Hitting the first layer of storage, from a traders point of view.
As a trader, there are millions things to consider when looking for a wallet to store your cryptocurrency, why, and when to be exchanging it.
All the Options
The first thing that needs to be established is that there are several sources for storage. Starting from the best option to the worst, it includes a cold wallet, a hardware wallet, mobile or computer wallet, and web wallet. Each wallet has different privacy levels and different reasons for people choosing that type of wallet. It’s important to be very smart and meticulous with your currency as to not get it taken or lose it, and always remember to backup your wallet somewhere else so you will always have access if anything happens. Let’s get into all the details now…
If the user decides to hold on to the coin for a long time and doesn’t want to exchange it then the single best option is to have it in a cold wallet. By that we literally mean to print out your coins and keep them in a safe deposit box with all your jewelry and passports so no one can ever take them from you and nothing will happen to them. For those of you who don’t fully understand how this works, when you have a hard copy of the coin there will be an access code, your key, to your coin so when the time comes that you decide to exchange it you’ll use the code and it’ll be digital again. Token that are stored this way will be safe and sound for as long as you wish.
On the other hand if you want to exchange the tokens or use them the best option is to keep them on a hardware wallet. In other words, keeping them on a USB can do wonders and save you from a lot of stress. Of course there are things that need to be considered with going this route. Like how often you’ll be wanting to use the tokens, where is the safest place to keep them on you, your keys or wallet. It’s also important to understand that once the USB is in a computer there is room for hacking and scams for buying and selling. Hardware wallets depend on the security of RNG, Random Number Generator, to keep the keys safe. However, there is a possibility of the RNG getting weaker if there’s an unintentional mistake or even an advanced hacker being able to duplicate the numbers and take everything you have.
The next option come at the same level and they are mobile and computer wallets. The options for mobile wallets is to download apps that will secure your keys and coins. Some of the best apps include, but are not limited to, MyCelium, BreadWallet, Copay, and others. Remember though if you lose your phone you have the risk of yet again losing everything you have. Some applications that are good for computer wallets include, but are not limited to, are Exodus, mSIGNA, Copay, Armory, and more. But you always have to keep in mind the possibility of being hacked. As long as you’re connected to the internet these wallets are okay, but there’s more risk of being hacked and losing what you have. Of course it relies you to put more trust on the third party with your assets.
The last option would be a web wallet. Just like mobile and computer wallets, web wallets have the same risk if not more! You need to really trust the 3rd party you’ll be working with to keep your keys and coins 100% secure. Some applications that you can look into are, but are not limited to, BitGo, Coinapult, Coin.Space, Green Address, Blockchain.info, and more.
It’s important to always backup your wallet and take precautions. We hope it’s understood that this is from the traders point of view and what the suggestions are. Tune back soon to hear more about storage and wallets and other topics!
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