How To Store Your Digital Assets Cryptocurrencies & Keep Them Safe
Mar 21, 2018 Posted / 3449 Views
It’s like a daily topic that you hear of someone virtual coins got stolen, someone hacked them, someone got scammed. Whatever the reasons are it's very abhorrent to lose your investment in a silly way. If you do not want to lose yours that easily, always use a better wallet. Now the choice of wallets is not that easy.
If you own large amounts of virtual coins, better not leave it in exchange sites, because of the risk of hacking.
There are two ways other than online exchange based wallets that are more secure and easy to use:
These are considered as the most important part of maintaining the wallet security. Anytime a new wallet is set up, it usually comes with a unique recovery seed composed of 12-24 randomized words. Now, these are recovery phrases that can help you recover your account in case of an emergency. They are the only way to regain your account. It's always advisable to store your crypto wallets recovery phrase and keep it somewhere safe.
The best way is to to write it down on a paper. It is completely not advisable to store it in online notepads, online cloud storages because of them being hacked and the hacker getting access to your assets.
The buying of storage devices for the sole purpose of storing only seeds is also recommendable only if you do not use that device for any other cases. But the major drawback is that data failure and theft of storage devices.
If you have a large number of virtual coins under your sleeves, then invest on Hardware Wallet. These are special devices designed to hold the keys privately on the device. They don’t save keys to your wallet remotely or in PC. So even if you're the computer is compromised the keys will remain safe. These come with a special card on which we can write all the seeds information for the safety of the device. One important constraint is that this device must be in your possessions to send any digital currency.
Two most popular hardware wallets:
The integrity of any wallet depends on the safety of the recovery seeds if we exclude silly mistakes from our end. Whenever you are presented with the recovery seed write it down and keep it somewhere safe immediately. Maintaining a diary is a most feasible way to handle and store critical data.
Moreover, make a copy of that recovery seed because a natural calamity can strike anywhere and anytime. Now its a very bad idea of snapping the recovery phrase and storing it online, or if you are extra cautious, you can remember the whole phrase(Just Kidding).
Now there is also one more method of storing recovery seeds that is via cold storage companies like Cryptosteel. They provide custom and secure steel plates with engraved recovery seed phrases on it. In some cases, it makes sense to record your recovery key in a will for your family members.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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