30 June, 2020 

How To Store Cryptocurrency In a Proper Way

At the dawn of the development of cryptocurrencies, there was no other way to store your cryptocurrency anywhere other than online exchanges. Now the times have changed — and there are many other options for storing your digital money, much better equipped with security
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How To Store Cryptocurrency In a Proper Way

Before thinking about the best option for storing cryptocurrencies, it is worth deciding on what quantities you plan to store it and how to use it. Do you want to keep her or trade? Pay for goods or services? Depending on how you are going to use your cryptocurrency, it is worth choosing the option on how to store your cryptocurrency.

There are various cryptocurrency wallets, virtual and physical. Here are what they are and how they differ from each other in terms of security and price.

Exchange's Wallet

Such a wallet is convenient in that it provides quick and convenient access to your cryptocurrency. However, you cannot call it safe — crypto exchanges are often attacked by hackers who steal cryptocurrency from user accounts. Experts do not recommend holding serious assets there and advise if you use such wallets, then with small amounts that you do not plan to keep there for a long time.

Online Wallet

Online wallets have already learned to crack. They are better protected than wallets on exchanges since, without a client’s participation, no payment can be made. However, with the loss of a key, you will not be able to regain access to your cryptocurrency. Therefore, such wallets are also not suitable as the main means of storing assets.

Hardware Wallet

This is a physical gadget on which your funds are stored. At the moment, this is the most reliable option for the long-term storage of your digital assets, yet there are nuances here. Such wallets are not cheap, and if the one is stolen, it is technically possible to hack it. But if you keep it and your access keys in a safe place, the risk will be minimized.

Local-Storage Wallet

This application is for a smartphone or PC, which can only be used if you have an Internet connection. To use it, you need to fully download the blockchain part to the device, and it takes up a lot of space. And if you lose your device, you can return the money.

Paper Wallet

This is also a physical medium, which is a printout with the data necessary to access your cryptocurrency. It costs a lot less than hardware media, but it is also less convenient to use.

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So, if your goal is the long-term storage of cryptocurrency, you better choose a physical medium or a local wallet for this. If you perform crypto trading and you need constant access to the exchange of small portions of cryptocurrencies, you can use virtual wallets. Do not forget to use only services verified by a company with a good reputation in the cryptocurrency market, so as not to become a victim of scammers disguising themselves as such. This applies to both exchanges and online wallets, as well as special applications.

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