Store Your Cryptocurrency Safely

How To Store Your Cryptocurrency Safely In 2021

It’s vital to secure your cryptocurrencies, whether you’re new to the crypto realm or have been there for a while. With the recent rise in cryptocurrency prices, more people are investing in them which has led to a spike in the number of hacking events involving crypto exchanges and private wallets. 

It is essential to protect your digital assets from potential threats in order to increase your profits in the long term. So how do you ensure that your crypto is safe? You would need to invest in a reliable wallet, and here are some:

  1. Hardware Wallets (Cold)

Hardware wallets consist of offline kept paper wallets, USB and offline similar data storage devices, and even physical bearer items such as physical Bitcoins.

Hardware wallets are the most secure solution when it comes to keeping your private keys safe. They are physical security vaults that safeguard your Bitcoin and other cryptocurrencies from a variety of threats while also allowing you to access and spend them with ease.

Unlike other cryptocurrency wallets, hardware wallets use a mnemonic phrase that can be used to recover your wallet and can also be used in the event that the device itself is lost. This is, however, one of the most serious flaws with hardware wallets, because anybody who obtains them has unrestricted access to the resources they contain.

Hardware wallets come in a variety of shapes, sizes, and prices. They start at $49 for a KeepKey wallet and can go up to $119 for a multi-asset Ledger Nano X.

  1. Software Wallets (Cold/Hot)

Many software wallets can be used to handle a number of cryptocurrencies from most mobile devices, making it one of the most popular ways to keep bitcoin among mobile users. Many software wallets also include desktop versions that allow users to manage their own private keys on Linux, macOS, and Windows.

Software wallets like Electrum and Exodus, which are available for both desktop and mobile operating systems, are among the most popular bitcoin wallets. Even the safest solutions, however, lack some of the security protections found in hardware wallets.

We recommend using a software wallet with two-factor authentication to increase your security (2FA). Make sure you’re secured against viruses, keyloggers, and other malware, as they can steal your private keys and seed phrases if they’re not prevented.

  1. Metal Wallets (Cold)

Metal wallets are physical metal plates or devices that can be used for secure offline storage of recovery phrases, private keys, and potentially other sensitive information. As they’re made of metal, they’re inherently fireproof and corrosion-resistant, while some, like Cryptosteel and Cypherwheel, are also shatterproof.

Metal wallets aren’t designed to hold Bitcoin or other cryptocurrencies. They’re simply utilized to store confidential information in a more secure manner than a paper wallet. They’re more resistant to tampering than even the most robust hardware wallets, and some have built-in anti-tampering features. They’re best for long-term storage in a secure location, as they don’t give you instant access to your money.

There’s a wide range of metal wallets available, costing anywhere from $20 to over $200 – or you can DIY one yourself.

  1. Cryptocurrency Exchanges (Hot)

Cryptocurrency exchanges have a lot to offer, such as fast fund transfers and the option to instantly trade bitcoin for other crypto assets. They are, however, generally regarded as a less secure alternative when compared to other means of storing crypto. Between 2011 and 2020, $11 billion was stolen in crypto hacking incidents, with a “significant amount” lost in hacks of crypto exchanges, as researched by Inside Bitcoins.

Exchanges are also custodians, meaning they hold all the funds stored in their accounts so users do not have access to their private keys. Despite their limitations, exchanges remain an extremely popular way to store cryptocurrencies for the simple fact that they are usually convenient and easy to use. 

They also have different security packages, such as cold storage and account-side security measures. We recommend using exchanges that use cold storage and multiple signatures, as well as two-factor authentication. Some exchanges, such as Binance, also allow users to utilize a hardware key for 2FA, adding an extra degree of security.

If you’ve made the decision to take control of your crypto assets and store them all in a private wallet of your choice, congratulations! However, with great power comes great responsibility, and the ability to keep your crypto safe depends entirely on you. On the road to being your own bank, mastering the art of keeping your crypto safe and secure is crucial. The sooner you learn it, the better.

At UKISS, we believe that everyone should have the peace of mind over their digital assets and data. And we want to allow users to easily and effectively protect them. Our upcoming hardware wallet will offer the maximum level of protection for your private keys, giving you confidence and peace of mind while using it.

About UKISS Technology

UKISS Technology is pioneering the next-generation cryptosecurity wallet that is simple, safe, and secure to use. Their technology has also been granted patents in most major markets including China, the United States, Europe, Asia, and India. Their clients include government ministries, leading medical healthcare providers based in the APAC region, and major FinTech players. Stay tuned for more information.

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