Where to store your crypto?
With your crypto, the most important thing to consider is how you store it.
Crypto doesn't have the same protection as money in a bank account, so you are responsible for your own holdings.
If you lose access to your crypto, it is more than likely gone. Fun Fact: It is estimated that almost 3.7 million Bitcoin have been lost forever.
There are several ways to store your crypto, the best-being hardware wallets or applications.
Hardware wallets are physical devices that store your cryptocurrency offline. They offer high levels of security and are generally considered the safest way to store crypto. Examples include Ledger Nano X, Trezor and KeepKey. The main drawback is the cost of the price but is worth it if you're storing a lot of capital. The device costs from £60-£150
Software wallets are applications that you can download onto your computer or smartphone. They can offer a good balance of security and accessibility. Examples include Exodus, MyEtherWallet and Atomic Wallet.
Exchange wallets are wallets provided by cryptocurrency exchanges. They are convenient but can be less secure as they are vulnerable to hacking attempts. After what happened with FTX I personally would not recommend this. It is generally not recommended to store large amounts of cryptocurrency on an exchange wallet. This is looked at as the simplest way to store your holdings. However, there is a risk of leaving it in this party’s possession. If the exchange were to liquidate or shut down, your holdings would likely be gone.
Paper wallets are printed copies of your public and private keys, which are the essential components of your wallet. They are an offline way of storing your cryptocurrency but can be difficult to use and have some security risks.
