Safe crypto storage is the first thing which should be clarified when start working with cyber assts. Such service is offered by many different services but each variant has its own advantages and disadvantages. We propose to examine all main types of storages and understand which of them would be appropriate in a particular case. In this article methods are disposed from the least reliable to the most reliable.
Contents
If it’s worth keeping coins on the stock market
Crypto exchange is convenient and functional when fast online crypto exchange is needed, however as storage their value is doubtful. On the one hand, keeping on the stock market is convenient- the used doesn’t need to control their keys or care about their safety themselves. It’s the stock market responsibility.
The disadvantage of it is nobody can be trusted 100% online. Iven the stock market itself is fair, with the good reputation and works for a long time – there are no guarantees that it won’t be hacked and robbed by hackers. Bitfinex, EXMO, Hotbit, Livecoin might be taken as examples. And even Binance was hacked in 2019. Security services of the stock markets constantly work but attackers are their way as well.
Moreover, keeping crypto on the stock market is possible in two cases only:
- If you are an active trader, taking several deals a day. In this case it’s irrational to withdraw and deposit funds as it leads to huge rate expenses.
- If the sum is not big and it’s not crucial to lose it.
But be aware of risks.
A lot of stock markets have special funds for bearing the loss of victims. However, the funds are not limitless. Highly recommended to withdraw coins onto external wallet if there is no intention to use them.
Thin Crypto Wallets
Thin wallet for keeping cryptocurrency can be installed on computer or phone fast, there is no need to download blockchain for its work. An application, which afterwards connects the blockchain in the process of work through third-party server, is installed. Also, these services often support additional accesses as Crypto Loans Binance or staking.
E.g., thin wallets:
| Name | Supported Platforms | Cryptocurrency |
|---|---|---|
| Atomic Wallet | Windows, MacOS, Android, iOS, Ubuntu, Debian, Fedora | 300+ coins |
| Trust Wallet | Android, iOS | 160 000+ assets on 40 blockchains |
| Exodus | Windows, MacOS, Linux, Android, iOS | 100+ coins |
| MyEtherWallet | Android, iOS, website | ETH and any tokens ERC-20 |
| Blockchain.com | Android, iOS, website | Bitcoin, Ethereum, Bitcoin Cash, Stellar, Wrapped-DGLD, Algorand, Tether, Aave, Polkadot, Yearn Finance |
| Jaxx | Android, iOS, Mac OS X, Windows, Linux, расширение для Google Chrome | 100+ coins |
Thick Crypto Wallets
The name of services for keeping cryptocurrency which need to download full blockchain version on computer. It allows to minimize reference to external servers which means increasing of safety.
The most popular wallet of this type is Bitcoin Core. It is the first storage for BTC. Still actively used and according to Veriphi survey in 2020 it is the safest of all bitcoin wallets. Despite some inconvenience in blockchain loading and synchronizing, it provides the highest level of security. Armory, Bitcoin Knots are referred to thick cryptocurrency.
Paper Storages
Before the invention of hardware wallets, which we are going to talk about a bit later, paper ones used to be the safest variant. In comparison with hot crypto wallets for iPhone (constantly online-connected to the internet as a result hatch for hackers), such variant provides offline storing. The idea is in printing the needy keys in sheets of papers or QR-codes. There are special services for forming these wallets, so the action takes a couple of minutes. Printed paper is kept in a secure place. Assets can be transacted onto the wallet’s address. But for withdrawing and getting an access to assets QR-code with the key throughout program wallet scan needed.
The method is safe and free of charge but not really convenient.
Hardware wallets
Even much securer wallet is “USB driver” for keeping cryptocurrency is hardware devices the main idea of those to keep private keys to assets access.
Such way is also “cold” as a paper but more convenient and securer. The paper might be found, stolen, used. Hardware devise won’t be used without a PIN-number.
Popular crypto wallet hardware:
- Ledger.
- Trezor.
- Coolwallet.
- KeepKey.
- SafePal.
The princeps of work are the same- for sending the transaction the devise is connected a desktop wallet and then make appropriate actions.
Majority of crypto hardware wallet India work of USB, however there are some variants with Bluetooth support which allows to use them with mobile services.
Some advice on how to choose the wallet
Cryptocurrency itself is not stored anywhere, it’s a computer code existing online only. Closed and opened keys, seed-phrases and transaction history are kept. Any crypto wallet security works the following way:
- Private key is formed on a seed-phrase and allows access to assets.
- While transaction they are signed with private key.
- Public key is formed on a private one and serves in order to decrypt incoming transactions.
- Addresses are generated on public and private keys. If it is the HD wallet (hierarchically deterministic) then their addresses could be unlimited quantity, but it’s impossible to decode the key basing on address.
- Wallet balance is calculated on transaction history – variance between total received sum and common spending.
- All online transactions and wallet balance might be freely checked on blockchain-observer- this information is publicly available.
All in all, to keep key crypto wallet safe and seed-phrases are highly important, as everything is grounded on them.
Choosing cold cryptocurrency to keep it in cold crypto wallet for iPhone for long-term investments if you are not planning to spend the coins in the nearest future. It will let sleep peacefully and not be afraid of attacker. Read how to create most secure crypto cold wallet — it is not difficult. Thin and thick storages are for every day transactions due to their conveniency and widen functionality. Anyway, be aware of keeping keys and seed-phrases. Particularly the devise where the wallet is installed should be safe and have anti-virus and Brandmeier.
Conclusion
Keeping cryptocurrency is great responsibility and the owner has a right to choose whether they are ready to entrust such a thing to a third-party server. All variants have their own pros and cons, but all experts without exceptions recommend to have personal responsibility. Also keep in mind that all transactions in blockchain are irreversible, which means if the crypto wallet list is hacked and money withdrawn, it will be impossible to return them.