How to Store Cryptocurrency?

 Cryptocurrency is an asset that has digital form only. Cryptocurrency is digital cash that has no physical existence and that is why some people think about where they should store their digital assets. The digital existence of cryptocurrency confuses many people about its storage. There are cryptocurrency wallets in the market where people can store their digital assets safely. Today we will discuss cryptocurrency wallets since there are many. If you think this topic can help you in your crypto investment journey, then continue reading. 

 

Below is the list of cryptocurrency wallets you must know if you are planning to invest in cryptocurrency.

 

Custodial Crypto Wallet: A custodial crypto wallet is a default option for cryptocurrency storage. Your digital asset is held by a third party when you keep your crypto coins in a custodial wallet. Third parties hold your crypto in cold or hot storage. Crypto exchanges and apps keep your crypto in a custodial wallet, thus custodial wallets are issued and controlled by crypto exchanges or crypto apps.

 

One thing that you must keep in mind is that there are only a few crypto exchanges that hold your crypto for you. Not every crypto exchange holds your crypto. If you want an exchange that can hold your crypto, then you have to research and buy crypto from an exchange that can provide you custodial wallet facility. In a custodial wallet, you don’t have to work for your crypto, it will be your exchange that will keep your digital assets safe and secure with its custodial wallet. 

 

Cold Crypto Wallet: Cold wallet doesn’t work online, it works offline and this is the reason most crypto investors choose a cold wallet. There are different methods of cold wallets like hardware wallets and paper wallets. Using the hardware method of cold wallet is way more secure. Hardware crypto wallets are always considered the safest since they work with transparency and reliability. Hardware wallets are tiny devices just like a USB drive and you can connect them with your computer system and can generate the address to receive crypto to your wallet. 

 

You can keep your digital asset completely safe by using hardware wallets. Hardware wallets protect your digital asset in the best possible and secure ways. Hardware wallets work offline and this is what makes them safe and secure. Hardware wallets are the safest if you want to keep your crypto safe. 

 

Hot Crypto Wallet: Your digital assets are stored online in hot crypto wallets. Hot crypto wallets are applications, therefore they work on online modes only. Since hot wallets are applications, they are available on desktops and mobile devices. In hot wallets, you get the authority to control your virtual currency. Hot wallets also work well in the crypto market. The reason people go with hot wallets is that they are free and easy to use. Hot wallets have recovery phrases just like hardware wallets. In case you lose access to your crypto wallet, you can get it back with the help of recovery phrases.

 

If you don’t want to spend on a crypto wallet, then you can keep your crypto in hot wallets. People who keep their digital assets in hot wallets do this at their own risk. If you lose your crypto with a hot wallet, there is no other way to recover. You have to make smart choices when it comes to storing your cryptocurrency. Hardware wallets are considered more secure and safe than this one. Investing your money in a crypto wallet is worth it as it is the only way to keep your crypto safe. 

 

Physical Crypto Wallet: Physical wallet is a kind of cold wallet and is also known as a paper wallet. Physical crypto wallets are the printouts of public and private keys. In order to receive cryptocurrencies with a physical wallet, you need to use public keys. To send digitalcurrency from a paper wallet you need to scan public and private keys. Paper wallets are offline like hardware wallets, therefore, you will get similar benefits from them. You can keep your crypto in a paper wallet without a second thought as they are secure, transparent and reliable. 

 

 

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