How To Keep Your Crypto Safe from Hackers In 2021?
The recent bitcoin rally has triggered an influx of investors into the digital asset market. But to invest successfully in cryptocurrencies, you need to store them properly. Unfortunately, many of the investor guides available online contain outdated or misleading information about cryptocurrency wallets. In this article, we answer your question: How To Keep Your Crypto Safe from Hackers In 2021.
Why you shouldn’t keep cryptocurrency on exchanges
An exchange is necessary for trading activity. And this is a very common mistake among beginners: buy cryptocurrency, transfer it to a cryptocurrency exchange deposit, trade, get disappointed with it (because there are no trading skills), and leave the crypto stored on the exchange. It’s the same as keeping money in the bank. When money is in a bank account, it’s not your money – it’s the bank’s money, and it decides how it’s handled. The bank has an obligation to pay it back to you, but it’s not essentially your money.
As a rule, crypto-exchanges found a significant cash gap, which was skillfully glossed over in public data. Exchanges like to get into users’ money, drawing trading volumes. At the expense of some clients the withdrawals of other clients were ensured. This is a pyramid scheme, which is used by many exchanges. When it comes to large assets, you should choose offline storage. Hardware wallets such as Tezos and Ledger are suitable for this purpose. The safest option is hardware offline storage with multi-signatures.
Hardware wallets are more for storing cryptocurrencies of novice investors. Professionals do store them on their own in a secure medium, often with no access to the network. This way is more reliable. That said, you should not use exchanges to store digital assets. On no account should you store your funds on centralized exchanges. It always leads to unfortunate results.
The issues of digital security in general and cryptocurrency storage in particular are becoming more and more relevant, and users will probably see technological breakthroughs in this area in the next couple of years. For now, we choose from what we have, and we always have to make that choice ourselves. It is impossible to unambiguously recommend only a hardware wallet or only an online service: the main selection criteria should be internal beliefs and personal preferences of the investor, the volume of investments and his lifestyle. For example, if the choice is between cheap Chinese devices, then it is better to temporarily prefer online services and save up to buy a normal gadget.
When it comes to storage, peace of mind is important. If an investor can sleep better, knowing that the tokens are stored on a physical medium under his pillow, it is better to choose hardware wallets. In this case, the user must accept the risk of possible loss of the device for various reasons.