Crypto Storage Techniques
So when it comes with storing and keeping your cryptocurrency safe. There are a few methods. I have done a few articles and videos on this concept before. I like to revisit this again. As my platform is always for the beginners into crypto. As well sometimes some of us forget some traditional methods to store our funds. So its good to go over them again.
Here are 4 methods to consider to store your cryptocurrency.
1. Online wallets are potentially the most secure and easiest way to store your Bitcoin. If you place your coins on an exchange, you are actually using a web wallet that someone else has access to (the exchange). Choose a service that isn't actually custody of your Bitcoins for protection. Blockchain.info, for example, offers a Web wallet whose private key is known to you only. It ensures they have no access to your Bitcoins at all. It also means they can not help you recover your coins if you lose your logon detail. If your machine is hacked, you might lose your Bitcoin by keylogging or attacking "man in the middle"
2. Another that way to store your cryptocurrency is through software wallets. There are a variety of these but some of them are proprietary (closed source). That's not necessarily bad, but it does suggest some element of trust. Using open-source software wallets such as Bitcoin-Qt or Electrum for the greatest security. Always encrypt and back up your wallet, and ensure that you don't lose your passphrase. If your wallet isn't encrypted, is encrypted with a poor passphrase, or your machine is hacked, access to your funds is possible for hackers.
3. Hardware wallets are among Bitcoin's most reliable form of wallet. There are various types but they usually look identical to a small USB stick or keyfob. Such wallets store in a special way your private seed that makes it inaccessible to hackers. Even with a hacked Mac, hardware wallet manufacturers boast that their wallets are free to use. Sending funds is as simple as loading a small software program on your Computer, entering transaction information and then checking the transaction by pressing a button on the device. Software wallets like the Ledger and Trezor demand that you write down a long series of random words when setting up the device. If you ever lose the device, use those "seed words" to retrieve your wallet. Make sure to keep them safe. Verify that you periodically upgrade your software, because both Ledger and Trezor have found bugs and released patches accordingly.
4. Paper wallets may be created using certain open-source programs, generating a Bitcoin address and a private key associated with it. Such information is then imprinted or copied and stored in a secure location. Some users would even go to the point of etching their private keys onto a piece of metal to ensure fire-resistance. There are tools like the CryptoSteel for those less experienced in metalworking that provide a simpler way to store your private key in a fireproof manner. Ensure that your wallet generator is open-source and accurate, and create your wallet on an offline PC. Once you produce your wallet, if your computer gets hacked and connected to the Internet, hackers will steal your private key.
Again it is very important to use some of these methods to store your cryptocurrency. Never leave your funds on an exchange. As it is never secure and funds can disappear using a third party.
I hope this is very clear and your time is good in crypto.
What do you think of these methods to store your crypto? Let’s hear what you think.
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