If you’re not cautious, the cryptocurrency trading industry isn’t the safest place, but there are a few ways to secure your cryptocurrencies to the best of your capacity.
There are people who don’t have the best of intentions, and you could just get your funds robbed from you if you’re not careful in the trade zone. I’m not saying any of that to scare you… well, a little bit, maybe. Only a little bit, because there are real dangers out there and I want everybody to be healthy as a fellow cryptocurrency enthusiast.
The importance of a wallet
By now, it should be common knowledge that cryptocurrency wallets are the foundation of safeguarding your crypto. Of course, if you’re trading Bitcoin, you’ll want a stable wallet for Bitcoin. The issue is that there are so many different kinds of wallets that people, particularly people who are new to the cryptocurrency industry, find it overwhelming.
Not everyone knows this, but for different trading types, there are special wallets. There are two key wallet forms, hot wallets and cold wallets. Hot wallets are wallets which are linked to the internet at all times. Although some cold wallets have the ability to link to the internet, they remain largely offline. Although there are no rules that say you have to use a certain kind of wallet, these kinds of wallets are certainly recommended for their particular uses:
Hardware wallets require a true physical device and are cold wallets. To help you work around the appliance, it looks like a USB with a tiny OLED screen and side buttons. They’re usually going to set you back a little bit of cash ($70-$150 USD), but they’re definitely the best kind of wallet. This makes it perfect for individuals who possess a large amount of crypto.
One of the most known cold wallets are from Ledger company :
Paper wallets are literal pieces of paper that contain the public address and private keys. Paper wallets are cold wallets. They are a cheaper option for wallets with hardware, but they come at a different cost. You do not withdraw a fraction of your funds with paper wallets; either you withdraw all or you do not withdraw at all. This makes it perfect for individuals who, for a certain period of time, intend to HODL a certain amount of crypto.
These hot wallets are software that are downloaded on your personal computer or laptop and installed. They are available for all operating systems, making them suitable for individuals who are still on laptops/computers.
Web wallets that are accessed via web browsers are web wallets. In most instances, by making an account on a cryptocurrency exchange, you’ll be able to get a free web wallet. These wallets are ideal for beginners or people who want to try out a new exchange, ideal for keeping small quantities of cryptocurrency. These wallets are ideal for beginners.
Mobile wallets that are downloadable apps for your smartphone are mobile wallets. These wallets are perfect for individuals who are constantly on-the-go or people who pay for items with crypto on a daily basis.
Those are the hardcore version of cold wallets and my favorite kind of backup device so far because they are almost indestructible and rely on mechanical parts. We will review some of the best but you can check out cryptosteel capsule below, you will be amazed by the simplicity and efficiency.
Things to keep in mind
There are some general pointers that you might follow to make your trading experience safer and safer, along with the type of wallet you are using. To make trading on exchanges safer, here are a few tips you should follow:
Keep your password secure
Getting a strong password is the first step in protecting your account. If you can, use capital letters, numbers, and symbols as well. Also, make sure that all your accounts use distinct passwords so that if a hacker were to gain access to your addresses, he/she would not also get access to any of your other accounts.
2-Factor-Authentication is a way for individuals to add an additional layer of security to their accounts. You’ll have to check yourself by verifying a text message or email by allowing this.
You can do it if there is an opportunity to check your account. You would not only be safer to trade by checking your identity on exchanges, but exchanges will also provide exclusive benefits.
Don’t send out any personal details. It’s a huge no-no to give out private information on cryptocurrency exchanges. You encourage hackers to get even closer to gaining access to your code by giving out some private data. Just give what is completely absolute.