What is a Virtual Wallet for Cryptocurrencies like Bitcoin and Ethereum?
As you may already know, the world of digital currencies began to develop in January 2009 following the global economic crisis, and wallets and trading platforms began to emerge worldwide. Choosing a digital wallet is the most important step since it is where we keep our currencies.
The safest way to protect your currencies is with a cold wallet (a wallet that is not connected to the internet) such as Ledger/Trezor wallets, which are secure USBs that cannot be stolen without access to the device. It is important to keep your SEED to yourself, as it is a collection of 12-24 random words that grant access to your wallet.
In wallets like Trezor/Ledger, your SEED is provided when you connect your wallet to the internet for the first time. It is crucial to write down those 12-24 words in a safe place and not tell anyone, as it is the secret code to your wallet! In trading platforms’ wallets, you will not receive your SEED because your currencies are stored with the trading platforms, and in case of a breach, your currencies could be stolen. Therefore, our recommendation is to purchase currencies on global trading platforms such as Binance/Bybit, and then transfer them to your Ledger/Trezor wallet. Of course, you can also store hundreds of different currencies in these wallets, such as Litecoin (LTC), Ripple (XRP), NEO, and more.
In conclusion, our recommendation is to store your cryptocurrencies in a secure hardware wallet, also known as a cold wallet, despite the associated costs, as it is worth the personal security of your crypto assets. In this guide, we will publish additional ways in which you can keep your digital currencies safe. This information will help you make an informed decision on the best method of storing your crypto assets.
Cryptocurrency Storage Wallets: The Ultimate Solution for Securely Storing Your Digital Assets
A hardware wallet such as Ledger or Trezor is THE BEST option for secure cryptocurrency storage
The most secure way to store your cryptocurrencies is through a hardware wallet, as we’ve previously mentioned. These wallets are provided by leading companies and store your coins on a secure, encrypted USB that is impervious to virus attacks, and can only be connected to your computer when needed. Another advantage of hardware wallets is that the seed to access your wallet is in your possession, rather than being held by a trading platform. This is undoubtedly the safest way to safeguard your cryptocurrencies.
A hot wallet is an internet-connected wallet that allows for easy access to funds through various platforms, including mobile phone wallets, desktop wallets, and exchange platforms. While hot wallets like those on reputable exchange platforms like Binance allow for easy trading and accessibility, they are also more susceptible to hacking and malware attacks. It is important to exercise caution when using hot wallets, ensuring that your device is always secure and taking measures to protect your assets. Consider keeping a small amount of funds in a hot wallet for easy access but storing the majority of your assets in a secure, offline storage device like a hardware wallet.
Our recommendation for hot wallets is Binance, a global trading platform that also serves as a wallet for buying cryptocurrencies
If you are interested in having an additional recommended hot wallet on your computer, we suggest Electrum, a wallet that has been working well for several years and is highly secure. However, please remember the risks of storing crypto in a wallet on your computer. Here is the link to the official Electrum website for registration: click here.
A paper wallet is a cryptocurrency wallet that is primarily printed for people who purchase for the long term and do not frequently touch their Bitcoin/Ethereum, the risks of such a wallet are of course that paper can be lost or accidentally thrown away (from our experience, most people accidentally throw it away). The advantage of such a wallet is that it is not connected to the internet and only people with access to the paper can send/receive Bitcoin/Ethereum, of course, this is also a disadvantage. Recommendation – write down the SEED (the secret words you will receive) in several places.
To open a paper wallet, click here to visit the website.
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For information on the safest cold wallets for storing cryptocurrencies – click here