Cryptocurrency and its safety cannot be overemphasized, as they are key factors in making sure your crypto investments are safe. Today we will be finding out where the safest place to keep your cryptocurrency is.
The cryptocurrency ecosystem has suffered several hacks since its inception. The cryptocurrency exchange Liquid was hacked in August 2021, losing over $97 million worth of crypto. Another $30 million in Bitcoin and Ethereum was taken from the American exchange Crypto.com in January 2022.
You can check out this great article on Crypto.com Exchange review.
With all these attacks against crypto investors, it’s only natural for you to ask, “Where is the safest place to keep your cryptocurrency?” This can help you beef up your digital security and protect your crypto from being stolen.
What is Crypto Safety?
Crypto Safety is the act of maintaining and carrying out safety measures and practices in order to protect your crypto investments from scammers/hackers. Crypto can be purchased, stored, and used safely so long as the user follows some of the best crypto safety tips.
You can see some of our crypto safety tips by checking out this great article on Safest Cryptocurrencies to Invest in.
And following those same crypto safety tips, crypto can be invested in safely. However, when it comes to investing, most experts recommend that crypto be kept to a relatively small percentage of your invested assets. In other words, while it is safe to invest in cryptocurrency, you should not only invest in cryptocurrency.
Experts recommend diversifying your portfolio with stocks, bonds, ETFs, real estate, and cryptocurrency. Of course, no investment is risk-free. As we saw during the 2008 market crash, even seemingly safe investments such as real estate and stock index funds are vulnerable to market crashes, and cryptocurrency is no exception.
Where is the safest place to keep your Cryptocurrency?
If you’re just starting out and you’re wondering where is the safest place to keep your cryptocurrency, well you’ll need a crypto wallet to get started. A crypto wallet is a tool that enables users to interact with blockchain networks. They are required for receiving and sending cryptocurrencies.
Cryptocurrency wallets, unlike traditional wallets, do not actually store your funds. Instead, your coins are stored as data in a blockchain system, and the wallet is used to access them.
You can check out this great article on How Crypto Wallet works.
In addition, all crypto wallets include a public and a private key. A public key is used to generate wallet addresses, which enable you to receive payments. A private key, on the other hand, can be viewed as a digital signature that allows you to verify transactions and control the coins associated with the wallet.
Users have three options for cryptocurrency wallets: software, hardware, and paper wallets. Wallets, on the other hand, can be classified as hot or cold, based on how they operate.
Hot wallets are wallets that are connected to the Internet and are thus more vulnerable to hacking attacks. Cold wallets/storage are wallets that generate keys without access to the Internet, making them extremely resistant to cyber-attacks.
You can check out this great article on Crypto Cold Storage Explained.
Hardware Wallets are the most secure of the three types of wallets discussed previously. They are widely regarded as the most secure way to store your cryptocurrency. They are cold wallets, which are physical devices that store and generate keys without any Internet connection.
These keys are generated and stored in the device using random number generation (RNG) algorithms. Because of their limited accessibility, hardware wallets are not as convenient as the preceding options, but they are the best way to store large amounts of cryptocurrency. The following are some of the best hardware wallets to consider:
Ledger Nano X
The Ledger Nano X is a hardware crypto wallet from Ledger that helps you manage, exchange, and buy various types of cryptocurrencies. It accepts over 5500 different coins, including Bitcoin, Ethereum, Litecoin, Dogecoin, and others.
The Ledger Nano X is a cold storage wallet that is available worldwide. The dimensions of this crypto hardware wallet device are 72mm, 18.6mm, and 11.75mm. It is constructed of brushed stainless steel and plastic. It has a Lithium-ion 100 mAh battery that provides 8 hours of battery life.
This Bitcoin wallet provides connectivity using a USB-C cable and Bluetooth. It has a large knowledge base and offers email and live chat support. It supports stacking and blockchain support for the ERC20 token. It also includes the Ledger Live software, which allows you to check your cryptocurrency balance and send and receive currencies.
