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Tips to keep your cryptocurrency safe

Tips to keep your cryptocurrency safe

Thursday April 12, 2018,

5 min Read


If you are looking for ways to keep your cryptocurrency safe then or are really interested to trade a bit and hold more of this entity or currency for the long-term, then read this article.

The digital platform is certainly safe which also includes your system in case your system gets hacked and this information gets leaked, it takes a matter of minutes to trade or sell these bitcoins. Today, we will discuss the different ways of storing your cryptocurrency, and also about both online and offline services that are available for storing the currency.

Some of you who are a little orthodox and would like to save the currency completely off the grid, paper wallets are just for you. So, let’s talk about ways to keep your Cryptocurrency safe and secure from the likely hackers and cybercriminals.

The ICO list is endless and more than 1000 different types of cryptocurrencies are available in the market at this point in time. A wallet is a safest and secure way to store your Cryptocurrency and this wallet has to have certain basic traits to make it trustworthy.

Some of those basic mandatory traits are:

Cost – Is it free? Or how much does it cost along with its pros and cons

Secure – A track record of cybersecurity provided by the company

Mobility Accessible anywhere and anytime? Is the wallet easy to keep or lose?

User-Friendly – The wallet should be able to store more than one type of cryptocurrency

Convenience – Instant purchase in case of emergencies or time constraints possible?

Style – This is just icing on the top of the cake. People look for stylish wallet even when it comes to digital wallets.

Now, your job is to find a wallet that provides and covers all these traits or the best combination of them. You need to consider the good and bad side of every wallet since you would be dealing with a lot of money in the form of cryptocurrency which shouldn’t lead to regret later on.

Wallets are the only feasible way to keep this currency safe from hackers and cybercriminals.

However, the type of wallet can still be your choice. You could choose online or offline wallet and the more orthodox paper wallet to store it in your safe deposit box. It is your decision to keep them safe and secure. So, make a smart decision since it involves a lot of money.

Online Wallets

Online wallets are built for the very purpose of storing Cryptocurrencies and they can be accessed from anywhere with an internet connection. You will always have a link to your funds.

These wallets are purely storage based and doesn’t provide an option to exchange coins. You need to move them to a different account or wallet that helps in the exchange process. Security is their top priority and even hackers are unable to crack it easily.

There are lots of online wallets out there but beware as some of these can be fake too. So, ensure that you check their credibility before using their services.

Offline Wallets

These wallets are basically software that you download to your system which helps store your cryptocurrency with proper encryption and accessible with only your private key. The important point to notice here is that the private key is completely under your control which is not possible in case of online wallets.

These wallets have limited internet connectivity, so the threat of getting hacked is potentially very low. The best example here would be Electrum which has been trusted in the community for a long time and a large number of users use them to store their currency.

Hardware Wallets

This is more of a hyper-secure solution for cryptocurrency for those who are paranoid about the safety. Hardware wallets can be devices that need to be plugged into your system via a USB.

Very limited access to the internet (lesser than offline wallets too) and they are stored in a secure location known only to you. All your cryptocurrency information is stored in that memory stick device.

These are quite expensive and I would recommend these types of wallets to those who are serious about investing in cryptocurrency. The only risk involved here would be connecting these devices to a malicious infected system which will compromise the security of the information stored on the stick.

You need to be sure about the security of the system before inserting this device to check or update your Cryptocurrency.

Paper Wallets

There are some people who are afraid of hacking on such levels. But, their paranoia about getting digitally robbed is a genuine concern.

These paper wallets are for those people who want their information stored completely separate from the digital grid. This can be in the form of your private or public key or even a QR code. You can store the piece of paper in a safety deposit box with access only to you.

The information about the cryptocurrency is completely off the grid, so hacking this information is impossible. Please ensure that this paper is kept in a secure location and that you do not lose access to it. If you lose access to them, then you have lost the cryptocurrency altogether.

Things to be aware of

There are literally thousands of wallets that support Cryptocurrency storage. However, you need to know the credibility of them before choosing them.

There are various factors that decide the credibility out of which their security history is the main one. Once you get hold of this information, you can certainly make swift decisions. Their history in the community will assist you to choose the best wallet.

Final Thoughts

You may have exchanged or mined bitcoins over a long period of time but keeping them safe and secure from any outside threats is a must.

Until the moment you wish to sell them or trade them, the safety should be your top priority. Usage of these wallets certainly helps in keeping your cryptocurrency secure by an added extra layer of security to your precious data.