How to store crypto safely?

What is the best way to store cryptocurrency? To do this, you should create a special wallet. This way, you can protect your assets from theft. Let's consider in this article what cryptocurrency wallets are, how they differ, and which one is the best.

What is a crypto wallet

A cryptocurrency wallet is a software or hardware device that allows you to store, send, and receive digital assets. Access is provided using unique codes. If you want to exchange your tokens for Mason-ex, you will need to enter a public key to receive digital assets. A private key is needed to sign transactions and access the wallet.

Crypto wallets are divided into several types depending on their storage method and connection to the network. There are hot wallets:

• desktop;
• mobile;
• online wallets.

Moreover, desktop wallets can be thick and thin. They differ in the number of downloaded blockchain chains. Thick ones are regularly synchronized, updated, download the entire chain and are considered reliable. Thin ones store data on third-party servers and download only part of the chain. 

There are also cold wallets:

• paper;
• hardware.

Paper wallets are a regular sheet with a printed key in the form of a QR code. Pointing the camera opens a site where there is data on the keys. 

Hardware wallets are considered the safest today. Such wallets are similar to USB flash drives. The drive can store different tokens. It is impossible to hack a hardware wallet, since the private key is built into the device itself.

Each type of cryptocurrency storage has its own characteristics, advantages and disadvantages. Depending on the needs, traders choose their own option. 

Features

Let's consider the nuances of using different types of crypto wallets:

1. Online wallets are available through a web browser. They are stored on the service provider's servers and are accessible from any place where there is Internet access.
2. Mobile wallets are applications for smartphones that allow you to manage cryptocurrency from your device. Usually convenient for daily use and for making quick transactions.
3. Hardware wallets are physical devices specially designed to store cryptocurrency in an offline and secure environment. More reliable in terms of security, since the keys are stored offline.
4. Desktop wallets are programs installed on a computer. They allow you to easily manage cryptocurrency from a PC. One of the unpleasant moments is that you always need to have a computer at hand to use them.

When choosing a wallet, make sure it is secure, convenient and functional.

How to make a choice

Can you store cryptocurrency on a flash drive? Yes, but you need to consider the following points:

1. It is important to ensure that the flash drive with the cryptocurrency is stored safely. We are talking about encryption or even about using specialized secure storage for backups.
2. When storing cryptocurrency on a flash drive, it is recommended to make several backup copies of private keys or wallets on different media.
3. Pay attention to the quality and reliability of the device. It is recommended to use branded, expensive flash drives.
4. Remember to regularly update the security of the flash drive and its contents. This will help ensure the safety of your cryptocurrency.

Storing cryptocurrency on a flash drive is possible, but requires taking some measures to ensure the protection of your funds.

Differences between wallets

When choosing a way to store cryptocurrency, traders ask themselves - how does a hardware wallet differ from a regular one? Let's consider everything point by point:

1. One of the main differences is the level of security. Hardware wallets store private keys offline, in a secure device. This makes them less vulnerable to hacker attacks and online threats, compared to regular wallets, which can be hacked.
2. In a hardware wallet, private keys are stored inside the device and never leave it. This provides an additional layer of security, as private keys are not at risk of being compromised during online transactions, as can happen with regular wallets.
3. Accessing funds usually requires physically connecting the device to a computer. The device itself is protected by a PIN code or other measures to prevent theft of assets.
4. Hardware wallets have the ability to support various cryptocurrencies and tokens, making them a versatile and secure way to store cryptocurrency.

Hardware wallets provide a high level of security and control over cryptocurrency funds. Large traders prefer this method of storing digital assets.