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