There are thousands of scams out there such as phishing attacks that are out to steal your private keys and your funds stored in your wallet. This includes paid Google ads to redirect you onto a fraudulent website where you then enter your private keys unknowingly, or unsolicited messages from random persons on Discord.
Therefore, one of the most important considerations as a cryptocurrency investor is storage and security of your tokens. As an investor, you can choose to store them in a hot wallet or cold wallet, depending on their preference for security or convenience.
Cryptocurrency Hot wallets vs Cold Wallets
A cryptocurrency wallet is a tool that allows you to interact with the blockchain. It does this by helping you create…
Storing your tokens and coins on a hot wallet or exchange might be most convenient, but they are arguably one of the least secure methods to do so.
Hot wallets such as Metamask are very susceptible to theft via security vulnerabilities on your computer. Maybe you saved your seed phrase in a notepad file, or you’ve copied and pasted your private key and a keylogger picks it up without you knowing, these are all areas of vulnerabilities that will compromise your hard-earned cryptocurrencies.
Exchanges are not safe avenues for storage too. They are prone to hacks and theft. Recently, tier-2 exchanges have been targeted by string of hackers and fraudsters, with BitMart recently losing US$150m to hackers and AscendEX recently losing US$77m to hackers — both occurred in December 2021 and among the more than 20 hacks in 2021 where a hacker stole more than US$10m from a crypto exchange.
You’ll never know when you’re made a victim of a security pitfall, the best thing to do today is to invest $100-$200 in a hardware wallet.
Hardware wallet act a impenetrable safe for your cryptocurrencies where nobody will have access your tokens unless you give them the password to it.
Here are 4 of the best hardware wallets to secure your tokens and cryptocurrencies if you’re investing in crypto.