Afraid of being Hacked? Here's How To Store Your Cryptocurrency Safely
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If you are interested in the world of cryptocurrency investment, there is one main thing you need to understand. It's not your trading ability (although it can help). No, this is for your safety.
Often times, many people choose to store their digital money in electronic marketplaces such as Bitcoin Indonesia/Indodax for the convenience of trading. But this is very dangerous for their investment, because the risk of being hacked is very high.
Since cryptocurrency was started, there have been many cases of hacking that have occurred to well-known exchanges as you can see in my previous article.
How to Store Cryptocurrency Properly: But what is a safe way to store Cryptocurrency such as Bitcoin, Ethereum and other Altcoins? Bitcoin, Ethereum and other Cryptocurrencies can be stored in your personal wallet, just like your cash. The only difference is that this wallet is Digital.
There are different types of wallets that can be used at different times. Wise people keep their Bitcoins offline or in cold storage wallets. But how does this increase security, and what are your options?
Coins are not stored in a wallet but on the blockchain.
Instead a wallet has two keys, namely: Private Key and Public Key. The Private Key represents your ownership of the Public Key (a code linked to a certain amount of currency on the blockchain) to access your funds on the blockchain.
Public Key/Wallet Address, allows users to send a number of coins to other users. Private Key is your password and login id. By entering the Private Key, you can immediately access your wallet.
You must keep your Private Key safe because with a Private Key, anyone can access your Cryptocurrency. There are several types of wallets out there such as Hardware wallets, Web wallets or Software wallets.
Hardware Wallets (Trezor, Keepkey, Ledger Nano):
This type of digital wallet is generally recommended for storing large amounts of money. It's like storing Crypto coins on a hard drive, but they are hardware specifically made to store Cryptocurrencies safely. We can turn on this device to transfer coins, upload data and take it offline for more secure storage.
Each hardware wallet device is given a "recovery code", this code is very important for you to record and store properly because if your hardware wallet is lost or damaged, then you can get your wallet back. For Tips on Choosing a Hardware Wallet, you can see our recommendations here (Link for Hardware wallet recommended).
To date, there are no incidents that can prove the theft/hacking of cryptocurrency from hardware wallets/wallets. Hardware wallets are relatively new, but at least for now they have maintained a good track record.
Wallet Online: Wallet Online adds several conveniences for you to access from anywhere with access to the web.
Online wallets like MyEtherWallet are very secure because the site doesn't store or send sensitive data when you use MyEtherWallet (MEW). MEW only has access to publicly available information on the blockchain. However Phishing is common to online wallets.
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