extra layer of protection, your wallet is more vulnerable to unauthorized access.
Solution: Enable 2FA whenever available. Use authentication apps like Google Authenticator or Authy instead of relying on SMS codes, which can be intercepted through SIM-swapping.
9. Using Unverified Wallet Apps
Scam apps impersonating legitimate wallets often make it into app stores. Downloading the wrong app can lead to instant theft of your assets.
Solution: Only download wallets from official sources — such as the project’s verified website or trusted app marketplaces. Verify the developer’s name, check reviews, and look for frequent updates.
10. Not Testing with Small Amounts First
Sending large amounts of crypto without first testing the address or network is risky, especially when switching chains or using new wallets. Even a simple typo or choosing the wrong blockchain can result in permanent loss.
Solution: Always start with a small transaction to ensure everything is working correctly before transferring larger amounts.
Final Thoughts
The crypto space in 2025 is more powerful — and more complex — than ever. With increased adoption comes greater responsibility. Avoiding these common mistakes is essential to keeping your assets safe and ensuring a smooth experience with your secure crypto wallet.
Whether you’re trading daily or holding for the long term, choosing the best wallet for crypto means prioritizing security, usability, and control. Platforms like PlusWallet combine all these features into one intuitive, multi-chain solution, empowering you to manage your digital assets with confidence.
Your crypto wallet is your personal bank. Make sure you’re treating it like one.