Before you buy Bitcoin, Ripple, Ethereum or other cryptocurrencies, you will first have to find a wallet where you can securely keep them. A wallet always comes with a private key that is needed to view the content of your wallet and to execute transactions.
There are different types of wallets to choose from. Within each category of wallets, you have different providers, each with their own advantages and disadvantages. The most secure wallets are the hardware wallets. However, unlike online and software wallets, hardware wallets are not free.
CHOOSE A TYPE OF WALLET
Software Wallets – For desktop and mobile
Online Wallets – Most convenient
For safe use of cryptocurrencies, it is advisable to use a combination of multiple wallets; an online or software wallet for the smaller quantities with which you can invest and a hardware wallet for asset management.
Are crypto wallets safe?
This is highly dependent on which option or combination of options you choose to use.
The most secure option is a hardware wallet that is offline and keeps your crypto assets in a safe place. That way you have no chance of being hacked and losing your private key and coins. Please note that if you lose your hardware wallet and you do not have a backup copy of both of your coins and your private key, you will lose the entire contents of your wallet.
On the other hand, storing cryptocurrencies in an online wallet is not the safest way to manage your coins. However, an online wallet is very accessible and often the easiest and fastest in daily use. You will have to make an assessment by yourself.
Serious crypto investors use a combination of wallets and security measures. They usually make long-term investments and keep so-called ‘long term coins’ offline in a hardware wallet. In addition, they often keep a smaller portion in an online wallet for ‘trading’ and payments. The choice you make here depends on your investment strategy and your willingness to delve deeper into the safety aspects.
Whatever you choose, be careful at all times. Make a backup of everything and do not underestimate the safety risks.