Keeping your cryptocurrencies safe should be one of your priorities in you are planning to invest in any of them. In this article, we’ll tell you what are the best options to store your digital assets.
Before we get into the best ways to keep your crypto assets safe, you should understand how cryptocurrencies work, how they are created, how to transfer and store them. Let’s take Bitcoin as an example. Bitcoin, like many other cryptocurrencues, uses the blockchain technology to create the coins and run the transactions. When you buy some bitcoins from an exchange for instance, it is this network that will allow the asset to go from there to your wallet. Just as it goes with physical bills and coins, you indeed need a ‘wallet’ to store your digital assets. Nearly all exchanges where you can buy cryptocurrencies will have a wallet on their platform. That means you can just directly buy the asset and leave it there. This is useful for day traders for instance who wish to perform many trades each day and do not hold on to the coins. However, for long-term investors, this is definitely not the best scenario.
Because cryptocurrencies are digital, there are exposed to the same risks as all the devices and websites that are connected to the internet. That means there have been quite a few hacks & thefts over the last few years in the cryptocurrency market and that has been a major concern. In 2018 alone, we estimate that around $1 billion worth of digital assets have been stolen from crypto exchanges. Once that is the case and because of the nature of the system (a decentralized network), there is no way to recover your assets, undo the transactions or having your funds insured. Even though this might sound terribly alarming, there’s an easy fix for this problem.
The best way to store your cryptocurrencies safely is by purchasing a hardware wallet. Unlike a wallet in an exchange, with a hardware wallet your private keys are stored offline. That means that you are protected from online thefts & hacks. Here are what we believe to be the 3 best options as far as hardware wallets go:
Ledger Nano S
Protect your crypto assets with the most popular multicurrency hardware wallet in the market. The Ledger Nano S is built around a secure chip, ensuring optimal security.
Ledger Blue is a premium hardware wallet with an advanced user experience thanks to a large touchscreen interface.
Trezor is a single purpose device which allows you to store your cryptocurrencies safely and make secure transactions.