
<!-- Google AdSense AMP snippet added by Site Kit -->
<amp-auto-ads type="adsense" data-ad-client="ca-pub-7026113949539412"></amp-auto-ads>
<!-- End Google AdSense AMP snippet added by Site Kit -->

<pre class="wp-block-verse has-text-align-center"><strong>Digital money</strong> is easy to lose. We will tell you how to properly keep your coins so as not to lose them by mistake or due to intruders</pre>



<p>Many newcomers to <strong>cryptocurrency </strong>face one challenge: storing their <strong>digital assets</strong>. The industry is still underdeveloped, so it cannot be said that <strong>cryptocurrency </strong>services can compete with banks in terms of security and ease of use.</p>



<p>It is possible to lose <strong>cryptocurrency </strong>due to carelessness; there are also many scammers in the industry. </p>



<p>Therefore, for a start, you should familiarize yourself with the main methods of <strong>storing cryptocurrency</strong>. This will allow you to better understand the topic and feel more confident.</p>



<p></p>



<p class="has-large-font-size"><strong>Stock exchange</strong></p>



<p><br>The easiest and most understandable way to <strong>store cryptocurrency</strong> is to keep it on the <strong>exchange</strong>. When creating an account, each user has his own wallet. </p>



<p>It supports all <strong>coins </strong>that are traded on the site, there is always quick access to them. You can <strong>sell or buy</strong>. Also one of the advantages of this option: the ability to easily restore access to your account.</p>



<p>In contrast, there is the main disadvantage &#8211; the security problems of <strong>exchanges</strong>. From this point of view, <strong>cryptocurrencies </strong>remain in the era of the Wild West, because no major marketplace has been left without the attention of hackers. Even the heads of large <strong>exchanges </strong>urge not to keep funds on them.</p>



<p>“Please do not <strong>store </strong>more <strong>cryptocurrency </strong>on <strong>exchanges </strong>than you need to trade. Use Ledger and <strong>Trezor </strong>(<strong>hardware wallets</strong>), DEX (decentralized exchanges) are not a panacea, look at The DAO. </p>



<p>Open source only says that exploits will be detected earlier (probably by the bad guys), &#8220;<strong>Kraken </strong>CEO Jesse Powell wrote on Twitter.</p>



<p>In 2018, <strong>ICORating </strong>found that most exchanges (54%) have various security issues. The situation has improved over the past three years. </p>



<p>Now it is difficult to imagine a site that does not offer to install two-factor authentication. But hackers also improve their skills. Therefore, it is worth keeping on the <strong>exchange </strong>only the amount that you are not afraid to lose.</p>



<p>An illustrative case occurred with the clients of the Canadian exchange Einstein. Last fall, she owed clients over $ 12 million, while she had only $ 45,000 in &#8220;hard assets&#8221;. One trader said the company owed him $ 535,000, according to another lender, several million dollars.</p>



<p>The choice of an <strong>exchange </strong>must be approached with extreme caution, because there is always a risk of being caught by scammers. </p>



<p></p>



<p class="has-large-font-size"><strong>Hardware wallet</strong></p>



<p><br>The safest way to <strong>store cryptocurrency</strong> is hardware wallets (devices that often look like a <strong>USB flash drive</strong>). But here, too, everything is not so simple and you need to be extremely careful. </p>



<p>For example, in December 2019, experts from the <strong>Kraken exchange </strong>found out that the <strong>KeepKey wallet </strong>could be hacked in 15 minutes, and the attack would cost the attackers $ 75.</p>



<p>However, this method is still more reliable, since in order to hack the criminals need to gain physical access to the <strong>wallet</strong>. If it is stored in a safe place, then the risk can be minimized.</p>



<p>Last year, a <strong>hack of Binance</strong>, the largest <strong>exchange </strong>by trading volume, doubled the sales of Ledger <strong>wallets</strong>. But they often find vulnerabilities or errors in work.</p>



<p>When choosing a <strong>hardware wallet</strong> as an option for storing your funds, you need to remember that the loss of a PIN code will lead to the loss of <strong>cryptocurrency</strong>. </p>



<p>Also, a minus of <strong>hardware wallets</strong> is the ability to lose or spoil it physically. For example, children or a dog can break it at home.</p>



<p></p>



<p class="has-large-font-size"><strong>Online wallets</strong></p>



<p><br>This method is similar to the storage option on an exchange. The <strong>cryptocurrency </strong>does not belong to you, and its fate depends entirely on the service on which it lies. An extremely convenient and unsafe way. <strong>Hackers </strong>have tons of options for stealing funds. </p>



<p>For example, <strong>hacking a user account</strong>, the service itself, or creating a phishing page. You need to be extremely careful not to keep a large amount of funds in your <strong>online wallet</strong>.</p>



<p>Depending on the method of storing private keys, <strong>online wallets</strong> are divided into hybrid and traditional. <strong>Wallets </strong>of the first type use separate storage of keys using multi signature, the second &#8211; private keys are on the service, and only a backup copy is available to the user.</p>



<p>The main advantage of <strong>hybrid wallets</strong> is that the developers do not have full access to the user&#8217;s <strong>coins</strong>. Payments from such a service cannot be made without the joint participation of the client and the company. This increases the level of protection. </p>



<p>On the other hand, the loss of the secret phrase will become fatal, in which case it will be possible to forget about the cryptocurrency.</p>



<p>One of the most famous online wallets is <strong>Blockchain.com</strong>. Another popular wallet is <strong>BitGo</strong>. It is considered secure as each transaction requires two signatures. The platform does not have full access to the user&#8217;s coins. You can also work with it only after connecting two-factor authentication.</p>



<p></p>



<p class="has-large-font-size"><strong>Local wallet</strong></p>



<p><br>A universal way to store funds is a <strong>local wallet</strong>. These are <strong>applications for PCs or mobile devices</strong>, browser extensions. Finding such a wallet is easy: just go to the official website of the project and download the appropriate version. But this method also has its own difficulties.</p>



<p>The mobile option is suitable for those who need constant access to their coins for transactions. But the <strong>cryptocurrency </strong>will not be stored on the <strong>smartphone</strong>, so it can only be accessed if the Internet is available. Even if the device is lost, <strong>digital money</strong> can be returned.</p>



<p>A local <strong>wallet </strong>on a PC makes sense only for coins that use <strong>Proof of Stake </strong>in their algorithm. Because to store <strong>cryptocurrency </strong>in this way, you need to completely download the <strong>blockchain </strong>of the selected asset. And it can weigh tens or hundreds of GB. </p>



<p>In the case of <strong>PoS</strong>, as long as there is some amount of <strong>cryptocurrency </strong>in the <strong>wallet </strong>and the computer is turned on, the user is credited with a certain amount of <strong>digital money</strong> on the balance. This is exactly the feature that will appear in <strong>Ethereum 2.0</strong>. You can become a network validator by storing at least 32 <strong>ETH </strong>in your <strong>wallet</strong>.</p>



<p></p>

