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What are the Safest Ways to Store Virtual Currencies – 2021 Guide

The cryptocurrency market has been gaining popularity as an excellent investment. What started with a value of a few cents in 2009 has now risen to a value of $60,000 per bitcoin. This monumental rise has made bitcoin one of the most profitable assets of this decade. According to many experts, this will only increase in the future as more people start investing in cryptocurrency.

With the advent of cryptocurrency’s dramatic rise in value, its user base has seen a hike too. More and more people who didn’t invest before now want a piece of the bitcoin pie that wise investors already received. This sudden surge of users has made virtual currencies into a user hotspot with hundreds of new users joining in and investing in the virtual currency of their choice. According to thebitqtapp.com, the time has never been better for virtual currencies and you should definitely consider investing in them.

However, there is one problem that all virtual currency investors must imminently face one day or the other – cryptocurrency storage. Now, most people are already aware of online wallets that most cryptocurrency platforms provide for free to keep your digital currency in them. However, what most people aren’t aware of is that ‘hot wallets’, which are wallets connected to online sources, are actually the most unsafe method of storing cryptocurrency. Hackers can use extensive hacking methods to access your online currency and steal it to their own accounts.

The safest way to store virtual currency

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The wallets that are online based, that is hot wallets, are only for those who do trading on a much more frequent basis and can willingly adapt their security at times. On the other side of the choice, if your investments are longer than the average consumer and require the most premium security for your virtual currency, there are other alternatives for you.

Offline wallets are called cold wallets and they store all your currency offline and safe from the reaches of hackers. This way hackers aren’t able to creep into your wallet and hack it, and you can stow all the cryptocurrency you earned in your own safety to ensure nothing goes amiss. These wallets are known to be equipped with excellent security protocols for virtual currency storage systems. If you continuously make an investment in the long run or even a medium-term crypto investor, almost all experts would unanimously agree that keeping your wallets offline and cold will be the most viable option.

These wallets come in various types each having its own benefits. The two primary types are – paper wallets along with another type called hardware wallets. Let’s discuss them in detail today.

Paper wallets

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A paper wallet is the most preferable type between the two just because of the sheer simplicity it offers. Paper wallets are exactly what they sound like, offline printed copies of your wallet’s keys that let you access your cryptocurrency in a more secure way. There are many advantages of these wallets, one primarily that you have all your keys accessing your currency in printed form. You can keep this at your safest place, either the safe in your home or your bank.

To use them, simply type the keys written in bold letters across the wallet when you are transacting your virtual currency online or scan the QR code that comes with most printed paper wallets. Several cryptocurrencies support these wallets and would be more than happy to help you utilize them. Still, there are various disadvantages of using these wallets as well which you should be aware of.

The most primary disadvantage is since these wallets aren’t digital, they are vulnerable to physical harm. If you don’t laminate or frame them, they can easily succumb to a fire hazard or even water. You wouldn’t want this to happen, especially since it has all your keys written over it.

An offline copy also means that while it can’t be hacked, it can easily be stolen or robbed and if the thief has a way to access your currency, then all your virtual currency can be easily stolen. Not to add to the fact that if you do print it out, the person you print it from should be someone you can trust your entire virtual wallet with (or better, print it out yourself).

Hardware wallets

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Unlike hot wallets that are mostly software-based, a hardware wallet is completely based on a hardware device. These wallets are amazing at securing all your virtual currency in a mobile, accessible, and remote device. It’s very intuitive when it comes to using these wallets – simply buy one from a reputed hardware wallet manufacturer, connect it to your laptop or PC or even your smartphone, access your virtual currency and do all the transactions you want.

This is extremely straightforward and many investors consider these wallets to be the most optimal virtual currency storage option. Still, they are not without their risks and disadvantages. The most fundamental disadvantage is hardware wallets are, well, hardware. They can easily be robbed or lost somewhere, similar to their counterpart wallets. If the thief also steals your laptop or smartphone, then he can easily connect your wallet to your virtual currency and take it all for himself.

Additionally, these wallets don’t come free. Even the average and standard wallet that we recommend you should buy, comes with a hefty price tag on it. While their function is really important and the price tag is thus justified, it is still a hefty amount you need to pay. They also carry only a limited number of virtual currencies – a restriction not present on online wallets.

Which wallet should I buy?

The choice entirely depends on you. If you think that you can safely secure your paper wallet from thieves, then by all means go for it. Conversely, if you don’t feel so secure about paper wallets and need a quicker way of accessing your virtual currency, consider going for a hardware wallet.

Conclusion

In the end, all virtual currency wallets have their own flaws. It is up to you to make a wise choice and go for the option that you feel is the safest for you. We hope this article helped you out, and if it did, please consider following our website for regular updates as it will help us out immensely.

About Henrietta Milanovska

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