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Over the past few days, news broke of a critical vulnerability in Coinkite COLDCARD hardware wallets that has reportedly led to wallet drains totaling upwards of $100 million in BTC.

If you use a COLDCARD device, pause reading right now, check your wallet balances, and transfer funds to an alternative BTC wallet immediately.

If you need a fast, open-source, and easy-to-set-up mobile option to move funds temporarily or permanently, BlueWallet is a great choice.

Exploits like this are sobering and devastating for those affected, but they also serve as a crucial reminder: every form of custody carries trade-offs, and no single device or platform is immune to failure.

If you don’t know what I’m talking about AND don’t use a COLDCARD (like me, I never have)… then don’t worry! Maybe just check your BTC for practice.

A major hardware exploit can tempt people to panic-pivot their entire strategy. That’s usually the wrong move. Instead, use this event to audit your bitcoin strategy:

Verify access and balances: Make sure you can access all your wallets and confirm funds are right where they should be.
Refreshed setup: Over the weekend, I audited my own setup and generated new wallet destinations to further spread out some funds.
First-principles security: The core tenets I covered in 10 Rules to Not Lose Bitcoin still apply. Treat your bitcoin security with the same care (or more) as your bank accounts and payment apps. Know where your assets are, know how accessible they are, and be smart about when and where you talk about them.

In my Bitcoin 101 Guide, I outline three main ways to hold or gain exposure to Bitcoin. The mistake many make is assuming you must move 100% from one tier to the next as you learn more.

In reality, a mature bitcoin strategy means layering these options together to avoid single points of failure OR just picking what works best for you.

Spot ETFs & Retirement Accounts (Pure Investment): Holding a Spot Bitcoin ETF in a 401(k) or IRA makes total sense for tax-advantaged accounts. It gives you price exposure inside traditional financial infrastructure without self-custody overhead.
Exchanges & Familiar Fintech: Buying through apps like Cash App or mainstream brokerages is often where people start, and it’s perfectly fine to keep a portion there. Using familiar institutions lowers friction, and today’s traditional financial involvement offers more stability than the wild-west exchanges of the past.
Self-Custody (Hardware & Mobile Wallets): Essential for true financial sovereignty and long-term security off exchanges, but requiring diligent management of private keys and seed phrases.

When progressing down the bitcoin rabbit hole, you don’t need to throw away mainstream options. You can diversify across them.

Don’t overcomplicate things.
Don’t get overly technical.

We’ve seen what happens when exchanges fail—FTX alone wiped out over $30 billion in peak user value almost overnight. That’s why we emphasize Holding Bitcoin Off Exchanges.

At the same time, this COLDCARD exploit proves that self-custody hardware isn’t a magic shield exempt from scrutiny either.

Every single custody mechanism, whether an ETF custodian (you’re trusting them to custody the underlying BTC too), a mainstream exchange, or a hardware wallet, deserves ongoing evaluation.

COLDCARD Users: Verify your funds and migrate to a clean, alternative wallet immediately (such as BlueWallet).
Audit Your Wallets: Confirm you have active access to seed phrases, recovery backups, and login credentials.
Review Your Mix: Check your balance across self-custody, exchanges, and ETFs. Ensure no single vector holds more risk than you’re willing to bear.
Stay Quiet: Practice good operational security. Don’t announce your holdings or security setup publicly.

Stay vigilant.

Check your security today.

But, also… Do so regularly.