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Many users overlook the importance of using a passphrase to enhance wallet security. A passphrase, which adds an extra layer of security to your seed phrase, can help create hidden wallets that remain inaccessible unless both the seed phrase and passphrase are provided. This adds a crucial layer of protection, especially as passphrases can be generated without limit for one seed phrase.
Storing Crypto on Exchanges
One of the biggest mistakes is keeping crypto assets on exchanges. While exchanges are suitable for buying or selling cryptocurrencies, they should not be a long-term storage solution. As custodial wallets, exchanges control access to your crypto, meaning they can lock your account or freeze your funds without notice.