How to store crypocurrency?
Cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchains to enable users to send and receive digital currency. If you want to use cryptocurrencies, you will need to have a digital wallet. Unlike traditional wallets, digital wallets don not store currency, they rather serve to record transactions on blockchain. Cryptocurrency wallets are mostly divided into two groups – hot and cold wallets. While the term hot wallet refers to wallets that have internet access, cold wallet implies that the private key is kept on a device that is not connected on the internet, except when the transaction is ini progress.
There are 5 types of wallets:
Online – hot wallets located on clouds (security rating 1)
Online Wallets are located on clouds and thus pose a high risk of hacking. We recommend them for short-term storage and for storing smaller amounts of cryptocurrencies. Blockchain.info. wallet guide can be seen here.
Mobile hot wallets (security rating 1.5)
Just like Desktop Wallets, they bear the risk of losing, failing, or being hacked, therefore we also recommend them for short-term storage and keeping smaller amounts of cryptocurrencies. You can see Mycelium Wallet Guide here.
Desktop Wallet – hot wallets on computers (security rating 2)
Desktop Wallets are not the most reliable, given that computers are connected to the internet, but their convenience is based on simple usage. We also recommend them for short-term storage and for storing smaller amounts of cryptocurrencies. You can see our guide how to open and execute the first transaction via Exodus Wallet here.
Paper cold wallets (security rating 2.5)
Wallet that contains deposit address and private key. One of the safest ways for storing cryptocurrencies is to store a printed paper wallet in a safe location from theft, fire or other threats. Suitable for long-term investments or “HODLING”.
Hardware cold wallet (security rating 3)
The safest way to store cryptocurrencies and particularly suitable for long-term storage. The most famous hardware wallets are Ledger Nano S, Trezor and KeepKey. You can see the Ledger Nano Wallet Guide here.
Wallet Security Rating:
1 – Low security
2 – Medium security
3 – High security
Disclaimer: All opinions regarding cryptocurrency wallets and their security are based on their objective characteristics and subjective estimates made by FIMA Plus employees. FIMA Plus Ltd. does not represent any of the aforementioned cryptocurrency wallet manufacturers.