Blog: What's the best way to store cryptocurrency?
Where are cryptocurrencies stored? Storing cryptocurrencies raises many questions for many people. Today it is possible to store cryptocurrencies in many different ways. If you are considering storing your cryptocurrencies, you should definitely think about which storage solution suits best your needs. At its simplest, it is possible to store cryptocurrencies in the same place where they were purchased. Cryptocurrencies can also be kept in your own cryptocurrency wallet. In this case, they are entirely under your control. This text introduces the most common ways of storing cryptocurrencies.
One of the most common places to store cryptocurrencies is cryptocurrency marketplaces like Northcrypto. Keeping cryptocurrencies in a marketplace does not require any action from cryptocurrency investors. If you like, you can safely store your cryptocurrencies in Northcrypto. Storing cryptocurrencies in Northcrypto is entirely free and does not require any additional action from the user. All cryptocurrencies of Northcrypto customers are held in cold wallets that are not connected to the internet. Buying and storing cryptocurrencies is, at its simplest, very easy.
Strong exchange rate fluctuations are typical for the cryptocurrency market. Many active traders want to take advantage of the exchange rate fluctuations and need quick access to their holdings. Storing cryptocurrencies on a marketplace allows cryptocurrencies to be traded on a very fast schedule.
It’s good for everyone to remember that cryptocurrency marketplaces also manage your private keys, and your level of security is just as high as with the service you use. In practice, a private key refers to a password that allows cryptocurrencies to be managed.
If you own a larger amount of cryptocurrencies, it is useful to consider buying your own cryptocurrency wallet. In your cryptocurrency wallet, private key management is transferred from the cryptocurrency marketplace to yourself. This also comes with responsibility. There is always a risk of losing the private key in your own wallets, after which your cryptocurrencies will no longer be accessible. Every cryptocurrency investor needs to think about whether they have more confidence in the cryptocurrency market place they use or their own ability to manage their holdings.
When you start thinking about buying your own cryptocurrency wallet, you should look toward hardware wallets. A hardware wallet is also known as a cold wallet. A cold wallet means that after performing transactions, the device is removed from the machine. Because hardware wallets are kept offline, they are entirely immune to hacking and other threats familiar from online-based wallets.
The cryptocurrencies you own are always located in the blockchain. The cryptocurrency wallet is just an interface that allows you to manage your holdings. The primary purpose of the hardware wallet is to keep the private key safe from online attacks. In hardware wallets, the most significant risk is associated with storing seed phrases (passwords). These passwords allow access to the cryptocurrencies you own. When someone else takes possession of your seed phrases, they will also have access to your cryptocurrencies. If you believe you can keep your seed phrases in a safe place, a hardware wallet is the safest option for storing cryptocurrencies.
If you are interested in getting a hardware wallet, then there are two great options Ledger Nano and Trezor. Wallets from both manufacturers have gained popularity among those who have invested in cryptocurrencies. Finally, as a reminder, the hardware wallet should always be bought from the manufacturer’s official website.
In mobile wallets, the wallet is installed on the mobile device. Mobile wallets are applications that can be downloaded from phone app stores. Many cryptocurrencies also have their own applications designed for that cryptocurrency.
The absolute strength of a mobile wallet is that it is on your mobile phone. Mobile wallets are ideal for daily payments. Unlike a hardware wallet, mobile wallets are vulnerable to hacking. Although the mobile wallet is very convenient for everyday use, it is not advisable to store large amounts of cryptocurrencies. The mobile wallet should never be the primary storage of cryptocurrencies.
Preserving cryptocurrencies is very easy today. It is possible to store cryptocurrencies both at cryptocurrency marketplaces and in your cryptocurrency wallet. A hardware wallet is the safest place to store your cryptocurrencies. However, the user of the hardware wallet should take care to keep their passwords exceptionally carefully. If you want to use your cryptocurrencies daily, then mobile wallets offer a good alternative. If you use mobile wallets, you should remember that it is not worth keeping more cryptocurrencies in your mobile wallet than cash in your own traditional wallet.
Everyone who invests in cryptocurrencies must consider what cryptocurrency storage solution suits best for their own needs. Keeping cryptocurrencies on the cryptocurrency marketplaces can make sense if, for example, you do a lot of day trading and you want to change cryptocurrencies instantly. Also, if the amounts invested are really small, buying a hardware wallet is not always economically reasonable. In the case of larger investments, it is worth considering whether you trust more, the marketplace where the cryptocurrencies were purchased, or your ability to manage your seed phrases.Mikko Soon Cryptocurrency specialist