Where can I store cryptocurrency?


In the previous text we understood what cryptocurrency is and how to use it. But what do you store digital money in? At PokerStars, or any other room, users have a checkout. So does Skrill, Neteller, PayPal. But where do you keep all these bitcoins, ethereum, and other altcoins?

What kinds of cryptocurrency wallets exist?

It's been 13 years since bitcoin first appeared. In that time, cryptocurrencies have come a long way and a significant digital infrastructure has developed around them. Technology now offers 5 wallet solutions at once:

1. Software-based. Saves all virtual money on your computer's hard drive. Reliable enough and secure way to store cryptocurrencies. The key disadvantage is that it takes about 150 GB on your PC to record information about a single digital currency. If you use several types of crypto at once, you'll need almost a terabyte of hard drive.

One option for hard drive software wallets

2. Online wallets. Digital currency is in the cloud service. The obvious lack is the high probability of hacking and loss of all wallet contents. But it is available not only from your computer, but also from mobile devices.

3. A separate devices. All information about virtual money is concentrated on a separate specialized device. It is used exclusively for cryptocurrency transactions. This solution can be compared to a simple calculator - the scope of its application is extremely narrow, but it cannot be hacked either. Protection is the main advantage of this device. The disadvantages are also on the surface - the device must be constantly carried with you and remember the pin code.

These are not high-tech pregnancy tests, but hardware wallets for storing cryptocurrency

4. Mobile applications. Similar to online wallets, but working exclusively on smartphones and tablets. Less reliable because of this. The probability of losing money is higher if the device is lost or stolen.

5. Paper Wallets. A piece of paper with handwritten information. By "information" we mean both public and private keys. The first one is similar to an email address. The second is used at the moment of payment to confirm the transaction. A physical wallet is extremely reliable, but the loss of the record will make the funds in the account inaccessible. We do not recommend printing out the data - the information will remain in the memory of the device, and it can become available to third parties.

Sometimes cryptocurrency wallets are divided into hot and cold. "Hot Wallet" requires constant access to the Internet. "Cold Storage", on the other hand, only needs to be connected to the internet for a few seconds to make a transfer. Hot wallets are much more convenient, but less reliable. They include online wallets and mobile applications. Cold wallets are separate devices. In the entire history of cryptocurrency use, there has never been a single "Cold Storage" hack.

What about exchanges?

In terms of convenience, exchanges that work with both cryptocurrency and fiat money are advantageous. There you can buy bitcoins or other digital money for dollars, euros or other national currencies. Choose the right exchange responsibly, because there have been unpleasant episodes before. First of all, we are talking about MT.Gox, one of the largest crypto-exchanges in the early 2010s. In 2014 the exchange was hacked and about 850,000 bitcoins were stolen. After the news of this, the bitcoin rate dropped by half.

There were no more stories of this scale with the cryptocurrency, but it is strongly advised to read user reviews carefully before registering on the exchange. We recommend to pay attention to Binance.

You can buy the new-fangled NFTs, too. But is it necessary?

At the moment, the exchange ranks first in the world in terms of the volume of digital currency transactions. This is not only a place to trade, but also a complete infrastructure with wallets, training and other useful tools for novice users of cryptocurrencies.

If you pay for any product with cryptocurrency, we give you a 5% discount. And to keep up to date with the shop's promotions and offers, subscribe to our Telegram channel.