Storing your Cryptocurrency Safely, Trezor and Ledger
The popularity of cryptocurrencies is increasing at an alarming rate. Sadly, the increased interest in digital assets is accompanied by an increase in external threats. You might think that cryptocurrencies are secure owing to their decentralized nature. A majority of them offer anonymous transactions. However, these aspects do not protect cryptocurrencies from human error and negligence.
Apart from personal mistakes, cryptocurrencies are susceptible to outside threats. Since the cryptocurrency market is constantly attracting new users, it is also attracting criminals. This culminates into the birth of new frauds and the resurgence of old ones. According to Coin Market on 1/13/2019, the combined global crypto market is worth $118,569,593,797, which is a big improvement from $16,106,710,995 in 2016. This means that the hackers have a potential to get a huge payout if cryptocurrency assets are not secured appropriately. For this reason, it is advisable to use paper wallets and hardware wallets to store cryptocurrency.
Fundamentally, a paper wallet is a private and public key printed together. Since it is an offline wallet, it is normally referred to as a type of cold storage. A paper wallet is extra-secure because it does not interact with hackable internet. Basically, paper wallets are made out of paper, but they can also be made of any other materials onto which information can be printed. Normally, the private and public keys are printed in QR form, with the public keys serving as the address. The keys are generated in your browser, hence they never broadcasted over the internet. Furthermore, for more safety, you can clear your browser after printing the keys. As long as your paper wallet is safe, your holdings are also safe.
On the other hand, hardware wallets store crypto resources offline, hence give the owner full control of their assets. For this reason, hardware wallets are the best method of protecting cryptocurrencies. Unlike other wallets that are vulnerable to damage, phishing, and hacking, hardware wallets are suitable for long-term storage. There are several hardware wallets in the prevailing crypto market. However, if you are looking to safeguard your crypto assets, the Trezor and the Ledger hardware wallets are your best bet.
If you are after compactness and simplicity, consider the Ledger Nano S. This hardware wallet works through Ledger Live, a desktop application that facilitates communication with the device. The Ledger Nano S supports over 1,000 tokens and coins, including Ethereum and Bitcoin. Comparatively, you can use the Trezor Model T. This second-generation hardware wallet store cryptocurrencies offline. The Trezor Model T supports over 700 coins.
Although the aforementioned crypto wallets can safeguard your cryptocurrency, you should put measures to enhance the safety of your crypto assets. Most importantly, do not leave your cryptocurrency in exchanges. In the same light;
Use strong passwords and two-factor authentication.
Do not disclose your private key.
Do not fall for phishing attacks.
If you are seeking to access your crypto assets faster without compromising security, consider the Ledger Nano S or the Trezor Model T.