What’s the safest way to keep cryptocurrency?

The first step in bitcoin investment is security. The market has been doing well lately, and some of my friends around me who have never been exposed to crypto are getting excited. Here, I would like to remind you once again that in the world of cryptocurrencies, security is the most important thing! Security! It’s still safety! So the question is, how should an individual investor keep their cryptocurrency safe?

There are three wallet types for you to choose from: hardware wallets, software wallets, and cold wallets.

Hardware wallet
This is like a “U-shield” that is designed to store your private keys, it is not connected to the internet and the transaction signatures are done inside the device.
Pros: The private key is stored offline and is extremely secure.
Disadvantages: It costs money to buy the device, and every time you transfer money, you need to plug in the device and enter the PIN code, which is not suitable for high-frequency transactions.
Suitable for: investors who hold large assets for a long time and have very high security requirements.
Software Wallet (also known as Hot Wallet)
This is an application installed on your cell phone, computer or browser, such as Trust Wallet, Metamask, etc.
Pros: free and easy to use, transfers and receipts can be made and received at any time, suitable for daily transactions.
Cons: The private key is stored in a networked device, which may be attacked by viruses, Trojans or phishing sites.
Suitable for: people who frequently trade small amounts of money, and newbies who are just starting out.
Cold wallets (e.g. paper wallets, etc.)
This is the most “traditional” form of offline storage, where the private key is written on paper or engraved on a metal plate and locked in a safe.
Pros: Completely offline and resistant to almost all online attacks.
Cons: Very inconvenient to use, requires a lot of effort each time you access the funds, and you have to worry about losing the paper, or having it burned or blistered.
Who it’s for: Deeply refrigerated, large assets that you don’t intend to move.
One sentence summary:
If you are looking for ultimate security, choose a cold wallet;
If you want to find a balance between security and convenience, choose a hardware wallet;
If you value convenience more and have a smaller amount of money, choose a software wallet.

A few key habits for everyday theft prevention:

1. Don’t click on links from unknown sources or random ads in search engines to access the wallet’s official website.
2. Official customer service will not ask for your private key or helper word, and any request for this information is a scam.
3. Wallet software and browser plug-ins are downloaded only from official sources.
4. Do not operate the wallet on public computers or in public Wi-Fi environments, and use a dedicated device to manage your assets if necessary.
5. Keep the helper/private key offline, don’t take pictures or store it in the cloud.
6. Don’t keep all your assets in one wallet: set up a “hot wallet” to handle daily transactions and store most of your long-term assets in a “cold/hardware wallet”.

How to choose the right security solution for you?
If you hold large amounts of cryptocurrency for a long time: buy a hardware wallet or use a cold wallet to keep your main assets offline.
If you make daily high-frequency trades: use a software wallet to store small amounts and transfer the remaining large amounts to a hardware/cold wallet.
If you are new to trading: you can use a software wallet to familiarize yourself with the operation first, and upgrade the security level as soon as possible after your assets increase.
Custodian accounts (exchanges): it’s fine to store cryptocurrencies for a short period of time, but don’t store large amounts of money for a long period of time, and remember to turn on 2FA (double authentication).

In the cryptocurrency world, losing your private key means losing your cryptocurrency, and there is no such thing as “forgetting your password and getting it back”. Only by choosing the right wallet and practicing good habits can you be truly secure.