Security first: The best solutions for the safe storage of cryptocurrencies

One aspect of investing in kryptowalutywhich is often overlooked is security.

It's understandable - it's easy to get caught up in the trading and price volatility of this asset class. However, it is important to learn more about how to keep your funds safe. After all, your profits won't mean anything if they are stolen during a break-in. Given the highly digital nature of the ecosystem cryptocurrencyIt's hardly surprising that malicious actors are equally sophisticated.

Don't fall victim to these unfortunate events: read on and learn how to safely store cryptocurrencies.

What are cryptocurrency wallets:

Just like the cash we need for our daily expenses is kept in wallets, cryptocurrency wallets perform the same function. However, in the context of a decentralized network, these wallets hold our digital assets for trading and storing.

There are several types of wallets: hot, cold, and also centralized platforms that act as wallets that you can use to hold your digital assets.

Centralized platforms

The use of secure online platforms serves as an option for those who are concerned about hacking their hot wallets and for those worried about accidentally destroying or losing their hardware cold wallets (We will explain more on this later). Centralized platforms use a combination of hot and cold wallets and even enrich them with additional services such as insurance policies for your assets.

What are the most secure centralized platforms?

Nebeus (Developed and operated by Money-4 Limited & Rintral Trading SL)

Nebeus provides its users with hot wallets, free cold wallets as well as an insured cold warehouse! No other platform on the market currently offers cryptocurrency insurance for consumers as such a service is typically reserved only for large institutions.

Users Nebeus have the option to purchase a subscription that will allow them to activate an insured vault where they can transfer their digital assets with a single click.

Assets to be held in an insured vault will be stored in a cold room and a bank security grade III vault under the care of Bitgo, a leading institutional digital asset storage company. The assets will be insured with an insurance policy Lloyd's of London for an amount of $ 100 million, including third party hacking, copying, theft and loss of private keys, confidential theft and more.

With all these solutions you can be sure that your cryptocurrency assets will remain safe.

Hot Wallets

Hot wallets are wallets that can be accessed using devices such as smartphones or laptops. However, while this type of wallet is convenient, they are also more prone to hacking and online attacks. Fortunately, such break-ins do not happen very often.

What are the best hot wallets?

Metamask

Arguably one of the best and most iconic hot wallets, Metamask provides users with a wallet to hold all of their ERC-20 tokens. It is easily one of the most popular and supported wallets in a whole range of decentralized applications (dApps). Its intuitive interface and ease of use also help to significantly lower barriers to entry for people interested in entering cryptocurrencies. It even works as an extension across browsers.

1inch

While 1inch is perhaps better known as the fastest and most advanced aggregation protocol on the market, it also provides users with an easy-to-use hot wallet. The beauty of this is how its wallet provides users with easy navigation of the platform and access to various online DEXes. At the same time, their wallet allows you to store any ERC-20 token.

It's easy to see why 1inch has become a popular choice. It gives users easy access to liquidity, hassle-free transfers from any other wallet, and security.

Cold wallets

Cold wallets are devices known as such due to their ability to "freeze" and store cryptocurrencies and/or private keys in a offline. These devices, such as USB sticks or external hard drives, are compact, easy to carry, and easy to store in a secure physical location. Assets kept in cold wallets are free from cyber attacks and hacks because they are not connected to the Internet.

What are the best cold wallets or hardware wallets?

Ledger

Ledger provides users with two options to choose from. If you are a beginner, you can choose Ledger Nano Swhich offers support and security for a range of different coins. On the other hand, suppose you want to expand your security options. In that case, you can choose Ledger Nano Xwhich offers the ability to safely store funds on a hardware device and manage them from a secure application on your phone via Bluetooth.

Trezor

Trezor is widely regarded as the first legal cryptocurrency wallet. It was built by satoshilabs and gave users the ability to safely store their bitcoins.

His current offer includes Trezor One i Trezor Model T. The first is a simpler model that offers a basic yet secure way to store cryptocurrencies. The second provides users with an easier-to-use device equipped with a touch screen.

Wnioski

Risk management is a part and integral part of the investment, but assurance safety Your assets belongs to this area. As the cryptocurrency world grows and evolves, it becomes even more critical to protect your digital assets with the necessary precautions.

In addition to finding the security solution that is right for you, it would also be good to keep abreast of the latest security developments, attacks and best practices against them.

Some people call cryptocurrencies the wild west, but as long as you make a conscious effort to do so, it's perfectly possible to stay safe