19Jun
Are your crypto assets truly secure? As cryptocurrency adoption in Singapore hits new highs, so do the risks. Investors are now prioritising offline storage security for digital assets, due to its increased safety from hacking or other cyber threats.
This guide explores the best ways to store crypto wallets in Singapore, focusing on secure, physical storage solutions like STARVAULT’s automated safe deposit boxes.
Why Cryptocurrency Wallet Security Matters
In 2024 alone, global cryptocurrency thefts reached USD 2.2 billion. In Southeast Asia, authorities, including the Monetary Authority of Singapore (MAS), have issued frequent advisories on wallet security amid a rise in scams. Protecting your crypto wallets—including hardware devices, private keys, and seed phrases—requires secure physical storage solutions.
Key Risks to Crypto Wallets
- Hacking: Software wallets on phones or computers are vulnerable to malware and phishing attacks, especially if internet-connected.
- Hardware failure/loss: Physical devices are susceptible to theft, loss, or damage when not properly stored.
- Human Error: Forgetting passwords or misplacing seed phrases can permanently lock you out of your crypto assets.
To mitigate these risks, investors need a reliable storage strategy that combines digital and physical security. That's where STARVAULT’s safe deposit boxes offer a unique advantage.
Hot vs. Cold Wallets: What’s Best For You
Before exploring storage solutions, let’s review the two main types of crypto wallets and their security needs.
Hot Wallets
Hot wallets, or software wallets, are internet-connected and designed for frequent trading activities. Common examples include mobile applications (e.g., Trust Wallet) and exchange-based wallets (e.g., Binance). These wallets are convenient for transactions but present increased vulnerability to being hacked. Hot wallets are suitable for small, regular cryptocurrency exchanges rather than long-term asset storage.
Cold Wallets
Cold wallets operate offline, providing better security for long-term asset storage. Two primary types exist: hardware wallets (such as Ledger Nano X or Trezor) that store private keys offline, and paper wallets with printed QR codes or seed phrases. Cold wallets typically require secure physical storage to prevent loss or theft. Safe deposit boxes offer a reliable solution for protecting these devices and respective backups.
Where to Store Crypto Wallets in Singapore
Investors in Singapore use many different types of storage for their cryptocurrency. Let's look at the most secure options, focusing on physical storage solutions for cold wallets.
1. At Home
Storing hardware or paper wallets at home is common but risky. Home safes may deter casual thieves, but they’re often not fireproof or flood-resistant. Thieves can also physically carry away these safes. While rare in Singapore (854 cases in 2023 as reported by SPF), residential burglaries remain a concern for high-value assets.
- Pros: Immediate access with no recurring costs
- Cons: Vulnerable to theft or home disasters (e.g., fire, flood)
2. Bank Safe Deposit Boxes
Traditional bank safe deposit boxes offer better security options than home storage. However, banks usually operate on office hours, which may potentially delay access to your funds during holidays or emergencies. Furthermore, a high demand for deposit boxes at banks like UOB or DBS may limit their availability.
- Pros: Highly secured facilities, Reputable organisations
- Cons: Restricted access hours, long waitlists, and higher fees
3. Private Safe Deposit Boxes (e.g., STARVAULT)
Private safe deposit box providers like STARVAULT combine cutting-edge security with unparalleled convenience.
STARVAULT’s facilities are perfect for crypto investors, offering a secure home for hardware wallets, paper wallets, or private key backups. Unlike banks, STARVAULT’s automated system ensures instant access, presenting an ideal cold storage solution to those who value both security and flexibility.
- Pros: Maximum security, 24/7 access, full control of stored assets
- Cons: Requires a rental
Storing hardware wallets or seed phrases in STARVAULT safe deposit boxes combines offline cold storage security with professional vault protection. This approach provides enhanced security for high-value cryptocurrency assets.
4. Digital Custodial Services
Custodial services, such as Coinbase and Gemini, store cryptocurrencies on behalf of users. These platforms offer convenience but introduce counterparty risks. Users may lose assets if custodians face security breaches or insolvency. While MAS regulates certain custodial services in Singapore, operational risks remain.
- Pros: Easy to use, no physical storage needed on your part
- Cons: Lack of control and reliance on the stability of custodians
Tips for Securing Your Crypto Wallets in Singapore
Investing in cryptocurrency requires conducting your due diligence to ensure that your assets are secured.
Here are some best practices to maximize security:
- Use Hardware Wallets: Store long-term cryptocurrency in hardware wallets (e.g., Ledger, Trezor) bought directly from manufacturers. Keep seed phrases offline in a safe or metal backup, not digitally.
- Enable 2FA: Use authenticator apps (e.g., Google Authenticator) for 2FA on wallets and exchanges. Avoid SMS-based 2FA to prevent SIM swapping attacks.
- Avoid Public Wi-Fi: Don't access wallets on public Wi-Fi (e.g., Wireless@SG). Use a VPN for secure connections.
- Secure Private Keys: Store seed phrases in multiple offline locations (e.g., STARVAULT or a bank safe deposit box). Use durable materials to withstand Singapore's humidity.
- Choose Reputable Platforms: Use MAS-licensed exchanges (e.g., Coinhako, Crypto.com) or trusted wallets (e.g., MetaMask, Ledger). Verify licenses on the MAS website.
- Beware of Scams: Avoid phishing links and fake giveaways. Verify URLs and report suspicious activity to the Singapore Police Force.
- Diversify Wallets: Use hot wallets for small transactions and cold wallets for savings. Limit online exposure.
- Update Software: Keep wallet apps updated, but review updates manually. Monitor accounts with blockchain explorers.
- Follow Travel Rule: Provide accurate beneficiary details for transfers on MAS-regulated platforms to comply with AML/CTF rules.
- Stay Informed: Follow MAS, SPF, and trusted crypto news (e.g., Fintech Singapore) for security and regulatory updates.
Secure Your Crypto with STARVAULT
Securing crypto wallets requires a robust storage solution. STARVAULT offers automated safe deposit boxes in Singapore with multi-layered access control, professional fire protection systems, and 24/7 availability for cryptocurrency storage needs.
Protect your digital wealth the smart way. Book an appointment today for a facility tour or secure your crypto now at STARVAULT.
