Yesterday, I was enjoying a coffee with my friend at a local coffee shop and the topic of cryptocurrencies popped up. He’s only getting started but wants to do it the right way so he asked me how do you store cryptocurrencies safely? Can you store them on your laptop?
The short answer is no. You’re not supposed to store cryptocurrencies on your laptop.
Since you landed on this page, you’re probably wondering what’s a good alternative and how can you store your cryptocurrency safely and be able to hold it for extended periods of time and possibly sell it for a huge profit.
In this blog post, we’ll explore the best practices so that you never fall victim to hackers and scammers. Be sure to read until the very end if you’re like to see a bonus crypto that I like.
Every now and then, when I browse crypto-related subreddits and other newsfeeds, I hear people’s stories about how they lost their tokens. Usually, it goes as follows: someone stocks up on a bunch of undervalued cryptocurrencies and withdraws them to their wallet because it seems like a safer alternative to storing them on an exchange.
However, what many people fail to realise is that if you have a crypto wallet installed on your laptop and you’re connected to the Internet, you might lose your entire investment due to a virus or a hacker.
Connecting to a public WiFi increases that risk.
If you store your cryptocurrencies on your day-to-day laptop that you use to browse the internet, download data, use your email and so on, then you put your holdings at a unnecessary risk.
Most people neglect this part because they think they’re untouchable but please realise that anyone can get hacked if they’re not careful enough.
Best Ways to Store Your Cryptocurrencies:
The most recommended way is to simply invest in a hardware wallet like Ledger. It’s an affordable solution that most people should go for. If your portfolio value is above $200, then you should already consider getting a hardware wallet.
Again, if you’d rather not spend any extra money, then you can always use a paper wallet. Basically what you do is write down all your private keys on a piece of paper and store it somewhere safe and in a box that can survive flooding. Ideally, you should have a few copies stored in independent locations.
What you should always avoid is storing your cryptocurrencies on any exchange if you’re not trading. Crypto exchanges do get hacked so you always want to keep your crypto on your own wallet with your own private keys.
Best Practices for Trading Your Cryptocurrencies Safely:
I’d also like to share some common safety practices as far as trading is concerned.
First of all, always use 2 Factor Authorisation (2FA). This step alone drastically decreases the chance of falling victim to a hack. Also, don’t forget to store your 2FA keys so that if you lose your smartphone, you can always restore your 2FA codes on another mobile device.
Secondly, ensure your computer’s firewall is on.
Ideally, avoid public WiFi and use a Virtual Private Network (VPN).
Last but not least, triple check the withdrawal/deposit addresses. If I’m sending a crypto to an address for the first time, I like to send a small amount first as a test to make sure it goes through and then I send the rest. This step can save you a potential headache should anything go wrong.
Bonus: My Favourite Crypto Picks
As promised, here are some cryptocurrencies that I’m holding. Again, please don’t take this as financial advice and always do your own research.
POWR Crypto is one of the projects I believe in because I think solar energy is a big part of the future. I’ve got POWR tokens after reading the review from London Letter which I recommend you take a look at.
Definitely check out their website if you’re looking for undervalued cryptocurrencies: londonletter.org. It contains a lot of really useful information regardless whether you’re a beginner or a more advanced investor.
Another project that I love is Ethereum. If you’re into crypto then I don’t have to introduce it. I love their technology and how many big players (like Coinbase) invest in it. When the market recovers, I believe that Ethereum will put many cryptocurrencies to shame even more than it did already.
If you were getting started with crypto and wondered how to story them properly, hopefully I’ve pointed you in the right direction.
As a geek, I love the cryptocurrency industry but please remember it’s extremely volatile so if you have a low risk tolerance then it’s probably not for you.