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Tips on How to Safely Store Cryptocurrency

by Roveen Anyango
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Cryptocurrency has become a way of making investments that is fast picking up pace. The digital payment system enables people to send and receive payments from anywhere in purely digital entries.

However, as an investment, cryptocurrency carries incredible risks, including falling into a scam. And even worse, despite the security features of the blockchain, you can still get hacked and lose your cryptocurrency.

So, how then can you safely store your virtual currency to avoid losing them? Through using a cryptocurrency wallet.

A cryptocurrency wallet is a software program that is designed for the storage of your public and private crypto keys, to send and receive the digital currencies and interact with various blockchains. The crypto wallet helps you manage your cryptocurrency safely.

There are several crypto wallets that you can use to store your cryptocurrencies.

Hot wallet

A hot wallet is an online cloud storage system that is connected to the internet and allows you access to your cryptocurrency at any time. However, since the wallet is not a private key holder, it is only useful if you intend to keep the cryptocurrency for a short time before swapping with another crypto.

Also called a cloud wallet, the hot wallet provides convenience, but since your private keys are stored online, third parties can manipulate them.

However, one can still get a cloud wallet that is much safer. This is the non-custodial online wallet.

The non-custodial online wallet is accessible through the web and through apps, but it does not give your service provider access to your private keys. Examples of this type of wallet are Bitwala, LocalCryptos, and Crypto.com Defi Wallet.

Cold wallet

The cold wallet is an offline cryptocurrency and is considered the safest way of storing your cryptocurrency. Since it is not connected to the internet, there are fewer chances that accidents will occur, leading to you losing your precious coins. This is because the private key and the address are not connected to the internet.

Your cold wallet can be a physical device called the hardware wallet. These types of wallets eliminate every risk of your crypto being compromised. It can be considered safer than hot wallets or software wallets.

Examples of such wallets include Ledger, Keepkey, and Trezor.

Storing your cryptocurrency safely means that you stand a better chance of reaping from them. So, don’t become an easy target for unethical crypto miners.

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