Today, cryptocurrency wallets are the only way to manage, sell, buy or keep track on cryptocoins. The idea of digital money is senseless without them. Whenever you buy bitcoins, ethers, or any other cryptocurrency or tokens, you’ll need to store them in a single-use or multi currency wallet app.
According to the Forbes analytics, about $21 billion of funds are stored in the cryptocurrency wallets with lost access. The main reason is simple: people forget their passwords, as they have several wallets with different levels of security. While severely protecting their wallets from bad actors, owners end up in a trap without ways of recovering access. That’s why the solutions for simplified access and funds protection are becoming popular at the cryptocurrency storage market. In this article, we’ll review the types of wallets existing on the market and give some tips on how to make a cryptocurrency wallet safe and easy to use.
How to store private keys for the cryptocurrency wallet?
As a matter of fact, cryptocurrency wallets don’t keep your money, they store private keys for authorization and transaction management. A private key is a hexadecimal secret code that allows you to spend cryptocurrency, and looks similar to this:
Despite being long and complex, it is still insecure, similarly to a generic password, which gives the access to your wallet to anyone who’ve seen it. It means that you must be extremely careful and never share them.
The simplest way to store such “password” is to write the key on paper and keep it somewhere in a safe or a bank lockbox. If you want to store it in a more sophisticated way, take a look at the existing solutions. There are a lot of storage systems for different devices and all of them can be divided into two general types: hot and cold.