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 means are becoming increasingly more common and crypto safety is an ever-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 of doing this.
Crypto trading guide, Trading Browser, has provided some simple tips and information on how to store cryptocurrency safely using crypto wallets and the best types to use. They aim 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 your cryptocurrency keys and allows investors access to their coins.
Wallets contain a public key (the wallet address) and private keys needed to sign cryptocurrency transactions. Anyone who knows the private key can control the coins associated with that address.
Is a wallet needed?
Wallets are essential for any investor at any experience level, although not everyone needs an offline wallet, it’s mainly down to personal preference.
Certain cryptocurrency exchanges offer coin storage options that make it easy to perform transactions, check market updates and look at balances all in one place. These options however 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 safety features and they work a little bit differently. The first type is a hardware wallet, also known as offline or cold storage.
This is a physical device much like a USB, which can be plugged in and out of a device. They are considered cold wallets as they only have a connection when plugged in.
Coins can also be stored in wallets on certain cryptocurrency exchanges, mobile apps and computer desktops too, this is known as hot storage as it always has a connection to the internet.
What is the safest option?
Offline/cold storage is typically the safest method of storing cryptocurrency, ensuring the device has no internet connectivity will keep it out of the grasp of cybercriminals. There are plenty of options when it comes to hardware wallets and they vary in price depending on security level and manufacturer.
Trading Browser has done the leg work and provided some of the best options for storing crypto safely.
A spokesperson for Trading Browser said: “These days there are multiple ways of keeping crypto safe and with constant new advancements, it can be difficult to decide which is the best option.
“We always recommend investing in a physical hardware storage device for the maximum security for cryptocurrencies.
“This is because as soon as you unplug, your coins are completely offline, meaning someone would have to physically steal the device to be able to access the crypto.
“Although this type of offline storage is the safest method, it doesn’t mean it is the only method.
“Storing coins on the desktop or on a mobile app is a great alternative, but ensure to use a strong password or other authentication methods to safeguard your coins. It’s important to note that this method will also include a transactional fee that many of the hardware wallets will not.”