Since we are living in a digital age, many personas or businesses are interested in upgrading to buying and selling digital assets. Without any doubt, the commonest digital assets are cryptocurrencies. We can see that a lot of people got interested in these in the last couple of years after some of their prices have skyrocketed.
Of course, the most notable ones are BTC and ETH. So, we can say that looking for an e-wallet is the safest way you can store these. Sure, we are talking about one of the most critical aspects of participating in the crypto market. Despite all the information and news about these, we can see that many people are still not aware of what are the safest ways to use this concept.
It makes perfect sense to see that many people are still unsure about the whole concept, but we are pretty sure that they will all disappear shortly. At the same time, there are a lot of uncertainties towards storing all these assets in the best possible way. Now, we would like to talk about how storing these should be handled in the safest possible way. Without further ado, let’s get started.
What Kind of Wallets are There?
When discussing e-wallets, it needs to be said that these can be split into two main categories. We are talking about cold and hot storage. The difference is that hot ones have an internet connection. At the same time, cold ones are not always connected, but they still require a connection when making a transaction. In case you are looking for a wallet that’s simple and doesn’t require a lot of your time, be sure to take a look at Fireblocks. Let’s describe some of the most important ones.
Hot Wallets
Let’s take a look at hot storages.
Online
Online storage is a web-based crypto wallet, which makes it much easier for traders to have a much more straightforward procedure.
Mobile
Mobile storage is a smartphone app that will provide you with a chance to store, sell, buy, receive or send digital currencies from your device.
Hybrid
Hybrid is a combination of the previous two types.
Desktop
The first type of storage introduced to the traders was desktop storage. Those people who are present in the market for a long time certainly remember it.
Exchange
Exchange storages are linking accounts to the crypto exchange.
Cold Wallets
Now, let us point out the features of cold storage.
Paper
Paper storages contain their private keys. They are paper printouts that are made of QR codes.
Hardware
Hardware storage is a physical device where all the private keys are held. They are considered to be the best ones against any kind of foreign influences.
How to Store Cryptos Safe?
Sure, we are fully aware that we cannot control the price of crypto and its movements on the market. However, we can prevent any potential losses caused by bad wallet management. There are a couple of things you can do to make the whole process even more secure. Now, we would like to point out some of these.
Back-Up a Wallet
It doesn’t matter what’s storage you are using, it is of the utmost importance to use a backup to increase the level of security. That way, you will be able to access it even in cases when storage is damaged or lost. Just imagine it being damaged or lost, and you haven’t performed the backup procedure. Surely, it can leave you with a lot of holes in your finances, right? Therefore, you need to make sure you do it frequently. Forgetting this part of the process can cost you dearly sometimes.
Use Cold Storage
Any investor who considers himself serious should use cold storage for keeping their cryptos as safe as they can be. In case you have more than just a few dollars in your wallet, you will certainly need to use either paper or hardware storage to avoid all the unpleasantries. The worst thing that can happen is that the address you are sending coins to can be hacked, and coins redirected to a completely different address. Sure, this is just plain stealing of your coins and there’s so little you can do about that. Therefore, you should prevent it at all costs. The cold storage is offline most of the time, so you will be able to protect yourself from all outside influences.
Don’t Share Passwords with Anyone
Even though it can be said that not sharing your passwords with anyone is common sense, many people still do it, for a variety of reasons. So, it’s no surprise that this kind of danger is still very much alive in the cryptocurrency community. With someone having the access to your accounts and storage, the chances that something will get stolen get pretty high. So, you should avoid it at all costs.
Follow Basic Security Procedures
Last but not least, we would like to point out that executing trades and managing your digital currencies comes with some basic security measures. We know how it sounds, but we assure you it’s nothing that you should be afraid of. Install the best possible anti-virus that can provide you with the best possible security. Furthermore, you should avoid clicking on some links sent from unknown sources and senders.
In Conclusion
As you are probably aware, the world of digital currencies is still full of unknowns for a lot of people. Therefore, learning a thing or two about how you can make the most out of the security. Here, we’ve provided you with some of the most important tips you can implement to make it as good as it can be. Sadly, we can see that a lot of people take these things for granted.
So, it’s no surprise that there are so many problems in this world, even in this day and age. So, we can see that having the best possible security is an absolute must. We hope you’ll find this article of ours useful.
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