Trezor Model T
The Trezor Model T is a cryptocurrency hardware wallet that allows you to access third-party exchanges such as CoinSwitch and Changelly through the Trezor internet interface. It is one of the best hardware crypto wallets that offers a touch screen feature for new cryptocurrency traders, making it easier to use than the previous model.
The Trezor Model comes with a USB-A and a USB-C cable. You can connect a smartphone or a desktop computer to this cryptocurrency wallet.
It is one of the best hardware wallets, supporting over 1800 coins such as Ethereum, Bitcoin, Ripple, HEX, and others. It is a cold wallet that is widely supported worldwide. It includes Exchange and is compatible with Linux, Android, macOS 10.8+, and Windows 10+. It measures 64 mm x 39 mm x 10 mm.
Staking cryptocurrency is not supported by these hardware wallets. You can get assistance from their wiki page, FAQ section, or by sending an email directly to customer support.
CoolWallet Pro is a hardware wallet designed for DeFi that allows you to store your cryptocurrencies offline. It is a safe device with strong security features and a built-in fingerprint scanner. This hardware wallet can be used to store Bitcoin, Ethereum, Litecoin, ERC20 tokens, and other cryptocurrencies.
This cold crypto wallet easily interacts with Dapp, Defi, and NFT. It is water-resistant and made of metal. It is powered by a lithium-ion battery that can last for several weeks on a single charge.
BTC, ETH, LTC, XRP, XLM, BNB, USDT, TRX, Tezos, Cardano, ETH 2.0, and ERC20 tokens are all supported. It is 85.6mm x 54mm x 0.8mm in size and weight, and it supports Incorporated Exchange.
Coolwallet Pro is made of metal body material. It offers mobile apps for both Android and iOS. It provides support for stacking for Polkadot (DOT), Cosmos (ATOM), and Tron (TRX). It is shipped to every country.
One of the best hardware wallets has multiple layers of cold storage security. Its power components are controlled by five processors. It has a comprehensive knowledge base, live chat, and email chat.
Is Crypto Safe?
Investing in cryptocurrency can be considered extremely risky when compared to other asset classes such as stocks and government bonds. While cryptocurrencies are widely regarded as legal throughout Europe, many aspects of the technology remain unregulated or are subject to shifting regulations.
Fluctuating regulations can make crypto markets more vulnerable to volatility, as we saw in the summer of 2021 when China’s crackdown on crypto-related activities coincided with a drop in Bitcoin’s price. With so many governments around the world debating how to respond to cryptocurrency’s rise, there are a number of factors that could contribute to cryptocurrency’s volatility in the future.
Another source of cryptocurrency’s general volatility is the fact that it is still relatively new, and investors may not know what to make of it just yet. Because cryptocurrency lacks the same historical proof points as other asset classes, such as stocks, it may be more vulnerable to the large price swings that accompany shifting investor sentiment. Some cryptocurrencies are more prone to this than others, but even Bitcoin, the oldest and largest cryptocurrency by market capitalization, is notorious for wild price swings.
When investing in cryptocurrency, you can reduce your risk by not purchasing more than you can afford to lose. There is still a non-zero chance of any crypto asset plummeting in value on a given day, so exercise caution and consider a diversified portfolio of investments with crypto playing a smaller and more speculative part.
Where is the safest place to keep your cryptocurrency?
Investing in cryptocurrency can be risk-free if you follow best practices for keeping your holdings secure. It’s critical to remember that no investment is guaranteed, and cryptocurrency can certainly lose value. That being said, it’s up to you to determine where the safest place is to keep your cryptocurrency using some of the outlined cold storage provisions.
Cryptocurrency is more of a “high-risk, high-reward” investment. The potential for high returns is high, but crypto markets are generally more volatile than other assets. Cryptocurrency carries its own set of risks. However, investing in cryptocurrency as part of a diversified portfolio of assets can be a wise decision.
Finally, it is up to you to determine whether cryptocurrency is compatible with your risk profile and overall investment portfolio, as well as the safest places to store your cryptocurrencies away from hackers.
Disclaimer: Please note that this article does not provide investment advice or recommendations. It’s essential to understand that every investment carries inherent risks. Readers are encouraged to conduct their own thorough research before making any financial decisions.