# Security tips

## Exchange vs personal wallets

Exchanges go to great lengths to guarantee your funds are safe. Nonetheless, like any other **big** store of value, exchange wallets can become targets for nefarious activity. In the context of a **long-term** investment, your hard-earned cryptocurrencies will be safer in a personal wallet which you control rather than an exchange wallet.  

{% hint style="info" %}
 Funds stored on personal wallets need to be moved to an exchange wallet to be traded into fiat or other cryptos.
{% endhint %}

## A word from the experts

Below you can watch a video by **Charles Hoskinson** (the inventor of Cardano) on safety tips for keeping your crypto safe. 

{% embed url="<https://www.youtube.com/watch?v=fqrAzBAi64c&feature=emb_title>" %}

## Don't underestimate the power of paper

Cardano Wallets we will be talking about later in this guide use a multi-word **mnemonic phrase** to recover your wallet should you loose access to your device (broken, stolen, etc).&#x20;

{% hint style="danger" %}
**Never** store this mnemonic digitally.&#x20;
{% endhint %}

Store your mnemonic on **paper** (a notebook that you will not loose): make 3 copies and keep them in at least 2 separate *physical* locations.&#x20;


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