Wallets For Your Storage
Will Your Wallet Be Hot or Cold?
This is one of the most important steps to take before investing in cryptocurrencies.
You must be wondering how the terms “hot” or “cold” relate to storing cryptocurrencies.
In the realm of cryptocurrencies, a wallet is a a storage for all your crypto/digital assets like Bitcoin, Bitcoin, XRP, Monero, Ethereum, ER-20 tokens etc.
The major difference between a Hot Wallet and Cold Wallet is that the Hot Wallet is connected to the internet, while the Cold Wallet is not connected.
A Hot Wallet is an online digital wallet that stores your cryptos and other digital assets, while the cold wallet is a hardware device that is not connected to the internet, which makes it more secure compared to its online counterparts.
The Online or “Hot” Wallet is easier to use and access, but not as secure, due to the risk that your private keys to your wallet can fall into the wrong hands.
Rememeber this phrase by heart:
“Not Your Keys, Not Your Bitcoin.”
You will see this phrase used in the community quite often with regards to holding your private keys for your Crypto/Digital Wallets —
“If you don’t own your private keys, you don’t own the coins.”
So now you know the importance of holding your private keys to your crypto wallets.
For any beginners interested in acquiring Bitcoin’s and other crypto’s, the first thing I would highly recommend is to get two online or Hot Wallets:
The Bitcoin.com wallet from Bitcoin.com
I have used it quite alot and its incredibly easy to use and store cryptos. Plus, the functionality of the Bitcoin.com wallet is versatile.
You can buy, sell and exchange cryptos like BTC, BCH etc.
Recently, Bitcoin.com wallet has upgraded its wallets to allow the user to swap directly BTC to BCH and vice versa as well as USDC through the service of Sideshift.io.
The website is informative, and it has been in the crypto/blockchain space almost since the beginning. The people involved in Bitcoin.com are passionate and fiercely pursuing their goals to spread crypto adoption. One of the key people at Bitcoin.com is Roger Ver, who is the world’s first investor in Bitcoin and funded the first generation of companies in the crypto space single-handedly.
Another recommendation for you is to get an online wallet is from Exodus.
This is hands-down my favorite online wallet to have as it can be accessed by desktop and mobile. I would recommend to download the desktop version and later download the Mobile Wallet for ease of access for your crypto assets and investments.
The Exodus Wallet is a beautifully crafted digital wallet where you can store, secure, manage and exchange your cryptocurrency in one application.
One of the major benefits with the Exodus Wallet is its desktop and mobile applications where you can store 115+ cryptocurrency assets.
Another amazing benefit is that you can exchange between assets to effortlessly diversify your portfolio 24/7 in seconds.
This is incredible right there.
For more info about the Exodus Wallet, go down to Exodus.
Now you are aware of hot wallets or online wallets, let’s delve into cold wallets or hardware wallets.
Eventually you will be accumulating more Bitcoin’s and cryptos, to the point where the value is quite substantial. You will need to be more prepared and secured with your growing crypto asset wealth.
This would be a good time to acquire a cold wallet aka: hardware wallet.
You need to get a cold storage hardware wallet to store your cryptocurrency.
These devices cost money or “currency” as Mike Maloney would say ,
And they are worth every satoshi…
(the smallest unit of bitcoin currency!)
There are several different types of wallets out there, and some wallets only support specific cryptocurrencies.
Here’s the key thing to remember:
Never EVER leave your cryptocurrency on exchanges.
It’s extremely risky, and hackers are constantly trying to break into exchanges.
The safest place to store your investments is by using cold storage, hardware wallets.
These devices store the keys to your crypto offline, so it’s the safest way to store and access cryptocurrency.
Get a hardware wallet (cold wallet) so you can store them safely after purchasing them.
The two most popular hardware wallets are made by Trezor and Ledger.
Important Tip: Never buy a used hardware wallet.
And never buy a hardware wallet from a different source than the sites listed on this guide to ensure you are getting a clean, official device.
My Recommended hardware wallet is the Trezor One and The Trezor Model T.