Cryptocurrency is the hottest asset and when you have any digital asset the first thing should come to your mind is security.

For hackers, cryptocurrency is the major target so it’s very important to know how to secure it.

Some major points to know:

  1. If you don’t control your private key, you don’t control your assets.
  2. When trading always use 2-factor authentication.

Types of wallets with its safety score:

  • Paper wallet (9/10) – Paper wallet is one of the safest wallets. It is a document that contains copies of the public and private keys that make up a wallet. It is free and requires a deep knowledge to make it. It is an offline wallet so the chance of hacking is almost negligible.

  • Hardware wallet (8.5/10) – Hardware wallet is USB device which stores your private keys. It is also an offline wallet and is having a lesser chance of getting hacked. It is user-friendly but is costly, ranges from $60 to $120.
  • Software wallet (5/10) – Software wallets can be a desktop, mobile or online. It is free but has a huge possibility of getting hacked and can also be affected by a virus.

Ledger Nano S - The secure hardware wallet

List of software wallets:

  • Mycelium
  • Wirex
  • Xapo
  • Jaxx
  • Copay
  • Exodus

If you are holding a large amount of cryptocurrency so my recommendation is to store in hardware wallets.

Rule 1: Never keep your coins in exchanges.

Rule 2: Never forget rule 1.

Categories: Beginner

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