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Keeping your crypto assets secure is the most crucial aspect of your cryptocurrency journey.
Your
- research,
- chart analysis, and
- price action tracking
are useless if you canât
- store,
- secure, and
- monitor your crypto.
Your
- research,
- chart analysis, and
- price action tracking
are useless if you canât
- store,
- secure, and
- monitor your crypto.
Understand your crypto storage options so you can invest without the fear of
- theft,
- hacking, or
- losing accessibility.
But first âŠ.
Whoâs in charge of your crypto?
- theft,
- hacking, or
- losing accessibility.
But first âŠ.
Whoâs in charge of your crypto?
Youâve likely heard this beforeâŠ
âNot your keys, not your crypto.â
To understand this, letâs define âcustodyâ real quick.
Crypto custody refers to who has the ultimate control over your wallet.
âNot your keys, not your crypto.â
To understand this, letâs define âcustodyâ real quick.
Crypto custody refers to who has the ultimate control over your wallet.
There are two kinds of crypto wallets.
1. Custodial Wallets and
2. Non-Custodial Wallets
There are advantages and disadvantages to both.
Letâs explore...
1. Custodial Wallets and
2. Non-Custodial Wallets
There are advantages and disadvantages to both.
Letâs explore...
Custodial Wallets:
Itâs a digital wallet, and your private keys are held by a third party.
This is great for you in case you forget your password or private keys.
Youâre not in complete control, and you run a risk in case of a hack or a breach.
Itâs a digital wallet, and your private keys are held by a third party.
This is great for you in case you forget your password or private keys.
Youâre not in complete control, and you run a risk in case of a hack or a breach.
Non-Custodial Wallets:
This type of wallet issues you a set of private keys.
There are no backups made.
If you lose or forget your seed phrase, your assets will not be
- accessible,
- transferable, or
- retrievable.
You should write down your seed phrase and keep it safe.
This type of wallet issues you a set of private keys.
There are no backups made.
If you lose or forget your seed phrase, your assets will not be
- accessible,
- transferable, or
- retrievable.
You should write down your seed phrase and keep it safe.
Here are the âBig 3â crypto storage options today:
- On Exchange
- Software Wallet
- Cold-Storage
- On Exchange
- Software Wallet
- Cold-Storage
On Exchange:
This is the LEAST secure method of storage.
Itâs convenient to buy crypto from an exchange (like CoinBase).
But, unless actively trading, transfer it off the exchange into a wallet.
Note that Robinhood and eToro will not allow you to transfer off their platform.
This is the LEAST secure method of storage.
Itâs convenient to buy crypto from an exchange (like CoinBase).
But, unless actively trading, transfer it off the exchange into a wallet.
Note that Robinhood and eToro will not allow you to transfer off their platform.
Software Wallet:
This can be accessed as an app or on the web.
It allows quick access to your wallet via the internet.
There are custodial and non-custodial options for software wallets.
Two non-custodial with an excellent track record are:
- Trust Wallet
- Exodus Wallet
This can be accessed as an app or on the web.
It allows quick access to your wallet via the internet.
There are custodial and non-custodial options for software wallets.
Two non-custodial with an excellent track record are:
- Trust Wallet
- Exodus Wallet
Cold Storage:
Cold Storage wallets are like USB dongles.
This is the most secure way to store crypto.
If you donât plan on trading in the short term, this is the way to go.
Itâs not the most convenient method, though.
What you gain in security, you lose in convenience.
Cold Storage wallets are like USB dongles.
This is the most secure way to store crypto.
If you donât plan on trading in the short term, this is the way to go.
Itâs not the most convenient method, though.
What you gain in security, you lose in convenience.
Key Strategies for Crypto Storage:
- Cold storage is most secure but least convenient
- Store off the exchanges unless actively trading
- Non-Custodial wallets are optimal for security
- Not all cryptos can be stored in every wallet
- Donât âkeep all of your eggs in one basketâ
- Cold storage is most secure but least convenient
- Store off the exchanges unless actively trading
- Non-Custodial wallets are optimal for security
- Not all cryptos can be stored in every wallet
- Donât âkeep all of your eggs in one basketâ
Make a game-plan of what wallets are best suited for your situation.
This is still a new field. Do your own research before everything.
Ensure your assets are protected and accessible.
And most importantly, Donât Get Hacked...
This is still a new field. Do your own research before everything.
Ensure your assets are protected and accessible.
And most importantly, Donât Get Hacked...
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