The stories about people who have bought cryptos and lost them due to the hackers’ attacks are common nowadays.
So if you are new to BTC, you must be concerned about the security issues and if you already own some, you must be interested in upgrading your storage. We have listed some simple and efficient ways to help you keep your coins as secure as possible.
Wallets: how do they work?
First and foremost, you have to realize that you won’t be storing a coin itself. As we all know, crypto coins are digital: they are just encrypted addresses on the blockchain. As an owner, you have a key that unlocks the coin’s location and this is exactly what you need to protect at all times.
There some options to choose from and your decision will mostly depend on the way you are planning to use your coins and the level of safety you would like to reach. So let’s take a closer look at some of them.
There is a great amount of services that offer convenient and simple online wallets for cryptocurrencies. By the way, most of them are free. These wallets are all cloud-based and you can access your money from any device whenever you like if you remember a password. Thus, you can easily download and setup one of them to receive and spend coins.
This option is not the safest one, because you store your key in the cloud storage and therefore the wallet host must be reliable. The leading wallets offer additional security features and basically can be used for small amounts of cryptocurrency. However, we don’t recommend you to store your coins in the online wallets attached to trading platforms and exchanges – they become hackers’ target more often than the private ones.
The simplest wallet one can imagine is a piece of paper with a private key printed on it. No kidding, one of the most secure ways to store BTC is getting a paper wallet with all necessary information. The best thing about this option is that is absolutely safe, since it is not connected to the Internet. Just keep it away from fire and water.
There are services like BitcoinPaperWallet or WalletGenerator that allow you to create addresses and print your wallet with your printer. You will be able to send BTC on that address, give them away and store them safely.
There is no safer option than storing your coins in the offline hardware wallet. This excludes any hacker attacks and phishing scams, so hardware wallets are absolutely perfect when it comes to the security issues.
Hardware wallets are USB drivers that can be connected to your laptop or PC. There is a PIN code there as well as a password (in case you forget your PIN). However, if you forget both – you are in trouble, so make sure to write them down somewhere. This is the main minus of hardware wallets – if you forget your password and PIN, than you won’t be able to reach your coins at all.
Another minus is that making transactions with this type of wallet is less convenient than the one you have at online services. Therefore, offline hardware wallets are great for storing big sums of coins but they are not so good for operations. The best solution is to keep a small amount of coins in the online wallet to make transactions any time you need and place the rest of your money to a hardware wallet.
Finally, if you want to keep coins in the offline wallet but don’t want to deal with all complexities of hardware wallet, try paper one instead. These two options are perfect for those who want to store large amounts of money and don’t plan to spend them for a while.