Storage & Safety
Unlike the fiat currencies, cryptocurrencies don’t have a physical form because they are virtual currencies. In the crypto world, you will be dealing with only public and private keys. Let me explain with an example. Let’s think of the candy machines which are usually kept in the shopping malls to attract kids. How will you get candies from those machines? You will put the coins in the slot and the candies will pop out from the opening. Right? Can you open that box and take your coins back? No. Because only the machine owner has access to open the box. Likewise, anyone can use the ‘public key’ to send cryptos to you, but they cannot use the same to withdraw them. Because the ‘private key’ is accessible only to you and you can use it for either withdrawal or sending cryptos to someone else.
Generally, the private keys are stored in highly secured wallets. The term “wallet” is very popular in the crypto world. Like the traditional wallet you keep in your pockets for storing money, a cryptocurrency wallet can be used to store the BTC, ETH and other popular altcoins. Finding the secure wallet to store your cryptos is very important because you may lose your coins if it is not done properly. Does it sound scary? Maybe. That’s why you need to spend a good amount of time to learn about the various types of storage available to store your cryptocurrencies. Then, you can select the best one based on your needs.
Hot or Cold Wallets for storing your cryptos?
So, you need to protect your private keys in a highly secure manner so that no one can hack them easily. Always remember this: “If you lose your private keys, then you can forget about your cryptos”. Now, how to store your cryptos in a secure way? What are the available options? Basically, there are two types of wallets (also called storages) available for storing your cryptocurrencies which are given below:
1. Hot Storage or Software Wallet
If the storage option you have chosen includes a direct connection to the internet, then it is hot storage. Examples of this type of storage include mobile wallets, cloud wallets, and desktop wallets. Of course, hot storage are the most convenient options for storing your Bitcoins, Ethers or any other cryptocurrencies. But, will that help you to keep your cryptos 100% secure? No. Hot storages are considered as riskier because of their direct connection to the internet. You might have heard about the story about Biffinex wallet. Even though Bitfinex wallet had the extra feature of multi-signature protection, hackers were still able to steal bitcoins worth approximately $72 million in the year 2016. So, hot storages are not advisable, especially if you have invested a lot of money on cryptos.
2. Cold Storage or Hardware Wallet
If you are an investor who is not trading on bitcoins and other cryptos on a regular basis, then you can go for a hardware wallet. Unlike the software wallets, a hardware wallet is not connected to the internet and stays offline. Because of the offline storage, you don’t need to worry about the possible security threats such as malware, viruses etc which could attempt to steal your personal information. That’s why a hardware wallet is best suited for storing bitcoins and other cryptocurrencies. Even though the hardware wallets are available in several forms, the most popular one is the USB version. It will look very similar to the traditional USB drive. It is small, lightweight and easy to use.
Where to buy your hardware wallet?
The best place to buy a hardware wallet is from your local retailers because you can easily contact them and get customer support in case of any issues. HashArabia.com is a specialized retailer of the leading hardware wallets such as the Ledger, Trezor, Keepkey etc. and offers its services to not just customers in the UAE but also in other countries in the GCC namely Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain and elsewhere.
Every order also comes with 2 years warranty and toll-free customer support.