Finances

What Is The Most Secure Method For Storing Cryptocurrencies 

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Written by Michaell Walling

Because of the rise in crypto value, numerous pirates are emerging with tricky procedures to steal crypto assets. Various users lost their cryptocurrencies because of phishing, cyber storms, stolen key papers, and many more. Hence, it is crucial for the owners to store the crypto coins in the safest way possible.

Storing cryptocurrencies is quite complex as they are completely decentralized and have separate public and private keys. If you are eager to find more about crypto blockchain security, make sure to visit techbullion.com. Below we will talk about the safest methods to store crypto coins.

Cold Wallets

One of the best-secured choices to store cryptocurrencies, which is cold wallets. In general, the cold wallets does not have any contact with the internet, and due to that, it has a lower risk. In other words, hardware or offline wallets also come under the cold wallet category.

These cold wallets will save the owner’s address and private key somewhere that does to have any connection with the internet. They include some software that functions similarly and allows the owner to see their portfolio without creating any threat for the private key. In cold wallets, it is best to store the bulk of your crypto coins.

Hot Wallets

Hot wallets are also safe for storing cryptocurrencies in small quantities. In hot wallets, it is better to keep only a tiny or medium quantity of crypto assets for trading purposes. If the crypto coins are running out, you can bring a refill from the cold wallets. Generally, this kind of wallet can be kept safe digitally on your smartphone.

These wallets must be connected to the internet, and due to that, it is a little risky to store heavy amounts of crypto coins. The hot wallets can be assessed anytime because they are connected to the internet and are user-friendly. However, hot wallets have high chances of safety threats and assaults by cyber pirates, and there is a risk for the owner’s privacy and crypto safety.

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What Are The Types Of Wallets and Which Are Safe To Store Cryptocurrencies?

Here we will explain the different types of wallets. In addition to that, we will discuss if they are safe for storing crypto coins or not.

Paper Wallet

A paper wallet comes under the cold wallet, and you can activate it on specific websites. To be precise, the most secure method to keep cryptocurrencies offline is through paper wallets. It will develop particular public and private keys, and you can print them on paper.

There is only one way to open the paper wallets, which is that key paper. Hence, several crypto owners maintain a few duplicate or laminated documents of that paper and conserve them in private safes or banks. These paper wallets do not retain any complementary user interface. They have only printed paper and blockchain.

Hardware Wallets

Next, we have another protected way to keep crypto coins, which is via hardware wallets. These wallets are generally a USB drive tool that can keep the private keys of the owner safely. They would not get affected by any virus spread in the stoner’s desktop or own system as the private keys do not maintain any contact with the weak software or network-connected desktop.

A hardware wallet functions by producing a batch of private keys, and it is your responsibility to keep it safely offline. This wallet is protected with a four to eight-digit PIN. When there are too many failed entry attempts, the machine will erase to avoid physical robbery.

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Cloud Wallets

Storing small proportions of cryptocurrency in cloud wallets is safe. With a cloud wallet, you can access your assets from any kind of computer or gadget from anywhere. These wallets are known for their convenience. However, the cloud wallets will store the private keys online, which could be monitored by other third parties. Due to that, they have a high risk of theft and cyber attacks.

Non-custodial online wallets are a better option in a cloud wallet when it comes to safety. You can get entry to the wallets through the web and mobile apps. Besides that, the service provider or the platform does not have any permit to know your private keys. In several instances, non-custodial online wallets belong to the exchange platform. Plus, it allows you to buy and sell cryptocurrencies safely and securely.

Software Wallets

Here is another type of crypto wallet, which is a software wallet. These wallets need to be installed and launched on your mobile phone or computer. Software wallets are under the hot wallet category. These smartphone and computer wallets have high-end security. But, they will be highly exposed to malware attacks, hacking, and other cyber attacks. Because of that, you need to make sure to keep your devices free from malware.

Compared to computer wallets, mobile phone wallets are quite easy and small but, it is easy to control the crypto assets from both these wallets. Plus, a few software wallets let you get access to crypto coins through numerous gadgets. Hence, you can open your wallet on your computer, mobile phone, and other devices at the same time.

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Tips To Reduce The Risk Of Losing Cryptocurrency

Here are some extra suggestions, which you can use to lessen the danger of losing your crypto coins:

  • Make sure to login into only secure websites using a credible HTTPS certificate.
  • Be cautious of phishing sites while connecting to online wallets or exchanges.
  • Never store all the cryptocurrency in a single wallet.
  • While sending crypto coins, check the transaction address and other details twice.
  • Keep all the accounts secured with two-factor authentication.
  • Do not connect to your trading account or wallet from a public WiFi network.
  • If you possess a static IP address, use it while accessing crypto assets and accounts, and do not let others use it.

Our Verdict

You need to get a better understanding of how to store the cryptocurrency securely. If not, your crypto assets could get stolen by hackers, frauds, and various other phishing attacks. Keep in mind the above information about wallets and make sure to store them safely.

About the author

Michaell Walling