Where And How To Store The Cryptocurrency

If this is a question that you are interested in, our article will be helpful. So, let’s talk about what your options are and what are their specifics.

How to keep cryptocurrency safe?

If this is a question that you are interested in, our article will be helpful. So, let’s talk about what your options are and what are their specifics.

How To Store Cryptocurrency in Online Wallets

Online wallets are usually called hot wallets. These wallets are connected to the internet. It makes transactions easier because there’s no need to do additional steps to make a transaction. This way it’s very convenient to use online wallets, but at the same time risky. The problem is that hot wallets are vulnerable to hacker attacks and other malicious activities.

So what are the benefits of this type of wallet?

Easy access: No need to lose your time connecting the wallet to a different device to get access to your funds. Online wallets provide you with unlimited round-the-clock access to all the necessary tools. Use it from almost any internet-connected gadget.

Simplicity: User-friendly interface and easy installment could be understood even by inexperienced beginners. 

Flexibility: In most cases, users can choose from a great variety of coins available. many services are constantly developing their features.

Low cost: Hot cryptocurrency wallets are either free or take a fee when making transactions.

Custody: Most web wallets are custodial wallets. It’s a good choice for you if you are okay with trusting your keys to third-party custodians. This way, you are less likely to lose your keys. 

How To Store Cryptocurrency On The Stock Exchanges

Stock exchanges often offer their users internal hot wallets. With its help, users are able to not only trade their cryptos there but also store them there. So, it’s kinda convenient to have everything in one place.

Nevertheless, it’s not recommended to store your money there for a long time. As a hot wallet, it’s still vulnerable to hacker attacks and viruses. Exchanges are often hackers’ targets as they hold billions of dollars worth of currency. Aside from hacks, there are cases of exchanges losing or mismanaging their users’ funds. 

To lessen your risk of becoming one of the victims, consider choosing a reputable exchange with a set of various tools for protection. This way you significantly reduce your chances of experiencing some type of cyber-attack.

Here is a list of what to look for when choosing an exchange, if you plan to keep money there:

HTTPS certificate: Secure platforms always have one. In a browser, it displays as a lock symbol in the address bar. Be sure to use only protected exchanges.

Password: If an exchange asks you to set a better password, it is a good exchange. The exchange will require you to set a password that includes regular and capital letters, numbers, and symbols.

Two-Factor Authentication: The platform should have this security method, otherwise it’s insecure. It’s better to set an authenticator app as one of the options, but consider avoiding SMS authentication, because hackers easily counterfeit phone numbers.

Cold Storage: It’s a good sign if an exchange stores the major part of funds offline. Stealing money from a cold wallet is a much more complicated thing to do.

Whitelist IP and Withdrawal Addresses Feature: Whitelisting specific IP blocks logins from other locations. By enabling the whitelisting addresses feature, you will be only able to withdraw money only to previously approved addresses.

Insurance: Some exchanges insure funds from theft. Sadly, it rarely applies to the individual accounts, but to the exchange itself.

Some crypto payment gateways also offer internal wallets. The rules are pretty much the same – safety first. We got your back and have a solution in our mind. Cryptomus is a cryptocurrency gateway with superior safety tools. Try them yourself!

How To Store Cryptocurrency In Offline Wallets

A cold wallet is made for storing cryptocurrency offline. These wallets are not connected to the internet, that’s why they are not so vulnerable to cyber attacks. Cold wallets are often used by cryptocurrency exchanges and companies, as well as by individual investors. 

You are unable to restore your funds if your wallet is stolen, that’s why you need to think about your crypto’s safety first. 

All crypto wallets provide some kind of key protection for their users. Talking about cold wallets, they isolate your private keys from the internet, so currently it’s the safest way for storing your keys because it’s impossible to hack.