How To Safely Store Crypto

- 07 January 2022 07:00 WIB
Creating a crypto cold wallet can be a solution. (Unsplash/Ethmessages)
Creating a crypto cold wallet can be a solution. (Unsplash/Ethmessages)

JAKARTADAILY.ID - After buying digital assets, users will need to store them safely. This is because fiat money can be easily stored physically. At the same time, cryptocurrencies are distributed on the blockchain, a digital distributed ledger.

Due to digital currencies increasing popularity, more sophisticated attacks are becoming prevalent. The most common crime is centralized exchange hack, air-drop scam, and rug pull.

A Cryptocurrency Wallet is a digital space where users can store and manage their funds. When a Cryptocurrency Wallet is created, a public key and a private key are issued. Each Wallet can link to a public key, which serves as an address for sending and receiving funds. A private key is a password to access the Wallet.

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Cryptocurrency wallets are divided into two main categories: hot or online and offline or cold wallets. In most cases, the latter is better suited for long-term investors, while the former is best for frequent traders.

Crypto wallets vary from physical commodities to online software. However, they all have one thing in common: they allow users to store their assets quickly. This is typically done through the built-in exchange services offered by these platforms.

On the other hand, hot or online wallets are mainly known for their ease of use. They are typically linked to the internet and do not require a transition from an offline to an online transaction. When you create an account on a centralized exchange, you immediately have access to various wallets.

Hot wallets are typically not as secure as cold wallets due to their nature of being on the web. Hot wallets are relatively easier to hack. Meanwhile, a cold Wallet is entirely off-grid until the user connects it to the internet to make transactions. Typically, a cold Wallet requires a little bit of technical knowledge of blockchain.

When selecting a Wallet to store an asset, features such as two-factor authentication (2FA), face ID, and biometry are crucial for wallet security. An example of a Wallet having those features is HitBTC.

The HitBTC team has launched their own Wallet, branded with their own security and clean interface. By focusing on security first, the team can develop a solution to safeguard users while allowing for a secure and straightforward approach to handling digital currencies.

In Indonesia, there are some well-established crypto exchanges that also support funds transfer from Indonesian banks. One of the biggest crypto start-ups based in Indonesia is Toko Crypto. Toko Crypto users can connect their wallets to Binance, the biggest crypto centralized exchange.

Editor: Mukhtar Wijaya

Source: Coin Telegraph


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