News about cryptocurrency thefts often appears nowadays. How can we protect our crypto assets? Generally, there are three methods:
Hardware Wallets
Hardware wallets store private keys offline, so no one can access your private key except you. This directly eliminates the risk of digital hackers attacking the wallet—hackers simply cannot access the device and its private keys. When using a hardware wallet, even if hackers successfully control your computer, they cannot steal your private key and access your cryptocurrency. Your private key remains offline, limiting the risk of being hacked. In short, hardware wallets are the safest choice for storing cryptocurrency because they securely keep your private key in an offline environment and provide accurate transaction details through a tamper-proof screen.
Recommended wallets: Coldlar Wallet, Ledger
Software Wallets
Software wallets are applications for managing cryptocurrency. You can install them on your computer or smartphone. You always control your private key; it is not shared with or controlled by third parties. The main advantage of online wallets is easy access from any internet-connected computer or other devices. Recommended wallets: MetaMask, imToken
Exchange Wallets
Most people are introduced to cryptocurrency by buying coins on an exchange and then leaving them on the platform, especially if they intend to continue trading. While exchanges have basic security, most are not security firms, and you are merely entrusting your private key to whatever security measures they choose to implement. If a hack occurs, your funds can be lost. Therefore, it is crucial to choose reputable centralized exchanges.
Recommended exchange wallets: Coinbase, Binance, Kraken
In summary, hardware wallets (cold wallets) are the safest, but you must keep your private key secure and never upload your private key information online. Next are software wallets (hot wallets), which are not as secure as hardware wallets but are easier to interact with; many active crypto enthusiasts prefer these. Lastly, exchange wallets are convenient for spot and contract trading, but you must pay attention to their security.
NFA: This article does not constitute investment advice. All products need to be carefully vetted.
