Acquiring crypto currency is one thing, storing it is quite another. To help you do just that, Team Versity explains how to store your crypto currency securely!
It's generally considered safer to store your crypto currencies on a wallet than on an exchange platform, because there are a number of risks involved. To help you understand them better, we've listed them below.
When you store your crypto-currencies on an exchange platform, you don't own the private keys associated with your digital assets. Private keys are required to access and transfer your funds. In contrast, when you use a wallet, you are the sole owner of your private keys and have total control over your funds.
Crypto-currency exchanges are prime targets for hackers looking to gain access to users' funds. There have been numerous cases of exchange hacks in the past, resulting in the loss of millions of dollars of crypto-currency funds. By keeping your digital assets in a wallet, you significantly reduce the risk of losing your funds in the event of an exchange hack.
There's always a risk that the exchange on which you've stored your crypto-currencies will go bankrupt or close down. If this happens, it can be difficult, if not impossible, to recover your funds. By keeping your digital assets in a wallet, you completely eliminate this risk!
Exchange platforms are required to comply with anti-money laundering and anti-terrorist financing laws and regulations. This means that your personal and financial data may be collected and shared with third parties. By keeping your digital assets in a wallet, you retain full control over your personal and financial information.
But don't panic! To mitigate these risks, there are several solutions for storing your crypto-currency securely. We'll explain.
These physical wallets resemble USB sticks and are considered one of the most secure solutions for storing crypto-currencies. Hardware wallets store your private keys offline and require physical authentication to access your funds.
Desktop wallets are software programs that can be downloaded and installed on your computer. These wallets store your private keys locally on your computer, giving you total control over your funds. However, you need to ensure that your computer is secure and free from malware that could compromise their security.
Mobile wallets are applications that can be downloaded and installed on your smartphone. These wallets are convenient because you can access your funds anytime, anywhere. However, you need to make sure that your smartphone is secure and that you are not likely to lose or damage your phone.
Online wallets are crypto-currency storage services that can be accessed via the Internet. These wallets are convenient because you can access them from any Internet-connected device. However, you need to exercise caution as these wallets are vulnerable to hacking and online attacks.
In summary, there are various solutions to ensure your crypto currency is stored securely. Be sure to research these different methods thoroughly before making the choice that's right for you! The Versity team remains at your disposal to answer your questions live at AMAs or on our social networks such as Telegram.
And for all our other web3 tips, check out our blog !