Cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin are stored in something called a “wallet”, which can be accessed using their “private key”, the cryptographic equivalent of a super-secure password. A crypto wallet stores the private keys that give the user access to their cryptocurrencies, allowing them to send and receive digital currencies. There are different types of cryptocurrency wallets available that adapt to different requirements in terms of security, reliability, accessibility, etc. Cold storage (or offline wallets) is one of the safest methods to store bitcoins, as these wallets are not accessible via the Internet.
A hardware wallet stores private keys on a secure physical device, making it virtually impossible for hackers to steal your coins. It is backed by security experts and keeps your private keys offline, making your cryptocurrency inaccessible to anyone other than the holder of specific access codes. However, there are still risks associated with hardware wallets. It's important to use a trusted hardware vendor and protect your hardware wallet in a safe place, as a physical device can be stolen or destroyed.
Meanwhile, blockchain hackers are not only targeting cryptocurrency holders, but also cryptocurrency exchanges, according to Atlas VPN. Online wallets are the easiest wallets to set up and use, but they are also the most susceptible to cyber attacks. That's why it's important to keep your hardware wallet secure or use a trusted wallet provider like Coinbase. Cold storage wallets are generally considered a safer way to store cryptocurrencies compared to a hot storage wallet.
A paper wallet or offline wallet is a printed sheet of paper that contains your private keys and QR codes that are used to facilitate cryptocurrency transactions. Once you know more about each storage method, you can choose the wallet (or wallets) that will keep your cryptocurrencies safe. Even though the odds of this are low and many people use hot wallets without problems, it's probably not a risk that you want to take with significant crypto funds. I recommend buying a hardware wallet for most of your cryptocurrency holdings and downloading a hot wallet for cryptocurrency for easy access.