How to store crypto token

Cryptocurrencies are on everyone’s lips and are slowly becoming acceptable. This is because more and more consumers are getting involved in mining. However, probably one of the most important points should not be neglected, i.e. the security of the earned currencies. And this is exactly where the so-called wallets come into play. In this post we highlight a few types of wallets available to store the tokens safely.

Bitcoin wallet

How to store crypto token at all?

Cryptocurrencies are not a commodity to store at home on the hard drive – they can’t be stored on a crypto exchange either. The obtained coins or token exist solely as an entry in the blockchain with an accompanying owner’s address. The only thing you can actually really own physically or digitally is access codes to the owner’s address, called “wallet”. You can imagine it like the digital counterpart of an actual wallet, just that it is secured with a virtual key. 

How to access the wallet

You need a public and a private key to access the crypto coins or token in your wallet. If you lose it, you can no longer gain access to the crypto currency. 

The private key acts like a PIN for the debit card or online banking. Of course, users must not lose this key. Nor must it fall into any thief’s hands. However, if you store this key on a computer unsecured, you could fall victim to a hacker attack. 

Let’s take a look at the different wallets including their pros and cons

ColdWallets

How secure the wallet is depending a bit on how you saved your access codes. The coins are like handling digital cash. For larger amounts of cryptocurrency, the so-called “cold” wallets are suitable – those are wallets that are not connected to the Internet and therefore are beyond the reach of hackers, the digital pickpockets.  Such wallets would be hardware wallets such as Nano Ledger S or Trezor. Hardware wallets are basically USB sticks on which the crypto keys are deposited. These usually have a recovery feature.  

Trezor

Another type of cold wallets are paper wallets. These should be well hidden, and no mistakes should be made while creating them. Instructions on how to create a paper wallet can be found here:

However, paper wallets only store cryptocurrencies, for transactions such as payments you need another The only. If the paper is lost or destroyed, you will no longer be able to access the wallet. In addition, it is quite complicated to enter the keys manually each time, even if there is now a small workaround using QR codes.

HotWallets

Alternatively, there are also”hot” wallets, which are offered by various online services and are always accessible via the internet. This makes this type of storage a lot more convenient, but you also need to trust the respective provider. Because if they don’t ensure strong security measures, hackers can empty your wallet. Hotwallets are therefore only recommended for the (interim) storage of small quantities of tokens.

Software/ Mobile Wallets

Software or mobile wallets, on the other hand, are stored locally but can be accessed from the Internet. These are programs that are installed on PCs or mobile devices and manage public and private keys as well as transactions. These local wallets are definitely The only than hot wallets in terms of security, but they are only restricted to the individual device. If they break or get lost, the wallet is also gone.

Beware of scam or loss 

Remember: The access codes to your own wallet may never be communicated to anyone. Requests to do this is always scam – often with the note that the wallet needs an update.  

Use your access codes responsibly! Lose the access code, the coins will remainin accessible to you and to others forever.  

If you want to know more, visit www.azultec.de 

— Related articles