Experts are advising crypto investors on the safest ways to store cryptocurrency to avoid potential scammers. Stories involving Scammers Draining Crypto Wallets Through Malware and other media are becoming more common and cryptographic security is a growing issue within the space.
Many investors often have the shared struggle of finding a way to keep cryptocurrencies safe, but luckily There are several ways to do it.
The cryptocurrency trading guide, Trading Browser, has given some simple tips and information on how to store cryptocurrency safely using cryptocurrency wallets and the best types to use.
Its goal is to provide investors with the knowledge to keep their assets safe and create a less intimidating environment for potential investors.
What is a crypto wallet?
A cryptocurrency wallet is a device or program that stores calls”access keys to cryptocurrencies” and allows investors to access them to carry out operations.
The wallets contain a public key (the address of the wallet) and the private keys needed to sign transactions of cryptocurrencies. Anyone who knows the private key can control the associated coins to that address.
Do you need a wallet?
Wallets are essential for any investor at any level of experience, although not everyone needs an offline wallet, it is mostly down to personal preference.
Certain cryptocurrency exchanges offer storage options of currencies that make it easy to transact, check market updates, and view balances, all in one place. However, these options may incur a percentage transaction fee, so for long-term investors, this may not be the best option.
What are the different types of wallets?
Crypto wallets have different security features and work a little differently. The first type is a hardware walletalso known as offline or online storage cold.
This is a physical device much like a USBwhich can be connected to and disconnected from a computer. They are considered cold wallets since they only have connection when they are connected.
Coins can also be stored in wallets at certain cryptocurrency exchanges, mobile apps and desktop computersthis is known as storage in hotsince you always have an Internet connection.
What is the safest option?
Offline/cold storage is usually the most secure method to store cryptocurrency, and making sure the device doesn’t have an internet connection will keep it out of the hands of cybercriminals. There are many options when it comes to hardware wallets and their price varies depending on the level of security and the manufacturer.
A spokesperson for Trading Browser said: “These days, there are multiple ways to keep cryptography secure and with constant new advancements, it can be difficult to decide which is the best option. We always recommend investing in a storage device physical hardware for maximum security for cryptocurrencies. This is because as soon as you go offline, your coins are completely offline, meaning someone would have to physically steal the device in order to access the crypto.“.
“Although this type of offline storage is the most secure method, it does not mean that it is the only method. Storing coins on desktop or in a mobile app is a great alternative, but make sure you use a strong password or other authentication methods to protect your coins. It is important to note that this method will also include a transaction fee that many hardware wallets will not.”, he added.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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