How to manage multiple crypto wallets

By Guest Author

January 22, 2025

With the growing adoption of cryptocurrencies in the mainstream, there is an increasing number of wallet options. This has led to many users not only choosing one but often several in order to cover all of their bases and needs. In fact, having multiple wallets can indeed be a beneficial thing - even if you are a beginner in the crypto world. In this article we’re going to explore the best way for you to handle multiple wallets to maximize security and convenience.

Understanding wallet types

Put in the simplest possible terms, crypto wallets are apps or physical memory storage solutions in which you can safely store the keys to your cryptocurrencies. But, in order to understand how to manage them, you need to know what are the differences between various types.

Hot wallets are the “active” variants, always connected to the web. They come as browser extensions or web services, but the most common subvariant is the mobile app. There are a plethora of wallet apps, such as those here, you can find out there for both iOS and Android phones. Among the crowd. it’s important to pick the ones that are safe and reputable. Always look for a user-friendly app for pros and beginners that can handle different blockchains and keep your funds perfectly secure.
Cold wallets are offline storage units for your keys. They can be hardware wallets - secure and/or encrypted memory sticks - or paper wallets with printed keys. They are usually used for long-term secure storage of big amounts of crypto.

Why do you need multiple wallets

It might seem like too much of a hassle at first, but there are some very valid reasons to keep multiple wallet apps.

If any one of your wallets ever gets compromised, keeping funds separate will reduce the damage as opposed to keeping all your eggs in one basket.
You can use them for different purposes: storing, trading, staking, NFT holding, etc.
Keeping your portfolio segmented further enhances your privacy.
Multiple wallets improve the amount of supported currencies you can use and trade with.

How to manage multiple wallets

1. Create an inventory

One of the best practices is to create a spreadsheet or use an app to track and catalog your wallets. Here you can store all your wallet addresses with other info like their types, balances, recovery phrases and such. Make sure to keep this inventory updated at all times and keep it secure and private.

2. Categorize by function

Using their primary function, make an organized list with sublists of your wallets for:

Trading: the ones you frequently use for exchanges and transactions
Saving: the ones you keep your currencies in for long-term storage
DeFi: for daily use with decentralized finances
NFT: for separate storage and trading of non-fungible tokens

Using tags and labels to create any categories and subcategories might make this even easier for you.

3. Secure recovery and backup info

Always make a point of storing recovery phrases and private keys somewhere both secure and easily accessible to you. Some of the ideas that might help:

Make use of a good password manager app with decent encryption to store both credentials and additional notes.
Never store any sensitive info about your wallets on cloud services in order to reduce risk of hacking and infection.
Create backups off the web, either paper or in secure USB sticks that will not be used on computers with significant risks of infection.

Security best practices

Crypto safety is an ever evolving science, and one we highly recommend taking your time to explore and learn. In the meantime, keep these most important points in mind.

Use multi-layered security options: Enable 2FA or other types of authentication, use hardware wallets where applicable, utilize strong passwords
Avoid public networks: Never use your wallets for transactions on public WiFi in order to avoid privacy breaches and malicious interceptions
Monitor your transactions: Review the activity of your hot wallets and check for unauthorized or suspicious transactions regularly

Mistakes to avoid

It’s easy to see that you need to be focused on details when working with multiple wallets. There are some common mistakes people make and these are the ones to look out for:

Losing track of wallets: If you lose your addresses once you’ve lost them forever so make sure to document everything at all times in order to avoid losses you won’t be able to retrieve.
Centralizing assets: Storing all the funds you trade with in one wallet is not a good idea, even if you use others for long term holding. Make sure to diversify the apps you keep your trading assets on, even if you are trading daily.
Keeping large funds in hot wallets: If you are in possession of a substantial amount of crypto funds, always make sure to keep all the extra (non-trading) amounts in cold wallets and keep only the part in rotation on online apps.
Not updating your wallets: While this might sound like a no-brainer, there were many cases of people losing their crypto funds because they skipped security updates for their wallets. Keep them updated to reduce any security vulnerabilities.

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