Just as we keep cash or cards in a physical wallet, bitcoins are also stored in a digital wallet. Digital wallets can be hardware-based, web-based, or even kept secure by printing the private keys and addresses used for access on paper. Using a hardware wallet, sometimes called “cold storage”, is widely accepted as the safest method for storing cryptocurrencies. 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.
Most cryptocurrency holders use hot and cold wallets. Hot wallets are useful for frequent trading, while cold wallets are better for long-term retention of crypto assets. There are many different types of crypto wallets available, but the most popular ones are hosted wallets, non-custodial wallets and hardware wallets. Each type of wallet has its own advantages and disadvantages, so it's important to understand the differences between them before deciding which one is right for you.
One of the leading hardware portfolios is Ledger Nano S. It allows you to sell, buy, manage and exchange your cryptocurrencies with a single application securely via your desktop, tablet and smartphone. It supports more than 1500 tokens and 27 coins. Ledger's advanced technology for hardware wallets ensures the highest level of security for your crypto assets.
Its products combine a proprietary operating system and Secure Element that are designed to protect your assets. It gives you the power to control and own your private keys. ZenGo puts simplicity on the table by eliminating private keys, passwords and secret phrases. Instead, it has facial biometrics as an authentication tool.
ZenGo has its own security mechanisms with two secret keys, one stored on the user's mobile device and the other on ZenGo servers. Both keys are required for transactions. This is how ZenGo says it eliminated a single point of failure. ZenGo also acts as a savings account to earn interest on the betting cryptocurrency and you can restore your ZenGo wallet with your face map on any device.
And finally, to seal it in your favor, ZenGo charges absolutely nothing like transaction fees.Exodus is another great option for managing your cryptocurrencies as it allows you to send, receive and exchange them with its easy-to-use wallet that works on computers and mobile devices. You can manage your crypto assets securely on Exodus using the Trezor hardware wallet that comes with advanced security. In addition to this, all your assets remain secure offline on Trezor hardware.Trust Wallet is one of the safest and most reliable crypto wallets used by millions of people worldwide. It is designed for those who want an easy approach to managing their cryptocurrencies and is available for Android, iOS and desktop devices.
Trust Wallet supports more than 160 assets and 40 blockchains, providing you with an easy platform to store your tokens and coins in a single wallet.BitPay also allows you to manage and exchange cryptocurrencies with full control over them. With BitPay, you can generate multiple wallets, transfer funds, have fun with testnet coins and much more. BitPay's non-custodial, open-source wallet doesn't allow anyone to hack your assets; even BitPay can't accept your money. Improve your security with biometric authentication, PIN and private key encryption.MyEtherWallet has connection to Ethereum test networks such as Ropsten and is compatible with most hardware wallets such as Trezor, Ledger etc.
Make sure you write down your private key which is presented as a random phrase of 12 words. Keep it in a safe place; if you lose or forget this 12-word phrase you won't be able to access your cryptocurrencies.Offline cryptocurrency storage is considered the best option from a security standpoint, and many platforms use it to protect most of their own cryptocurrencies. Non-custodial wallets don't rely on a third party or a “custodian” to keep their cryptocurrencies safe; that's why having a highly secure crypto wallet is more important than ever.There are different methods of cold storage of cryptocurrencies including creating your own free paper wallet (which we will discuss later). While companies that offer crypto wallets may offer some guarantees to customers and users, the Federal Deposit Insurance Corporation does not currently insure digital assets such as cryptocurrencies.Cold storage wallets are generally considered a safer way to store cryptocurrency compared to a hot storage wallet; one example is Electrum which only trades in Bitcoin - a currency that Electrum is uniquely equipped to support.Ledger has long been a trusted name in the cryptocurrency world but the data breach is a good reminder to be careful online especially when it comes to trading crypto assets.A highlight is its Atomic Swap feature which uses a decentralized cryptocurrency exchange hosted within the wallet itself to exchange coins without third parties.Most people don't use hardware wallets because of their greater complexity and cost but they offer greater security than other types of wallets.