How to Safely Store your Crypto Assets
Most crypto owners always remain worried about the security of their crypto assets. It is also because, with the recent increased adoption of cryptocurrency, the number of security breaches and cyberattacks is also multiplied. But storing your crypto assets safely is not that difficult. In this guide, you will learn how to safely store your crypto assets and invest them for making a regular profit.
How to Safely Store your Crypto Assets
So, let’s get started!
What is a crypto wallet?
Crypto wallet is a software program that is developed to store cryptocurrencies. More specifically, crypto wallets store public and private keys, which are the only possible method to access your crypto assets on the blockchain network.
There are many crypto wallets available in the market. Therefore, it is crucial that you know about them and then choose the right one for you.
Types of crypto wallets
There are different types of crypto wallets, but essentially, there are either hot wallets or cold wallets.
Hot wallet
A hot wallet is the most common type of crypto wallet connected to the internet. Hot wallets are further classified as:
Web wallet
A web wallet is accessible through a web browser. It does not require downloading any app on the device. These are also called online wallets.
Desktop wallet
A desktop wallet runs on your desktop. It means it requires you to download the application.
Mobile wallet
A mobile wallet is specifically designed to use on smartphones so that they can be accessed anytime and anywhere.
Examples of Hot wallets
- Exodus
- Electrum
- MetaMask
Pros and Cons of Hot wallets
Pros
- These wallets are instantly available.
- These are easy to use with a straightforward interface.
Cons
- These wallets are vulnerable to attacks as connected to the internet.
Cold wallets
Cold wallets are physical stores that are not connected to the internet. They are only connected to the internet when required to make transactions. Cold wallets are further classified as:
Hardware wallet
Hardware wallets are not connected to the internet and store private keys on a physical device similar to a USB.
Paper wallet
A paper wallet is a piece of paper that contains the information required to access cryptos.
Examples of Hot wallets
- Ledger Nano S & X
- Trezor One & T
- ProKey
Pros & Cons of Hot wallets
Pros
- Cold wallets are more secure than hot wallets.
- These are better options to store a large number of digital assets.
Cons
- These are expensive as compared to cold wallets.
- These wallets do not support a large number of cryptocurrencies.
Best security practices to store your crypto safely
The following practices can help you keep your assets safe from malicious activities.
- Enable two-factor authentication to access your account.
- Use antivirus to keep your device free from malware and viruses.
- Always use a strong and unique password to access your device.
- Never share your private keys.
Invest crypto assets for making regular profits
Making profits over crypto-assets is the ultimate goal of every crypto owner. That’s why they always look for the best investment opportunities. You have learned to store your assets securely; now, let’s learn how to invest them for making regular profits.
Crypto lending
Crypto lending can help you earn regular profits without requiring selling your assets. In crypto lending, you will lend your cryptos to borrowers. In exchange, you earn interest or crypto dividends up to 17%. This lending method offers several advantages in the matter of flexible loan terms, accessibility, lower fees, and interest rates in comparison with traditional bank lending. By lending cryptocurrency, you get a chance to earn passive income without any specific efforts. In the case of cryptocurrency loans, factors such as credit history and current income don’t take into consideration, which banks definitely don’t let you. Additionally, lending cryptocurrency doesn’t require a wealth of personal information and long duration, thus lending crypto is far more accessible and faster than lending money.
Many crypto lending platforms deal with both cryptocurrencies and stable coins lending.
How does crypto lending work?
In crypto lending, you will have to deposit your assets on a crypto lending platform. The lending platform automatically lends these assets to the borrower. In exchange, interest payments start depositing into your account. You will get your crypto back and the interest payment as profit when the lending period ends.
For taking a loan borrower has to deposit collateral more than the loan value, and he cannot use it until he pays off the entire loan amount and interest payment. If the borrower does not pay back, you can sell the collateral to cover your loss.
Best crypto lending platforms; How to Safely Store your Crypto Assets
The following are some of the best crypto lending platforms.
- Nexo
- BlockFi
- Compound Finance
- MakerDAO
- Aave
Cryptos are here to stay. So, keep your cryptos safe and invest them in crypto lending to earn a regular return without any hassle!
Founder Dinis Guarda
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