Before investing in cryptocurrency, where you decide to store your purchase is important. From online exchanges to wallets, there are many possible storage options available to you. Nowadays, crypto is integrated into platforms, such as social media, payment systems, the banking and financial services industry and according to Increditools, it can also be found in products from corporations such as Tesla.
Understanding how to buy and store crypto will be key to keeping your currency safe. Many self-deemed crypto experts will advocate for one specific method. In purchasing crypto, you’ve got several ways to go about it. Each method has its own pros and cons, appropriate for different people. Ultimately, you want something easy, with minimal fees, and that’s secure.
Just like with any sort of online transaction, you want to do everything you can to guard against the possibility of theft. Here are some of the best ways to securely buy and store crypto, from Bitcoin to Ethereum, and other coins.
Use an online exchange
An online exchange stores your cryptocurrency on its platform. It’s simple and convenient. However, you are technically leaving your crypto in another party’s possession. Should that platform get hacked or if your account is compromised, you could potentially lose your crypto coin. It is rare, but it can happen. Nonetheless, online exchanges can store your crypto coins with little costs attached.
Buy from a Bitcoin ATM
A Bitcoin ATM is an excellent way to buy crypto. You can put in cash and buy crypto this way, transferring it into your wallet. If you’re selling crypto, you can turn it into cash right then and there. It’s all done through the use of a crypto wallet. The transaction can be done anonymously, although some verification is understandably needed.
If you want a secure way to buy and sell cryptocurrency, a Bitcoin ATM like Bitcoin4U is simple and easy. It does not require the same registration of private information that an online exchange does. Best of all, there are many Bitcoin ATMs worldwide, available in convenient places like gas stations or local shops.
Use a hot crypto wallet
A hot crypto wallet is an application you download to your device, storing crypto online for you. It is an excellent method if you are interested in buying from a Bitcoin ATM and prefer to not have your coin on an uncontrolled platform. Downloading and registering a crypto wallet on your smartphone, for example, is preferable to a lot of people. There is, of course, always a security risk if someone successfully gains access to your device.
Use a hardware wallet
A hardware wallet is putting your crypto on an offline storage device. It keeps it totally separate from any online exchange or market and protects your crypto unlike any other method will. In terms of storage, there is nothing better. That said, you do have to purchase the device, which isn’t always convenient and can be costly. If you lose the physical hardware, you also run the risk that you won’t be able to recover the coin.
When buying and storing cryptocurrency, use a hardware wallet for the bulk of your investment. Use a hot wallet for small amounts of crypto you want to trade. Write down all recovery phrases for your crypto wallets. Save recovery phrases in a secure location that is only accessible to you. Lastly, do not share any recovery phrases or private keys with anyone. Do not save that information on your computer, either. Write it down and keep it in a remote location of your choosing.
Online & offline storage methods
Some hardware wallets will connect to online exchanges, posing a security hazard. A hacker cannot get into an offline device without physically taking the device. When a device connects online, that’s where the risk presents. The odds are low, fortunately. A lot of people use wallets that connect online with no issue. However, if you have significant crypto funds, you may opt for the offline route.
Buy physical Bitcoins
There are different services that offer investors to buy physical Bitcoins. These are tamper-proof designs that cover a specific amount of Bitcoin. However, they aren’t the easiest to find and are expensive. That said, they may be something to look into for major investors. Physical crypto has not gained a lot of popularity. As mainstream audiences continue to open themselves up to buying and trading cryptocurrency, the option of physical coins is very appealing to some.
Once you’ve acquired sufficient cryptocurrency, there’s a significant risk of losing a lot of money. You may want to start doing regular backups. This way, if your computer or hardware fails, you still have a way to recover the digital currency in your wallet. Backup the wallet.dat files and store this backup in multiple secure locations, i.e. USB drives, external hard drives, and CDs. For high-value crypto coins, it’s added protection that you will be glad to have.
Don’t give out private information
There is a high demand for crypto coin. If you freely give out private information, click on malicious ads, or leave your passwords in the wrong hands, it opens you up to hacking. If someone gains access to your accounts, there’s not much you can do. Guard your private information with care. Be careful with what websites or sources you purposefully expose your online identity.