You must have heard of many cases where people lose their cryptocurrency because they haven’t secured it enough. If you don’t want to be one of these people, you should know the best ways to store cryptocurrency. So, here is a post that will help you out.
Storing your cryptocurrency is way easier than it appears for the first time. You need to choose the right and the best ways to store cryptocurrency to safely and easily secure it. Well, if you can’t sleep due to the stress of stealing your cryptocurrency, you don’t need to worry about it.
Buying and selling cryptocurrency is one thing and storing it in the right place is another. You need to have complete knowledge about the ways of storing your cryptocurrency to secure it. We will help you find the best ways to store cryptocurrency to stay away from thefts.
Here is a guide that will help you to know the best ways to store cryptocurrency. As we are aware that cryptocurrencies are exposed to cybercrimes, you must keep your cryptocurrency safe in this digital era. So, read this article and find out what are the best ways to store cryptocurrency. So, without any further delay, let us start with the post to find the best ways to store cryptocurrency.
Best Ways To Store Cryptocurrency
Here are the four best ways to store cryptocurrency. If you don’t want to lose your money, you need to know the best ways to store cryptocurrency. So, let us get a detailed look at these best ways to store cryptocurrency.
1. Custodial Wallet
Custodial wallets are one of the best ways to store cryptocurrency. It is a convenient and simplest option. It can be considered the default option to store cryptocurrency. Any third party can hold cryptocurrency for you either through cold or offline storage, hot or online storage, or a combination of both. A custodial wallet is not as secure as using your wallet, however, it is a convenient way to invest in cryptocurrencies.
2. Cold Wallet
Cold wallets are offline wallets. The most common type of cold wallet is a hardware wallet. A hardware wallet is a small device that connects to a computer and stores cryptocurrency. It connects to a computer only while sending or receiving cryptocurrency, otherwise, it keeps funds offline. Offline storage of cryptocurrencies is considered the best option in terms of security. Many platforms use it as a way to protect most of their crypto assets.
3. Hot Wallet
Hot wallets are applications that store crypto online. It is available as a desktop or mobile app. You can enjoy control over your crypto assets with hot wallets. You can easily use them and send or receive cryptocurrency using these wallets. A hot wallet comes with a recovery phase just like a hardware wallet. It can be used if you lose access to hot wallets.
4. Paper Wallet
Paper wallets or physical wallets are other types of cold storage. It is a printout of private and public keys. These keys are how one makes crypto transactions. Users can receive cryptocurrency with a physical wallet using the public keys. You need to scan the private and public keys for sending cryptocurrency from the wallet. However, they are considered less user-friendly crypto storage.
As we have gathered information related to the best ways to store cryptocurrency, let us move further to find the meaning of a crypto wallet.
What Is A Crypto Wallet?
Crypto wallets are software programs designed to store public and private keys, interact with several blockchains, send and receive digital currency, and monitor its balance. If you want to manage your cryptocurrency assets and keep them secure, you need to have a crypto wallet. Keeping your crypto assets in a crypto wallet is one of the popular and best ways to store cryptocurrency.
We can say that a crypto wallet is something just like a Bank is for real currency. Many cryptocurrency wallets are available but the main distinction is whether they are cold or hot.
A hot wallet is an online wallet that can be used on internet-connected devices such as smartphones or computers. It is one of the most convenient and best ways to store cryptocurrency. These are usually designed to keep a small amount of cryptocurrency. Since it is an online method, there might be chances of losing cryptocurrency. It never stores your cryptocurrency on any exchange as it is not a private key holder.
Another form of crypto wallet is a cold wallet. It is an offline wallet. It is the safest form to store cryptocurrency because it is not connected to the internet through any device. Hence, the chances of online fraud or theft are also fewer as the private key and address are not connected to the internet. You can store yours offline in these wallets. One can receive funds at any time but cannot transfer them out. They are good for the long-term holding of cryptocurrency.
It is time to check out the most popular and the best wallets to store cryptocurrency and avoid any fraud or theft.
Best Wallets To Store Cryptocurrency
Here are the best wallets where you can store your cryptocurrency safely. Let us have a look at this list.
- Trust wallet
You can choose any of these wallets to store your coins safely.
This post contains all the relevant information related to the best ways to store cryptocurrency. You need to choose the right wallet to avoid any theft. If you choose the wrong wallet to store cryptocurrency, you may end up losing all your money. You can tell us if you are aware of any of the best ways to store cryptocurrency by commenting below.
Frequently Asked Questions
Q1. Is It Important To Store Crypto In A Wallet?
A. It is not necessary to store your cryptocurrency in a wallet. However, if you choose to store your crypto in a wallet, it can keep your cryptocurrency safe.
Q2. What Are The Safest Crypto Wallets?
A. Many wallets are available to store cryptocurrency. Some of the best ones are Exodus, Coinbase, Electrum, Mycelium, and many more.
Q3. Is Coinbase Wallet Safe?
A. Yes, the Coinbase wallet is among the safest crypto wallets worldwide. It is preferred by many traders around the world.
Q4. Is It Better To Hold Or Sell Crypto?
A. If the price of the crypto has dropped and you feel that it is no longer a good investment, you can sell it. However, if you hold a cryptocurrency when the prices are rising, you might hold it for some time to earn higher profits.