We often see the word "trustless" applied to cryptocurrencies, which is not quite the whole story. True, they enable us to avoid trusting private, centralized banks, escrows and other third parties. But the tradeoff is that we need to trust our own tools and abilities to safeguard and manage our assets, not to mention the blockchain itself. Most seasoned participants in the space will tell you the best option is hardware wallets like the Trezor or Ledger Nano S.
One of my biggest fears was loss or fire. Unlike a leather wallet full of bills, the beauty of a digital hardware wallet is that you can make as many backups as you like. A second hardware wallet is another expense, but well worth it. It's a new world and time to take it seriously. Nothing will put your mind at ease like actually walking through the process of creating a second wallet before you actually need to. It will work exactly the same as the first and updating any balances will be equally, instantly available on both because you're not actually storing the currency in the wallet, just the private key. The currency is really stored on the blockchain itself. When you're done you can leave them in different places and not worry so much about transporting them or actually using either.
"Restoring" to a new wallet requires your 20-word passphrase from the first wallet, and is described here. https://doc.satoshilabs.com/trezor-user/recovery.html
Once you're done you can use either wallet and confirm that your balances are updated on the other, which should give you some peace of mind. Then you can put your passphrase in really deep storage like a friend's house or safe deposit box, or tear it in half and give each to a different friend, so that neither of them has access but you would.
If there's a fire at your house and you only have one wallet and the passphrase you lose everything. Now if there's a fire at your house you still have the other wallet and your passphrase. If there's a fire at your friend's house you have no more passphrase but still have two wallets, at which point you can transfer all the funds, wipe the two wallets so you have a new, working passphrase, then transfer the funds back.
You probably have an extra set of keys, so make your life easier now and make an extra wallet. The act of actually doing it will remove a lot of the fear.
First of all, the cryptocurrency hacks you've seen in the news have focused on failure points besides the blockchains themselves: exchanges, local passwords, url redirects to fake sites. The extraordinarily complex systems of mathematics, cryptography, incentives and distributed networking underpinning all blockchains and tangles have thus far proven completely secure, despite high stakes and constant attacks.
Hardware wallets work by separating the private key completely from a computer, phone or anything else hackable. It hashes the entire transaction before it ever leaves the device. Even if a hacker could intercept the signal between the device and the computer it would see nothing but the transaction hash.
A PIN that you set is required for all transactions. Every time you guess wrong the time for entering it anew increases exponentially, so for example the time delay between the 19th and 20th tries is 35 hours.
As far as keystroke loggers or spying on your clipboard memory contents, the Trezor uses the ingenious solution of displaying a different keypad every time, so an attacker would have to be physically looking over your shoulder and translating the PIN visually.
