This is how you store and secure your digital currencies
Cryptocurrencies currently control a large majority of the financial sector, making them one of the most sought-after means of payment globally. Everyone wants to own cryptocurrency, regardless of what type is available, and because of how saturated the crypto market is. However, if you log into any crypto exchange platform, you will find many digital currencies that you can own.
Whether digital or physical, fiat currency is significantly different from cryptocurrencies, which is why crypto education is essential. Obtaining cryptocurrency is more complex than fiat currency as several factors affect ownership. Due to its popularity now, you might be thinking of owning one yourself.
The crypto industry is well saturated with options, so following the crypto recommendation in CryptoManiaks will be very beneficial. When you own crypto, keeping it safe and accessing it becomes your main priority. Therefore, this crypto guide will show you how to store and secure your digital currencies safely.
Store your digital currencies using crypto wallets
Where do you keep your fiat currency? Probably in a wallet. Well, the same goes for cryptocurrency. Bitcoin wallets store your public and private keys so you can make Bitcoin transactions. The wallet does not hold Bitcoin as they are available in the blockchain ledger, which is well encrypted, and hacking is impossible. However, it would be best to have a Bitcoin wallet to buy, sell and trade your Bitcoin, hence the importance.
As the owner of a coin, its storage is entirely up to you, and once you lose access to your currency, there’s a good chance it’s gone forever. There are various options for storing crypto, each with its own advantages.
● Storage wallet
A custodial wallet is a go-to option used by crypto exchange platforms. When you buy any cryptocurrency, whether Bitcoin, Litecoin, or Ethereum, on a Bitcoin exchange, it is usually available in a custodial wallet managed and controlled by them. That means they hold the crypto for you and to access the coin you have to create an account with them. Therefore, they are a third-party application that saves your money for you and protects it for you.
You can also decide to transfer your crypto to your wallet if you want, but this decision depends on the wallet manufacturer you use. Some only allow you to buy and sell your coins, but not transfer them.
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However, many prefer to use a custodial wallet because of its convenience; It just requires a little work on your part. Therefore, with this type of storage, you don’t have to worry about losing your crypto wallet as long as you know your account login details.
● Non-custodial wallet
A non-custodial wallet is the opposite of a custodial wallet. In this type, only you have access, which no one else has involved in the safekeeping of your coin.
● Hardware wallet
This wallet is the most common type of cold wallet storage; it is a means of storing your crypto offline. The devices, whether a pen drive, flash drive or other form of external storage configured to store crypto.
The coins are stored offline except when connected to an Internet-enabled computer to send or buy crypto. Additionally, the most common type of hard wallet you can find in the industry is Bitcoins. They are also considered one of the safest ways to store Bitcoin, but a very expensive one.
● Paper wallet
A paper wallet is another type of cold wallet storage very similar to a hardware wallet, but it is less expensive. A paper wallet involves printing your private and public keys as a character string or as a scannable QR code. From the keys you can send and receive Bitcoin. To send Bitcoin from your wallet, you need to scan the QR of your public and private keys.
Of all the cold wallet means to store your Bitcoin, a paper wallet is the cheapest. They provide the same benefits as the hardware wallet at a much lower cost.
Secure your digital currencies on crypto wallets
Knowing ways to protect Bitcoin is an important lesson that every Bitcoin enthusiast should learn. Furthermore, it is an important aspect of your Bitcoin education because cryptocurrencies are unlike fiat currencies; you can track them easily. Therefore, it is best to tick all the boxes regarding the security of your coin. Below are some ways to secure your digital currencies.
● Select a cold wallet storage method
As we said earlier, cold wallet storage is one of the safest ways to secure your cryptocurrencies. Since it is an offline storage method, it is safe from hackers. However, you need to be extremely careful with your storage device; if you lose it, your Bitcoin could be gone forever, as there is no such thing as a recovery option.
● Enable 2-factor authentication (2FA)
Adding an extra layer of security to your Bitcoin wallet will not cause you any harm. A 2FA prevents external parties from accessing your Bitcoin wallet without your knowledge. For example, if someone tries to sign in, you’ll usually receive an email or a text message with a verification code. So with this verification code they can access your account. Therefore, you need to enable 2-factor authentication in your Bitcoin-related operations.
● Change your passwords often
Your Bitcoin wallet password must be unique; it is unavailable for any account or site. It should be a strong password and should be random. The method that hackers use to try to log into your account is to use passwords that you have previously used for other profiles on your device. Moreover, most millennials fall into this category and often fall victim to these hackers.
● Avoid public wifi
When accessing your Bitcoin wallet, avoid doing so via public WiFi. It is dangerous because the system can install malware on your device. This situation then opens a backdoor to your device, which allows hackers to access your device and obtain information such as your various account passwords, web history, and much more.
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