How to Keep Your Crypto Secure

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In this video, we’ll talk about how to keep your crypto secure...

You’ll learn the pros and cons of different ways to store your cryptocurrency so you can choose the method that works best for you to keep your crypto safe.

#1 CRYPTO EXCHANGE

The simplest and most convenient option is to store your crypto on a cryptocurrency exchange.

With this type of “custodial wallet,” you don’t have to worry about losing your private key and all your crypto with it. If you forget your password to your account, you can just reset it.

It’s typically free to set up an account like this, and it makes it very easy to buy, sell and trade crypto.

Some crypto exchanges will even pay you interest on your crypto!

The biggest disadvantage is the security risk of leaving your crypto with a third party.

The centralized structure of crypto exchanges is a target for hackers and cybercriminals.

If you decide to keep some of your crypto on an exchange, please follow the crypto security tips and best practices covered in this video.

#2 HOT WALLET

If you want to store your crypto somewhere more secure than an exchange, the next most easy and convenient option is in a Hot Wallet, sometimes called a Software Wallet.

A Hot Wallet is an online wallet through an application like Trust Wallet or Coinbase Wallet… not to be confused with the Coinbase cryptocurrency exchange we talked about.

With Coinbase Wallet, your private keys are stored directly on your computer or personal divide and not within a centralized exchange, like Coinbase.

With a hot wallet, you might still be able to earn passive income on your crypto through a process called “staking.”

The nice thing about a hot wallet is that it’s convenient and easy, it’s usually free to use, and you have more direct ownership and control of your crypto.

On the other hand, not all wallets accept all kinds of crypto, and because hot wallets are connected to the internet, they’re still vulnerable to cyberattacks.

You’ll want to make sure that whatever platform or wallet you store your crypto in has great security measures, like two-factor authentication, storing part of its crypto holdings in cold storage, and having private insurance policies in place in case of hacking or theft.

#3 COLD WALLET

The MOST secure way to keep your crypto safe from cyberattacks and malware is to store your crypto in a Cold Wallet.

A Cold Wallet is any kind of wallet that’s NOT connected to the internet and therefore doesn’t have the vulnerabilities that come with that.

These wallets can also be referred to as offline wallets or hardware wallets.

The simplest and most low-tech cold wallet is a Paper Wallet, which most people don’t recommend anymore because better options are available now.

Another type of cold wallet that is more common and popular is a hardware wallet, like the Ledger Nano X.

These devices are considered to be very secure because your private information never comes into contact with your network-connected computer, so it’s not easily hacked with a virus or malicious website.

You might still be able to earn money through staking.

However, it’s less convenient because you can’t sell or trade your crypto while it’s in a cold wallet.

Even if you have a stainless steel recovery seed storage kit, that could still be lost, misplaced or stolen.

But the biggest downsides I see to using a hardware wallet are the learning curve and the potential tech issues involved.

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BLOCKFIYou can get up to $250 worth of free Bitcoin when you open and fund your BlockFi account with this link

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COINBASEYou can get $10 worth of free Bitcoin when you open an an account and buy or sell $100 worth of crypto on Coinbase with this link

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BINANCE:

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Here’s an example of a stainless steel recovery seed storage kit:

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Ledger Nano X Hardware Wallet for Cold Storage:

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Andrei Jikh’s video on how to set up the Ledger Nano X:

NOTE: Penelope Jane Smith will receive an affiliate commission or referral bonus from some of the links and other products that appear in this video. Penelope Jane Smith is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.