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Matic, Bitcoin and Ethereum are cryptocurrencies that are made up of lines of code on a server. Because crypto is entirely digital and has no physical assets, it necessitates some technological expertise. It's crucial to understand where you keep your digital currency and how it could be hacked.

Keeping your Cryptocurrency Wallet safe and secure!

Matic, Bitcoin and Ethereum are cryptocurrencies that are made up of lines of code on a server. Because crypto is entirely digital and has no physical assets, it necessitates some technological expertise. It's crucial to understand where you keep your digital currency and how it could be hacked.

We'll go over the many sorts of crypto wallets as well as some basic security principles. Here's everything you need to know about safeguarding your funds.

It's hazardous to use exchange default wallets.
Many newbies acquire cryptocurrencies on an exchange like Coinbase or Binance and keep their funds in "custodial" wallets on those sites. Exchanges, like any other internet business, are subject to hacking, and as the hub for billions of dollars in daily transactions, they make for particularly appealing targets.

Cold storage and Hot Wallets
If you have more virtual currency than you'd be comfortable having on your person, or if you plan to hold it as a long-term investment, you should store it in "cold storage," according to conventional thinking. This might be a computer that isn't linked to the internet or a hardware wallet, which is a customized USB drive.

However, dedicating a computer to store your cryptocurrencies or investing in a hardware wallet isn't for everyone. The Trezor and Ledger are well-known gadgets that cost between $120 and $220 and add complexity and a few more steps to every transaction by design. Software wallets, on the other hand, are usually free and easy to use, however they are less secure in the long run.

There are three types of software wallets.
The fundamental purpose of a cryptocurrency wallet is to store the public and private keys required to complete a blockchain transaction. Many of them also have features like built-in currency exchange. Desktop software wallets, internet software wallets, and mobile software wallets are the three types of software wallets. Many software wallets can work on multiple devices, hence these categories overlap. Each type provides a unique mix of convenience and security.

- Retail transactions; that is, paying for things with bitcoin or another cryptocurrency — are suited for mobile app wallets. However, because your encryption keys are saved on your phone, if you misplace it, you will lose your coins. However, depending on the sort of mobile crypto wallet you use, you may be able to restore your wallet on a different smartphone if you keep your private keys safe. You thought leaving your phone in a taxi was a pain? Consider how horrible it will be if it is holding thousands of dollars of cryptocurrencies.

- Desktop wallets are programs that you download and install on your computer. They provide you a lot of control over your assets, but they're still vulnerable if they're connected to the internet. A malware infection, a remote takeover of your computer, or a hard-drive failure, even if you're not online, might be disastrous. So establish a habit of keeping track of your private keys and storing them safely.

- A server, usually managed by a cryptocurrency exchange, hosts online wallets. They're useful because they can be accessed from any internet-connected device. The disadvantage is that the website owner normally has access to your private keys. A custodial wallet is one in which someone else has access to your private keys and keeps them for you. So, you're putting your faith in the corporation in charge of your wallet's keys. And there's not much stopping them from simply grabbing your coins from a technological standpoint.


There are a few measures you can follow to keep your passwords and private keys safe, whether you use a hardware, software, or paper wallet to store them. These are some of them:

- Any device connected to the internet is vulnerable, so be wary of any online service.
- Use a strong password to encrypt your wallet.
- When possible, use a hardware wallet that isn't connected to the internet.
- Back up your wallet on a regular basis and keep duplicate copies.
-  Make use of multisignature security to keep control of your funds even if one of your devices is hacked.
- Create, write down, and keep a record of your wallet's mnemonic seed, which is a string of words that can be used to recover your wallet in the event of a hardware failure.
- Passwords and private keys should not be shared.
- Keep in mind that if something looks too good to be true, it probably is.

We think there aren’t enough security measures you can apply to your wallets, and we advise caution when clicking any link on the internet.

Written By

Petrache Ionut

Jun 1, 2022