Now you can secure your cryptocurrency assets much better than at the beginning of the decade. But investors still face many risks. They are threatened with concrete things: new fraudulent schemes are constantly appearing, and old ones are regularly reborn.
First of all, we are all human, and we have a tendency to make mistakes. In order to minimize the possibility of loss of funds due to the human factor, you need to correctly and competently work on the security of your cryptocurrency - “crypto-security,” as experts say. Forgetting the password from the wallet, or passing it to attackers, we risk flying into a pretty penny. That is why we and you should keep passwords in several places (both in memory and in a notebook or Word document). And in order not to transfer the password to those who are interested in it, never buy into e-mails in the style: “This is the administration of your stock exchange, give us a password so that we can protect you from cybercriminals.”
Such messages are rare because now the attackers have become much more inventive, so be vigilant. Also, never store large amounts on cryptocurrency exchanges. As much as you would like to believe in the safety of such storage - do not believe. Every day, produced hundreds, if not thousands, of attacks and hacking exchanges. There is no guarantee that the next “distribution” will not be the one you live on. Try to keep all the funds in your wallet, and only withdraw the amount you plan to operate with on the stock exchange.
Some simple rules that experienced users adhere to:
If you decide to convert your savings into a cryptocurrency (exchanged for electronic money) or to make money cryptocurrency, you have to choose a reliable wallet for storage. Without such a repository, the accumulation or use of an alternative monetary unit is impossible, because it does not have a material embodiment, it exists and develops in the open spaces of the Blockchain network. But what if the cryptocurrency is not one, but several? There are several solutions:
The second option is preferable because they allow you to manage in parallel the several types of digital money. It remains only to decide which wallet will be worthy of your attention. But then another question arises: which wallet is better and more reliable for storing cryptocurrency:
The last option is the least reliable, since you need to keep money on the stock exchange if you are going to trade cryptocurrency, and for long-term storage, it is still better to use your local wallets.
Such a wallet is downloaded from the site of its developer and installed on your personal computer. Unlike online wallets, they are more secure, reliable and convenient. There are 2 types of local wallets, thin and thick: Thin occupy much less space on the hard disk, and transactions are a little faster. Thick synchronization with the blockchain downloads the entire chain of network data, thus making you its full participant. A local wallet can be loaded with the operating system and be constantly connected to the Internet. Permanently connected one is also called “hot”.
The standard interface of the local wallet is divided into main parts:
Online wallets are provided by special service websites. Among them, there are exchanges, payment systems, the site of the creator, data storage service. You should choose popular online repositories with a good reputation. Among the online crypto wallets, there are some that support multiple currencies. They allow you to store different coins in one place. The option of using online wallets is perfect for novice users, since the latter, as practice shows, are not always able to ensure safe storage of coins as well as work with “light” or “thick” cryptocurrency wallets on your computer.
Depending on the method of storing private keys, online services for managing cryptocurrency are divided into hybrid and traditional ones. The first type uses separate storage of keys using a multi-signature, and in the second case, private keys are stored on the service, and only a backup copy is available to the user. The advantage of hybrid wallets is that the developers of the service do not have full access to the user's coins. Making payments from such a service requires a joint signature of the client and the service, because of which they are distinguished by a higher level of protection. We have outlined the 7 most popular online wallets which will be covered below.
Coinbase has gained fame not only as a service that provides online wallets to users but also as a payment gateway used by many retailers to get bitcoins in retail sales. Coinbase's “wallet” is a prominent representative of traditional online wallets with control of server-side security keys. However, despite this, the number of users of the service is constantly growing due to:
loud name of the company-developer; the possibility of direct selling and acquiring bitcoins;
the convenience of payment for goods, both in the sale and in the purchase;
successful operation in 24 countries around the world;
availability of a version for mobile devices on both operating systems: iOS, Android;
safety 2FA and the presence of "cold storage".
Cryptopay is an online wallet where you can easily store and spend your money in the form of bitcoins, euros, British pounds or US dollars. Cryptopay is a British company, established in 2013, and seeks to offer the best solution for payments.
Competitive advantages and features of the wallet:
Blockchain Wallet, developed by the same company, is the most time-tested and well-known online service for managing Bitcoin and other cryptocurrencies. It is actively used by more than two million people around the world.
The distinctive features of this online wallet include: simplicity and convenience of working online; excellent security level - SMS code and 2FA; high operator reliability; storing private keys and addresses on the servers of the developer in encrypted form; access to the coins the user gets after opening the Blockchain.info site in the browser; presence of the Russified interface; mobile applications for the two most popular operating systems - Android and iOS; the ability to export private keys.
Coinkite is a hybrid multi-currency web wallet developed by a well-known Canadian company, whose range of services also includes a debit card service and POS terminals. Coinkite offers instant sending of lightcoins and bitcoins via terminals, bank account or credit card in Canada and the United States, without charging a conversion fee.
This online wallet has the following characteristics:
BitGo online wallet has a high level of security. Each transaction requires two signatures, so bitcoins are more protected from malicious programs. The BitGo platform does not have full access to the user's coins: the latter has two secret keys, and the third is stored on the server as a backup. In addition, the use of "wallet" is possible after passing two-factor authentication. This implementation of the security wallet completely eliminates the need to export private keys.
Hive is a multicurrency online wallet that supports Lightcoin and Bitcoin. Access to the "wallet" can be obtained through any browser after entering a key phrase. A similar process takes place when a cryptocurrency is to be controlled from a mobile device, and the passphrase must be entered both when entering the wallet from the browser and through the Android or IOS application. This phrase actually acts as a key to the wallet, which is why it is important to take care of its safe storage.
StrongCoin began operations in 2011 and is one of the first online wallets for managing cryptocurrency. Developers classify the service as a hybrid, but in reality, it is not. Payments are processed in the browser, and the storage of private keys in encrypted form occurs on the server side. Private keys can always be exported.
The cryptocurrency sphere is not an easy world to understand and one cannot simply dive in it without getting any information and knowledge about it beforehand. The way to store your cryptocurrency is one of the most important things to know as it is the basis that has to be taken into account to ensure the safety of your savings. It may seem too complex at first and even scare away some people, but it’s always better to be safe than sorry, especially when it is about money, which always was and will remain one of the most stolen things by the it-thieves.