Top 3 Safest Ways to Store Crypto
As we’ve been in the bear market for some time now, many of us are looking to hodl. To do that, we need to make sure we keep our crypto safe. We must also remember that it’s not only about hodling, but also about being generally safe rather than sorry. There are many people out there who would love to rid you of your crypto. This is what our today’s article is about – the safest ways to store crypto.
Laws of hacker attraction
Blockchain and crypto need to be developed further and have a long way to go security-wise. Several popular exchanges and protocols have been hacked, in which substantial amounts of money were stolen.
Forget about keeping crypto on exchanges
It’s the universally known golden rule that shines bright. Don’t store crypto on the exchanges you use for buying, selling, and trading. They are about as secure as a paper wallet. Hackers love them because they have large user bases. The more popular an exchange, the more likely it is to be hacked at some point as it has more users and, naturally, more funds to steal.
#2 & #3: Using online and offline aka hot wallets
Online wallets allow you to store crypto online, obviously, meaning that Internet connection is crucial for you to be able to access your funds. Offline wallets, in other words, software, require a download and installation on your device.
Generally, online and offline wallets are designed to either store one coin or several coins. Every major cryptocurrency has a wallet designed specifically for storing its coin. The wallets that allow you to store different coins are called multi-crypto wallets.
The latter are very attractive for hackers as they may have more holes, and, most importantly, more to steal.
Online and offline wallets are good for storing reasonable amounts of crypto. If you’re planning to store a couple of bitcoins, and that’s not a reasonable amount, you need a higher level of security.
#1: Hardware aka cold wallets
Cold wallets is a general term for hardware wallets that require installation on your PC. These will definitely require more time, effort, and computer memory to set up, but keep in mind that the security of your crypto is above all.
A cold wallet is the safest as it is kept offline at all times, but is plugged into your computer whenever needed. We call them the safest because we’ve never heard about a cold wallet being hacked, have you?
To give it a wrap
Depending on the amount of crypto you want to store, choose between online, offline, and cold wallets. The more crypto you have on your hands, the higher the security level must be.
Where do you store your crypto and what is your favorite wallet? Care to share in the comments section below!
Till next week!
The CoinMetro Team