Types of Wallets for Crypto Assets and Security Measures to Take
If you are new to cryptocurrency, knowing how to buy, sell, trade, and use your crypt asset is not enough. Every user of cryptocurrency should also “protect” their asset against physical and digital threats. But first, you should learn different type of wallets, and when to use them.
Hot Wallets (Online Storage)
Hot wallets are the first form of storage which is dominating among users. A hot wallet is considered as a type of service offered usually by crypto exchanges such as coin base, binance, and more. The service includes security features that protect your money against hacking. But online security is not enough, because we all know that hackers evolve. Once they cracked into the system of your hot wallet, hackers stealing your crypto assets is not controllable. They have ways to save money on electronics and find their way into any security system. It is best to use hot wallets for quick transactions only. But hot wallets are not for long term storage.
Think of paper wallets as a certificate. Unlike hot wallets, it cannot be hacked. Paper wallets contain printed public and private address. It’s a piece of paper containing barcodes which translate to coupon codes on products and coin value. The downside of using paper wallets is the possibility of losing it or damaging it. What if you lose this paper? Nothing can ever bring it back to you. So, if you are conservative in storing your crypto assets, laminate it and keep it in a vault.
Most traders will recommend having a hardware wallet from the direct supplier. Hackers won’t get to your hardware wallets because it is online. However, proceed with caution in buying a hardware wallet. Make sure it is sealed and authenticated. Don’t buy a cheap hard wallet with a discount from an unknown supplier. It is also best to shop online for hard wallets that have advanced security features.