Cryptocurrency, if you didn’t already know, is an anonymous online currency system that doesn’t run through banks and doesn’t hold your details. There are lots of different cryptocurrencies out there; Bitcoin is the most well-known. Before jumping the gun and investing your hard-earned cash, there are lots of considerations, such as what the current exchange rates are to how secure your assets will be.
Once you’ve learned the pros and cons of investing your money, you need to make sure that your money is safe. As this is a digital currency, it is prone to attacks from cybercriminals and people have been known to lose their entire digital wallets. This article will outline some of the best options for storing your cryptocurrency.
A Note on Anonymity
As mentioned earlier, there are lots of different cryptocurrencies out there to invest in. This article will primarily focus on Bitcoin. With it not being regulated by the banks, it doesn’t require any personal details. This being said, if you use it to buy anything deemed illegal then authorities can trace the sale; unless you are 100% sure your investment can not be traced to you at your end then this wouldn’t end well and isn’t worth the risk. However, there are new forms of cryptocurrencies with anonymity in mind.
- Suitable for beginners.
- Hot wallet (connected to the internet) – could be vulnerable to attacks.
- Simple interface with the newbies in mind – includes support that others don’t offer.
- Allows in-wallet exchange between other cryptocurrencies.
- Closed source – this means you rely on Exodus to make sure your money is safe. Some advanced users may find this goes against the Bitcoin ethos of open source and public visibility.
- Suitable for advanced users interested in Bitcoin – no customer support.
- Hot wallet so could be vulnerable to attacks
- Not much in way of a user interface but excels in what it does.
- Open-source – allows users to customise their transaction fees.
- Ability to choose your security level.
- Best for mobile users – can be confusing to a newcomer.
- Hot wallet.
- Supports Bitcoin, ETH, ERC-20 tokens, and FIO tokens.
- Open-source wallet.
- Users can set how long they are willing to wait for transactions as well as set custom fees.
- Ability to store Bitcoin in offline hardware whilst still seeing their balances in the user interface.
Ledger Nano X
- Best hardware wallet.
- Costs $119 to purchase.
- Cold wallet – not connected to the internet.
- Open-source with customer and community support.
- USB-like device – connects via USB or Bluetooth (could leave you open to cyberattacks)
- Can recover Bitcoin if lost (using your seed).
- Includes Ledger Live App – allowing you to buy and exchange cryptocurrency.
Although this is by no stretch an extensive list of all available crypto-wallets, you should have a good idea of where to start to get your cryptocurrency secure. There are always going to be vulnerabilities where digital devices and the internet is involved, but you can take steps not to offer your assets on a cybercriminal’s silver platter.