How To Store Cryptocurrency
Updated August 22, 2021
Updated August 22, 2021
Proper storage of cryptocurrency is essential to maintaining a good investment. To store your cryptocurrency, you will have to pick between cold wallets and hot wallets. They are able to store many types of cryptocurrencies. Each type of wallet has their pros and cons.
Hot Wallets are essentially wallets that are open to the internet. They also include Desktop and Mobile wallets. Since Hot Wallets are exposed to the internet, they are easily hackable. Hot wallets are also wallets where someone else manages your crypto. They give you access to your funds, but ultimately the third party has complete control over your crypto.Hot Wallets include wallets in Coinbase, Binance, or wallets in exchanges in general.
Cold Wallets are wallets that have no access to the internet. Cold wallets are the wallets where you have complete control over your assets. All wallets allow you to send cryptocurrency from one wallet to another.
After you’ve decided which type of wallet you want to store your crypto assets in, you can pick the wallet. CryptoAtlas.net does not recommend the use of Hot wallets unless you constantly trade. Hot wallets offer more risk than possible reward unless cryptocurrency trading is done successfully.
The best way to store cryptocurrencies is to store them in the best of the best cold wallets. Cold Hardware wallets are also the safest wallets. We’ve outlined to of the best cold wallets currently available The currently best cold wallets are the Ledger Nano S, Ledger Nano X and the Trezor Model T.
The least safest place to store cryptocurrency is to have it in exchanges or in software that is exposed to the internet, such as wallets on Coinbase, Binance, Kucoin, Kraken, FTX, Huobi, Bitfinex and Bithumb. Wallets that are on exchanges are hackable by thieves and criminals. Over the past, many exchanges have been hacked, and people’s cryptocurrency has been stolen. Additionally, having crypto in computers that are connected to the internet is not safe. This is because hackers can hack into computers and take your cryptocurrency. These wallets can include wallets like MetaMask, Exodus and many other desktop wallets.
Coinbase wallet is Not a cold wallet because it is a wallet that is on desktop and mobile devices that are connected to the internet. The private keys of these wallets can be stolen if a computer or mobile device are hacked. For the safest storage you can use hardware cold wallets. Some of these are the Ledger Nano S, Ledger Nano X and the Trezor Model T.There are also many other different Hardware Wallets which you can use. Trezor and Ledger both sell different hardware wallet models.