WITH this rapidly growing community many investors are asking what is the best method to safely store their cryptocurrency assets.
Crypto isn’t the wild west it was at the beginning of the decade however, investors still face plenty of instability and risk in this decentralised marketplace. Although exchanges offer wallets for various coins these exchanges are susceptible to various risks. Exchanges are more prone to getting hacked, crashing, encountering legal and regulatory issues.
All of which put your assets at risk. Storing your assets on an exchange is like sitting in the passenger seat whilst your friend drives. Yes, you trust him but you aren’t fully in control.
A cost-effective alternative to exchange based wallets are software wallets. Software wallets can be downloaded and utilised as a desktop application.
Software wallets are offline thus are less susceptible to being hacked, and or freezing your funds. However, software wallets are vulnerable to malware and viruses that may be encountered through your computer.
The safest and most efficient way to store your cryptocurrency is hardware wallets. Anything of significant value should be stored in a hardware wallet.
Hardware wallets like Ledger Nano S is a physical device, like a USB drive, that stores your private keys and currency locally, and isn’t connected to the internet. Having a wallet that is completely offline removes the all the potential risks associated with alternative wallets.
With this rapidly expanding industry investors should take the necessary steps in safely securing their assets.
Emin Gun Sirer, a distributed systems and cryptography researcher at Cornell University explains that the more secure the ecosystem, the less attractive a target it is too bad actors.
“Help newcomers to crypto with their security, the area is new and we need to support the people who are just finding their way in.” Sirer says. Please do yourself a favour and download/purchase an alternative wallet to store your assets rather than hold on an exchange. There have been too many stories of innocent investors losing access to their assets due to various issues associated with exchanges.
Exodus Software Wallet: https://www.exodus.io/
Ledger Nano S Hardware Wallet: https://www.ledgerwallet.com/