Crypto: Storage and Security

Storage and Security The virtual space where cryptocurrencies are stored and kept is called Wallets.

There are different types of wallets: Cold wallets, hardware or paper wallets are undoubtedly the ones that provide the highest level of security when it comes to safeguarding our funds. They operate offline and therefore there is no risk of them being hacked or hacked. The best known hardware wallets are Trezor and Ledger.

Online wallets or hot wallets are platforms that operate directly from a website and in most cases, the custody of private keys is in the hands of third parties. However, many of them allow extra security layers to be configured in order to provide greater confidence to their users.

There are also simpler wallets such as SPV wallets or light wallets. Their main mission is to make the wallets easier to use and require fewer resources in their execution and work.

The proper use and storage of your bitcoins and cryptocurrencies is essential, because, although the ecosystem is very safe, a bad use of it can lead us to lose our money. It is therefore very important to follow security protocols that guarantee the control of our cryptocurrencies.

Blockchain is designed to be secure, it is practically impossible to hack the system. However, it is possible to take advantage of the vulnerability of the users’ use, so it is very important to follow these security practices when using your bitcoin and cryptocurrency wallets:

• Always use a password manager.
• Do not use the same password and username for all your logins.
• Install anti-virus software and keep it updated.
• Never install software developed by companies you do not trust.
• Only use verified and trustworthy wallets.
• Update the wallet software as soon as it is available
• Verify that your public address is correct when you send it to the people who will transfer their funds to you
• Check your recipient’s public address at least twice when you send money.
• If you access an online wallet, make sure the address is secure.
• Never access online wallets from a public network.
• Always enable two-factor (2F) authentication on all your wallets.
• The more layers of security you use in your wallets the better.

In conclusion, the security of control over your bitcoin and cryptocurrencies depends on you. No matter what type of wallet you have, always back up your data and information. It is very important to keep a copy of your usernames, email and passwords in a safe place, remember that your passwords should be as complicated as possible, not repeated and using a password manager is an amazing tool to keep your cryptocurrencies safe. When we hear about a cryptocurrency “Theft”, it is usually due to human error and not technology failure.