Money and the security of it have definitely changed over the years.
We went from holding Gold in safes to keeping cash under mattresses. All we had to worry about was getting physically robbed.
Now we have debit cards that scammers are easily getting a hold of. Most of us have gotten a call from our banks for security reasons because someone else was using your account.
Now we have the digital currency like cryptocurrencies and we have another thing to worry about.
Bitcoin is not a mystery anymore. Most people know about it and many people are talking about it on a consistent basis. However, most of these people have it stored in a cryptocurrency exchange.
This can either mean they’re not very well rounded on the security of it or they don’t care much about their holdings.
One of the easiest ways to do it is keeping a paper wallet. This is what most people use when they gift cryptos to one another. Using a Wallet Generator, you can choose the coin you want to use the design for and create it.
Simply create the paper wallet with the personal and private address on it, print it and write the number of coins in that wallet.
Using a paper wallet is very safe because your Bitcoins are offline. This makes it super hard for a hacker to get into your account unless the paper with your hash address was compromised.
Another form of cold storage is placing your hash address on a USB in a notepad.
A hardware wallet is a very idea if you can spare the extra money to buy it. If you are getting deep into cryptos, a hardware wallet is a great idea.
It can only be used if your wallet is on the USB. The best part is as long as you have your seed words, you can log in from any hardware wallet.
A hardware wallet is very simple to use. Plug in the USB and go to the specific website for it. It will prompt you to put in a pin number. This is the same pin number you always use so make sure you remember it.
If not, you will need to use the seed word to regain access to your cryptocurrencies. Seed words are specific 12 or 24 words that are assigned to each wallet. The words in chronological order will help you regain access.
There are two main hardware wallets that most people have heard of and the first one is Ledger. Ledger is the one that is filled with the most cryptocurrencies. You can currency store Bitcoin, Bitcoin Gold, Ethereum, Litecoin, Vertcoin, Dash, Komodo, Stratis, Ripple, Viacoin, NEO, ERC20 tokens, and much more.
Trezor is the next hardware wallet on the list and it is just as good as Ledger. It is unfortunately not able to hold as many cryptocurrencies as its competitor but the user interface and experience is a bit easier.
It follows the same path as far as putting the USB in, putting your pin number in and selecting the coin you want to send/receive.
This is the one on the list we don’t recommend but if you are new to the crypto world, just keep it in an exchange. An exchange is a website you use to buy and sell your cryptocurrencies, Coinbase is the biggest one and the one most people know.
You can only buy Bitcoin, Bitcoin Cash, Litecoin and Ethereum with them. They give you the option to be able to keep it in your wallet or in a vault which is essentially a cold storage.
This is the safest route to go but in the case you wanted to take it out and sell it right away, it won’t work. You would have to go through a few steps to make sure it is you trying to take out your digital currency.
Multi-signature wallets are said to be one of the safest ways to store your Bitcoin. It is not the fastest way to do it but it is gaining popularity. How it works is you need a few people to accept the trade that someone initiates.
This way, not one person can trade or send out any cryptocurrencies without someone else approving it. If a hacker was trying to steal your money, you are safe because you would need other specified people’s approval.
Tips for Keeping your Cryptocurrencies Safe
- One of the best ways to keep your digital currency safe is to never keep it on your desktop. Keeping it on your desktop is an easy way for someone to get access to your computer and steal your coins. It is not hard for a hacker to get entry into your computer. All they need to do is send you a link that can be installed on your computer.
- When you start to accumulate a lot of money in crypto, you tend to get cocky and want to reveal it to people to show your success. Keeping your holdings a secret is a very good idea.
- Always use a two-factor authentication to keep yourself safe. When you log into an exchange whether it’s Bittrex or Binance, you want to make sure it asks for a two-factor authentication rather than send you a text message for verification.
- This may sound like you’ve heard it so many times but always make sure you have a very strong password that you know really well.
- Try not to keep your cryptocurrency in one location. Keep it in different wallets with different addresses if it allows you too.