3 simple ways to protect your crypto-currencies

Speculation and money invested in cryptocurrencies attracts many scammers. Several solutions exist to secure your currencies quickly.

Cryptocurrencies are based on blockchain technology and therefore have a reputation for being secure currencies. Paradoxically, not a week goes by without the media talking about the sometimes astronomical theft of virtual currencies. These breakages most often take place during transfers or simply by trapping the owners.

If, like the majority of crypto holders, you are using an online exchange, then at the protocol level you are not really in possession of your coins. The platform holds your funds and the keys to transfer them. When you decide to withdraw the currency, you are asking the exchange to sign a transaction on your behalf.

However, all these services are online and assume that at some point a third party can disrupt the transfer. It is possible to transfer your crypto-currencies to your hard disk or USB keys intended specifically for this purpose. The last solution in terms of security is still the sheet of paper, but be careful not to tear it. Overview of simple methods to protect your crypto-currencies.

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The hot wallet (hot wallet)

The most accessible way is to download an application on the smartphone. Generally, the services offered are very easy to use and suitable for everyday use. They allow for example to scan an address in the form of a QR code to make the transfer faster. The apps on offer are often free, and those that specialize in security offer affordable plans.

The companies behind these apps use combinations of online and offline server storage to protect user wallets. Generally, the new tenors of crypto are also those who offer the most secure solutions.

However, you should be aware that the wallets and keys on an application are connected to the Internet and therefore more vulnerable to attacks. It is not recommended for large sums.

Some recommended apps: Coinbase, Binance, Zen Go, Trust Wallet, Exodus, Ku Coin, MetaMask.

The cold wallet (cold wallet)

A cold wallet is a physical wallet, completely offline, to store currencies. In the majority of cases, it is a USB key. Unlike secure applications, these tools are not connected and therefore less susceptible to attack. Currencies can stay hot on the key while there is panic on a platform. In addition, some companies offer an encrypted wallet to provide even more security. This is the most recommended solution, when the values ​​held are very high.

3 simple ways to protect your crypto-currencies
Ledger and Trezor, the two market leaders. // Source: Unsplash

The Cold Wallet requires a signature for each transaction to certify that it is indeed the owner of the currencies who is at the origin. Exchanges therefore take a little longer than on apps. Count around a hundred euros for a key.

On the other hand, if you lose your device, you will never get your funds back. You are always at risk of having your credentials stolen, so you need to make sure that you take the proper precautions to not have it stolen.

Some recommended brands: Ledger, Trezor, Coolwallet.

The paper wallet (paper wallet)

The world of crypto offers ways, still unimaginable a few years ago, to store money. You can indeed print an address to store your currencies. The QR Code drawn on the sheet is used to receive transactions. This wallet is obviously considered extremely secure, as it is not connected to the internet.

3 simple ways to protect your crypto-currencies
A paper wallet can take this form. // Source: Wikimedia Commons

To make the famous wallet, you have to go to a site that creates a randomly generated key. The best known are bitcoinpaperwallet.com or bitaddress.org. You must then click on the “Generate New Address” or “Generate Key & Print Paper Wallets” tab to create a new address.

To transfer your crypto again, you must go through an application, and therefore potentially take a risk.

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Goodbye bitcoin // Source: CC0/Mohammed Hassan for Pxhere

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