If you are interested in buying cryptocurrencies, one of the most important things that you must invest in is making sure that you keep them safe. when the number of hackers and scamming that have surrounded the market for cryptocurrencies, you have to make security your number one priority.
When it comes to storing your bitcoins you need to look for a secure wallet that you can trust with your eyes closed. While they have become extremely popular being one of the most hassle-free ways of making payments or as a long term investment, you need to keep them safe at all times.
Following are some of the most important and ways to store your cryptocurrencies:
Non custodial wallets
These are wallets where you do not leave your precious Bitcoins at the hand of some third party. This wallet allows access to your cryptocurrencies only to you.
When choosing a non custodial wallet makes sure that they provide you exclusive access to your digital currency under easy to operate. You can even create a backup for your wallet on your Google drive or your iCloud account. This is the best way to make sure that your digital currencies are absolutely safe even if you misplace your device.
Custodial Wallets
Custodial wallets are those wallets where you get access to your coins through a third party. Most of the cryptocurrency exchanges that provide wallets are basically custodial wallets.
While they are extremely popular, they are not safe at all when you want to keep your cryptocurrency in a wallet. You essentially provide access to a third party to your cryptocurrencies which can easily be hacked by scammers and you can lose out on your precious assets.
Paper Wallets
A paper wallet is basically a kind of wallet that is physical in nature where you can store your digital currencies far removed from the internet. It Is similar to an offline hard drive where you can store your coins digitally.
However, one of the biggest advantages of a paper wallet is that it can be easily produced with the help of a printer and a piece of paper.
They consist of two QR codes. The first one is for you to make deposits and the other one is a store for your private keys. You can simply scan these codes when you want to access your Bitcoins.
However, you need to keep this piece of paper in a very safe location because if anyone gets success with these QR codes they get their hands on all your digital assets no question asked.
There are several other risks associated with a paper wallet as we can be easily destroyed or even misplaced which means that you lose access to your wallet.
Hardware Wallets
This is another option with which you can store your cryptocurrencies far removed from the internet. This is another physical location where you can reliably store your digital currencies.
Hardware wallets are very similar to a physical drive where you can store your cryptocurrency so that they remain offline and away from any threats that are posed by hackers.
Whenever you access your wallet to receive your send Bitcoins it automatically sends you a prompt to back up the transaction. This backup is a string of words and letters which is known as recovery seed.
Even if your hardware wallet is somehow stolen or misplaced, you will be able to access information and your wallet because of this backup that you must never ignore. The recovery seed hence becomes a tool that you can exclusively access to find your digital currencies.
Not only are hardware wallets more durable than paper but also provide an added advantage of storing Bitcoins in a physical location that is away from the internet.
Conclusion
With the help of amazing sites you can get your hands on digital assets very easily. Make sure to take the necessary steps to keep cry or currencies secure and safe.
Always keep the passwords that are related to cryptocurrency and more importantly the recovery seed close to your and never give this sensitive information out to anyone.
