How To Keep Your Cryptocurrency Safe - Cold Storage
Nowadays, cryptocurrencies are gaining more popularity because they’re easy to trade and invest.
Also, cryptos are considered as precious assets. You know that if something is precious in this world then, it is hard to maintain that precious thing from getting to wrong hands.
As similar Security and Storaging cryptocurrencies are been a big issue from preventing precious cryptos from wrong hands.
Security vulnerabilities increase on the active internet connection, and we all know that most of the crypto activities we need active internet connection means there is a huge possibility of losing crypto.
Cold storing cryptos is considered as the best practice to store cryptos securely and away from the internet.
Let’s understand what is a Cold storing means in the crypto world.
What is a COLD storage of Cryptocurrencies?.
Simply cold storing crypto means store cryptocurrencies in offline.
Having a crypto coin means you’re the owner of a private key that represents your coin holding if you store that private key in an offline rather in online crypto exchange or wallet, that called as cold storage of cryptocurrency.
If you don’t know what is Private and Public key you can read this.
Cold storage is one of the best method store cryptocurrencies safely, and it is one of great method to hold a large number of cryptocurrencies for the long-term.
It can keep the money away from the webserver to make it safe.
There are several ways you can cold store your crypto holdings.
Methods of Cold Storage.
Physical Coins are the new way to store your crypto holdings in physical coin form.
You can order these coins online.
Here you get the physical coin that is protected by the tamper-evident hologram, make a sure that hologram is intact because the “private key” is on a card embedded inside the hologram.
Public Key is visible on the outside of the coin to receive funds.
But remember in physical coin private keys are generated by third-party whom you purchased the coin, that is why I recommend you to add 2-factor authentication if you have purchased a 2-factor item, the private key is encrypted and will need to be decrypted using your original preselected passphrase before you can redeem the funds.
These types of Physical Coins are best for Gifting purpose.
These are physical wallet where you can store your cryptocurrencies.
They are available in different forms, but the most commonly used is the USB stick.
Hardware wallets can store more than 1000 cryptocurrencies in a minimal digital interface.
Although they are free from frauds and hacking, yet they are not entirely infallible.
Compared to all crypto cold store device hardware wallets have cost you more money, but if you prioritise security then spending the amount in hardware wallets is worth it.
Paper wallets are the easiest way to store crypto in offline.
Here public and private keys printed on a piece of paper which you can store.
These printed keys are in the form of QR codes.
You have to do scanning every time you need to make a transaction or exchange your crypto.
You can get paper wallets almost for free of cost, but always remember to store the printed paper securely because paper can easily steal, or manipulated.
If you have the confidence and experience in storing crypto, then paper wallets are the best option for you.
Desktop wallets are clients that only exist on your computer.
They can be used to export files of encrypted private keys in an offline environment.
In these pieces of software, the private keys are stored offline on your machine.
But while receiving or sending funds through them, you are online.
Pros and Cons of Cold storage.
Major pros of cold storing cryptos:
#1 Cold storing crypto is the best option to hold cryptocurrencies for a long-time securely.
#2 You don’t have to worry about internet connection when you store crypto holding in cold storage.
Some cons of cold storage:
#1 To store crypto in cold storage facilities, you need to have some technical knowledge and experience about cryptocurrencies.
#2 When Cold storing cryptos there is a possibility of external damage caused by the carelessness, but it can be recovered if you have a recovery seed and Beginners may find it difficult to set up also It is not ideal for quick, day-to-day transactions compared online exchanges.
Now storing crypto holding in online platforms like exchanges or wallet facilities considered as not a safe option, because many security flaws can be found on online platforms.
Also, in history, online crypto holding platforms are easily being a victim of huge hacking incidents.
However, if you’re new to the crypto world or you trade cryptos on daily basis then, the online platform is the best and easiest option for you.
If you think Cryptos as the best investment option for the long term then, you can go with cold storage option to store cryptos securely for a long time.
Now tell me, which cold storage method you chose to store cryptos in the comment.
If you have used any cold storage method, share your experience in the comments.cr
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