How to Know If a Crypto Wallet Is Safe

Mila Mostovaya

December 29, 2025

Guide Security

Hi cryptofans ✨

Every year, billions of dollars are lost due to hacked apps, phishing attacks, and poor key management. That is why questions like what is a reliable crypto wallet, which crypto wallet is the best, and how to secure crypto wallet matter more than ever.

In a market filled with bold promises and flashy interfaces, finding a safe crypto wallet is not about popularity — it is about security architecture, transparency, and control.

In this short guide, we decided to break down what experts actually look for when evaluating the most reliable crypto wallet, answer what is the most reliable crypto wallet for real self-custody, and explain how to judge whether a crypto wallet app truly deserves your trust.

If you have ever asked what’s a good crypto wallet or which cryptocurrency wallet is best for long-term security, this article will give you clear, practical, expert-backed answers.

Open-Source Code

Trusted crypto wallets usually have open-source code that is available for community review. This means that anyone (including security experts) can audit the code and make sure there are no backdoors or vulnerabilities. “Cryptographic wallets should be developed based on secure architecture and an open-source model,” notes Thomas Hardjono, Technical Director at MIT Connection Science.

An example is the Trezor hardware wallet, which has long become synonymous with open-source security — its firmware is fully open, providing an unprecedented level of trust from the community. In contrast, closed-source code does not allow the community to conduct an independent audit, so industry experts treat such wallets with caution.

Open code by itself does not guarantee absolute protection, but it increases transparency and the likelihood that vulnerabilities will be found and fixed before attackers can. Therefore, when choosing a wallet, it is worth giving priority to projects with open-source code and an active developer community.

Independent Security Audits

A good crypto wallet’s reputation is strengthened when its code and infrastructure have been audited by reputable cybersecurity firms. Ideally, the results of such audits are published openly. Regular code reviews help identify hidden vulnerabilities in a timely manner and demonstrate the wallet team’s commitment to user security.

For example, Trust Wallet has open-source code and has been audited by Certik, which adds credibility to its security model. Another example is OKX Wallet, which has been audited by independent experts and is open to the community, allowing it to build a solid security foundation.

Therefore, when choosing a wallet, look for information about completed audits (for example, reports from Certik, Trail of Bits, Kudelski Security, and others) and the team’s transparency on security matters. Reliable wallets also often publicly state that they have undergone security audits.

Multi-Signature (Multisig) Support

Multisignature is a technology in which multiple independent keys are required to authorize a transaction. A wallet with multisig support allows, for example, a “2 of 3 signatures” rule, where a transfer is executed only if at least two owners (or two devices) sign the transaction with their private keys.

This significantly increases security: compromising a single key is not enough to steal funds. As Investopedia notes, “the main purpose of multisignature wallets is to enhance the security of digital assets by requiring multiple confirmations for transactions. Such wallets make unauthorized access and theft more difficult.”

Experts recommend using multisignature setups for large amounts or shared accounts. For example, entrepreneur Paolo Cernigliaro shares: “For substantial funds, I use a multisig configuration — it requires multiple signatures to complete a transaction, adding an extra layer of protection.”

Hardware Wallet Compatibility

If a self-custodial software wallet supports integration with hardware devices, this is a major advantage. For example, many advanced users prefer a combination of a hardware wallet and a convenient software wallet.

This type of hardware setup provides an additional layer of protection, because even if a computer is compromised, an attacker cannot steal the private keys — all critical operations require confirmation on the physical device.

Therefore, when evaluating a new wallet, check whether it can work in combination with hardware devices. This is a strong sign that the developers are focused on providing maximum security.

Encryption and Additional Protections

A reliable wallet should provide strong encryption of data and keys on your device. This includes encrypting the wallet file or storage, setting a PIN code or password for access, and ideally supporting biometrics (such as Face ID or a fingerprint) to protect against unauthorized access. For example, Coin Wallet stores private keys locally in encrypted form and allows access to be protected with a PIN code and biometrics.

Another useful feature is anti-phishing mechanisms: some wallets warn users if they visit a suspicious website or attempt to interact with a smart contract that has been flagged as malicious.

An additional advantage is two-factor authentication (2FA) for critical operations (for example, confirming withdrawals via a code in an app or via email/SMS). Some modern wallets implement MFA (multi-factor authentication); for instance, the Zengo wallet uses an unconventional 3FA model instead of a seed phrase.

Finally, a good indicator of reliability is regular wallet app updates. An actively maintained project can deliver patches more quickly to fix discovered vulnerabilities.

Reputation, History, and Community Trust

Pay attention to the wallet’s track record: how many years it has been on the market, whether there have been any known hacking incidents or key leaks, and what reputation it has among experts. Reliable wallets are usually mentioned in any crypto wallet review by well-known crypto media outlets and recommended by experienced users.

It is also useful to look at community feedback (for example, on Reddit or BitcoinTalk), evaluate the number of downloads, and assess the overall level of trust. In addition, consider who is behind the development — whether the company or team is publicly identified, whether there is an active community on GitHub, and whether security reports are published.

Overall, a large user base and a long history of incident-free operation indirectly indicate the reliability of a wallet’s architecture.

The Final Point

There is no single feature that makes a crypto wallet safe — real security comes from a combination of transparent design, proven technology, and responsible user behavior. A reliable self-custodial wallet gives you full control over your private keys, uses open and auditable code, supports strong encryption and hardware protection, and has a clear track record of security over time.

But even the most reliable crypto wallet cannot protect funds if basic rules are ignored. Understanding how to secure a crypto wallet, recognizing phishing risks, and properly storing recovery phrases are just as important as choosing the right app. In crypto, security is not a promise made by a company — it is a system you choose and maintain yourself.