Any experienced cryptocurrency user would tell you that to mine some ‘gold’ is just half a battle – it’s much more important to understand where exactly it’s better to store your money.
Today, with the development of the cryptocurrency, investors, miners, and traders have got various opportunities to keep their digital money. To choose the service a user should take into consideration many factors, the most important are the following:
- Good security system;
- Ability to get your money quickly;
- 24-hour access to the wallet.
Nowadays, there is no universal method that would perfectly fit anybody – all the systems have their advantages and disadvantages.
Types of Wallets
There are 2 main types of wallets – hot and cold. They can also be ordinary and multi-currency. As you could guess, the last ones let keeping cryptocurrencies of different types in one and the same place. The right choice of the hot or cold wallet is an important step. You should understand that the safety of your cryptocurrency assets depends exactly on the wallet.
Traditionally, the cold wallets are considered to be more secure. They are intended to be stored autonomously without an Internet connection. A person can use a personal computer, mobile phone, flash-drive or even a list of paper but hardware wallets are considered to be the most secure. It is extremely difficult to infect such a wallet with viruses or Trojans but still, it is not so cheap.
If you are going to use a cold system buy the wallets only from established and reputable manufacturers.
Keep your keys in a safe place.
It is better to generate your private and public paper keys using the PC with no Internet connection.
Another type of the wallets is a hot one. It is called so as the money kept in it is always accessible online and you can spend them at any time. Such wallets need an Internet connection as they support active connection to the blockchain. They are divided into the following groups:
- Mobile Wallets are recognized to be the most convenient but less secure. You can find a lot of different wallets on different resources where they are presented as the most friendly and well-secured applications. The developers pay more attention to the functional segment of the application than to the security. Another problem is that if the developers increase the security level than the ‘light’ wallet will become really ‘heavy’ and this will make the applications not so attractive to the consumers. To speak in figures – about 65-85% of mobile applications have their vulnerabilities;
- Desktop Wallet is a good way to keep your crypto assets, especially if it is multi-currency. They are presupposed to be installed on your personal computer. Exodus is one of such wallets that stands out among the others - it differs with its friendly and beautiful interface, control over private keys and built-in exchange platform ShapeShift. At the moment, the wallet supports 7 cryptocurrencies including ETH, DASH, LTC, REP, GNT, and DOGE;
- Online Web Wallets are accessible through the Internet services thanks to which a user may keep the digital money without installing all the blockchain to the computer. As for the advantages of them, we can list the following:
- The ability to conduct transactions quickly (especially important for the traders, as for them every second count);
- The ability to manage the account from any device;
- No problem with regaining access.
Use separate hard drive or install the application to the separate computer.
Don’t use software if you don’t trust the producer.
Check the system on the absence of side applications with scanning the computer.
Use a new phone number and email on the server that cannot be hacked.
Paper Wallets presupposes the offline address and key generation. This time, you choose the medium to keep the private and the public key of your wallet yourself. The advantage is that the keys are not stored in the digital form that is why you have no reason to worry about hackers and equipment failures.
Usually, the keys are printed in the form of QR-codes that while being scanned open access to all your transactions. Be careful! If anybody obtains the key or even the photo of it you are under risk to lose all your assets.
All types of wallets listed above have their advantages and disadvantages. It is better to combine a couple of them. That will help you to understand what works better for you and will save your digital assets.