People who decide to buy bitcoin or any other altcoins in 2018 often wonder where to store cryptocurrency and how to choose the best wallet, both regarding usability and security.
There are several options.
Many people prefer to store their bitcoins and altcoins on cryptocurrency exchanges. This is convenient because the trading platforms support dozens and some hundreds of different coins. You will also have quick access to the sale or trade of your crypto assets to others.
But this method has many drawbacks:
- the user is forced to trust their “money” to a third party.
- most exchanges are centralized. This makes them vulnerable to hacking, DDOS attacks, which jeopardizes your crypto. In history, there are many cases of hacking trading platforms or a conventional bench, and the loss of funds estimated at millions of dollars and thousands of bitcoins. Well, sometimes the support of exchange tries to reimburse its customers, but it is not always the case. And if it happens, it is not entirely refunded.
an exchange may merely suspend the input and output of a particular cryptocurrency, and you will lose the right to dispose of it for some time.
To keep crypto-currency in an online wallet
Online wallets for crypto is available when you connect to the Internet via any device, allow to carry out transactions with small commissions, support many popular cryptocurrencies. However, at this pluses end. In fact, online wallet it’s just a site to which you trust the storage of their funds. All private keys are on the Internet. Such stores are subject to phishing (identity theft), malware, hacker attacks. To list the disadvantages of online cryptocurrency wallets can be forever, plus only one-convenience.
Cryptocurrency storage on a hardware wallet
Hardware wallet is a device that looks like a flash drive. To spend cryptocurrency, first, you need to connect it to your computer or smartphone. Keys that provide access to the tools are stored separately from the affected equipment, and work with them takes place in a secure environment, which allows you to keep them safe even when you connect to a compromised PC. If the wallet is stolen, the attackers will not be able to access the cryptocurrency funds stored there, because a password protects it, and the user will be able to restore it and return their bitcoins and altcoins with a unique code.
In General, a hardware wallet is an excellent option for storing large amounts, both in bitcoin and other currencies, because such wallets are often multi-currency and support more than a dozen altcoins and tokens. You can buy hardware wallet on the Internet, do not advise to buy from “hand”, only from official suppliers!
Storage on mobile wallets
Is the most convenient way for those who are paying by bitcoin, right in 2018 there are many places where this can be done, produces frequent transactions within a day. Access is provided through a unique application on the mobile phone, which provides a comfortable and fast operation. However, mobile wallets work with remote servers, which jeopardizes the funds. But if the amounts are not too large, the risk is justified by the ease of use. Paper cryptocurrency wallet is a document that contains a copy of two keys: private and public. Sites that provide such wallets generate two addresses.
This storage method is characterized by high security since private keys are not stored on your computer or network. However, there is a risk of theft or loss of the paper wallet. Everything is like a standard wallet for fiat. There is no convenience in the paper wallet, suitable for those who bought cryptocurrency, for example, in 2018 and wants to forget about it until 2020, in the hope that bitcoin will cost 100,000.
Cold and hot wallet for cryptocurrency on your PC
High security characterizes this method. To use the desktop wallet, you need to download a program that will give access to the repository. They come in two kinds. Cold or thick wallets that are installed on the computer along with all blockchain records; it will be updated and take up more and more space (in the case of bitcoin above 100 gigabytes). “hot”, thin or hot, which take up less memory (because they store only the last few chains of the blockchain), provide higher speed, but are vulnerable (risks are negligible in the case of top cryptocurrencies), since the missing information will have to be taken on third-party servers.
Bottom line: what kind of cryptocurrency wallet to choose in 2018, everyone Has to decide what he needs. The main thing: to understand everything, not to rush and to consider all options, weigh the pros and cons. Remember, the safety of your bitcoins depends on each of your decisions when choosing a place and method for storage.