Part 7/10:
A major misconception is using cold wallets as if they were hot wallets. Engaging in frequent transactions or signing approvals in your cold wallet risks exposing your cryptocurrency to potential scams. Treat your cold wallet like a savings account—ideal for holding assets securely, not for regular transactions.
Not Diversifying Storage
Relying on a single wallet for all your cryptocurrency can be perilous. The general rule of thumb is that the more wallets you have, the less risk you incur from a single point of failure. Even if you use one cold wallet, consider diversifying your storage strategy by managing multiple seed phrases or wallets.