Custody Risk Evaluator
Measure in seconds your portfolio vulnerability to exchange insolvencies, regulatory account freezes, or Web3 browser extension attack vectors.
Measures the likelihood of loss due to CEX bankruptcy, hacking, or malicious contract signing.
Third-party dependent funds (without your private keys, they are not your coins).
Security Recommendations
- āøMore than 70% of your capital is exposed in CEXs. Consider diversifying into cold self-custody.
- āøYou have $4,500 USD in self-custody without a Cold Wallet. Hot wallets (browser extensions) are vulnerable to phishing and malware.
Protect your funds with Tangem Wallet
Ultra-secure self-custody in a card format without vulnerable paper recovery phrases. EAL6+ certified military-grade encryption.
Why Is It Vital to Audit Your Crypto Custody?
The famous motto "Not your keys, not your coins" highlights the fragility of capital in digital environments. Not all storage methods provide equal protection:
Exchanges (CEXs)
Your private keys are held by a third party. You are exposed to insolvencies (e.g., FTX, Mt. Gox), preventive KYC/AML account freezes, and regulatory restrictions.
Hot Wallets (Web3)
You hold the keys, but the wallet remains connected to the internet. Vulnerable to screen-scraping malware, wallet drainers on malicious dApps, and browser extension phishing.
Cold Wallets (Hardware)
The gold standard in security. Private keys never leave the secure chip (EAL6+). Transactions are physically signed offline, isolated from cyberattacks.
Frequently Asked Questions about Crypto Custody
Clear up doubts regarding fund safety and how to protect your wealth.
What is the real risk of leaving funds on an exchange like Binance or Coinbase?ā
By keeping funds on a CEX, you technically hold an IOU credit, not real on-chain coins. The primary risk lies in custodian insolvency, unexpected account freezes due to compliance requirements, or withdrawal halts during extreme market volatility.
Is MetaMask or Phantom sufficient to protect my core savings?ā
Not for significant amounts. Hot Wallets are great for daily DeFi interactions or NFT trades with working capital, but storing core savings in them is risky: if malware infects your device or you sign a malicious transaction, your funds can be drained instantly.
Why do we recommend Tangem as a Hardware Wallet over traditional models?ā
Tangem removes the most common weak point in crypto security: paper seed phrases vulnerable to fire, theft, or misplacement. It operates via encrypted EAL6+ NFC cards that sign transactions by tapping against your smartphone without ever exposing private keys.
Related Guides & Analysis
Recommended resources āHow Much Money Have You Given Away in Gas? How to Audit Your Wallet Financial Health
Learn to calculate historical gas paid on MetaMask, recover on-chain efficiency, and detect money leaks from failed transactions.
Unlimited Token Approvals: The Security Risk Draining Wallets and How to Revoke Them
Learn how to revoke smart contract permissions on MetaMask, remove unlimited Token Approvals, and protect your assets from DeFi exploits.
CEX vs Cold Wallet: At What Portfolio Size Should You Move Funds Off Exchanges?
Discover the best cold wallets for storing crypto and the portfolio threshold where investing in hardware wallets becomes essential.