Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Most crypto holders understandably worry about the safety of their coins. A glance at the news reveals plenty of stories detailing thefts and hacks where vast amounts of digital fortunes are siphoned off.
A lot of crypto buyers assume holding coins on an exchange is a smart security approach. They think platforms with a large user base and notable presence have proper protections to keep crypto safe. This is not often the case.
In late April 2021, the Hotbit exchange announced “a serious cyber attack” that paralyzed many services. While the thieves could not hack into the Hotbit wallets, the exchange team said they would have to shut down activity for at least a week to recover. Hotbit said they were just about to surpass 2 million registered users and would have to rebuild at least 200 online servers.
Earlier in April, a blockchain analysis service found how 10,057 stolen Bitcoin was transferred in a series of transactions. According to Whale Alert, the funds were stolen from Bitfinex in 2016 and moved to an unknown wallet. The 2016 theft of the Bitfinex exchange resulted in a 65 million USD Bitcoin loss (at the time).
Holding Crypto In An Exchange Is Not A Wise Move
Evidence shows holding crypto on an exchange is a risky endeavor. Users have to put their trust in the platform for security, and since the exchange holds the private keys, crypto holders do not actually own their coins.
Finding the right wallet remains the best way to store crypto safely. But understanding how to do so can be difficult. Many wallets tout a number of security features those unfamiliar with the crypto (or cryptography) industry might not understand.
Some wallets have advanced security features with a large learning curve, even to seasoned digital currency veterans. It can also be hard to determine what type of cryptocurrencies different wallets support, and if a particular tool can store coins from airdrops and received through staking.
Crypto holders with a large portfolio of different coins often wonder if they will have to switch between wallet accounts to manage digital currency.
Fortunately, a number of secure and effective crypto wallets have been developed that combine the ability to store a wide range of coins with an easy-to-use interface.
CoinSpace’s Coin Wallet provides users with a unified address that can be used to manage an entire portfolio. Wallet users rely on the same address (and save a lot of time) to send and receive crypto, participate in ICOs to collect coins, and acquire tokens through special airdrops.
The all-in-one nature of the wallet makes it simple for novice and experienced crypto holders to begin security storing coins and participating in the crypto world.
The Coin Wallet comes with AES-256 encryption, strong passphrase encryption on wallet creation, and localizes each installation of the wallet on the actual device. Wallet users maintain control over private keys as they are never communicated with any third-party.
CoinSpace also does not reuse wallet addresses or leak metadata and equips their wallet with Tor and VPN support so transactions can be routed privately.
If you are in Time Square check out our billboard. pic.twitter.com/f1SNX6jPs5
— Coin Bitcoin Wallet (@CoinAppWallet) March 27, 2021
Understanding What To Look For In A Good Crypto Wallet
Aside from hot wallet options like CoinSpace, many cold storage hardware options are also available. Cold storage tools are popular since they are not connected to the Internet. They often do not store as many coins as their Internet-connected alternatives.
Crypto holders should research to understand what type of wallet is best for them. While sifting through websites and pages of information can be daunting – there’s a few key practices that make finding and setting up a wallet as easy as possible.
Holders interested in quick trading or making many transactions should opt for an Internet-connected hot wallet, since they are more convenient. A cold-storage wallet is recommended for assets that do not need to be managed on a day-to-day basis.
Many crypto users combine both hot and cold wallets to distribute their assets for maximum flexibility.
While Finding The Right Wallet Can Be Hard; There’s Plenty Of Good Options For Everyone
A wallet like CoinSpace’s Coin Wallet should only be downloaded directly from the official website. Similarly, a physical wallet should only be purchased from the official manufacturer and not a third-party outlet like Amazon or eBay.
Thieves will often make fake websites to try and trick people into downloading or buying corrupted wallets to steal funds that users move into them.
Overall, all crypto holders should move their assets off exchanges and into a crypto wallet. There are options on the market that make it easy to store a wide range of coins under one wallet address for a simplified trading experience.