Which started as an unknown entity has become a household term – “cryptocurrency”. Crypto trade had a spectacular year and whether it was going down or up, it had the attention of everyone. Cryptocurrency has gained enough popularity and confidence that the volume of trade has increased manifold.
Along with the need for reliable exchange platforms, the need for digital safes for digital assets has increased too. These are known as wallets similar to vaults at the banks. The security provided by cryptocurrency wallets is so good that if you forget the password, it is likely you will lose your assets.
CoinSwitch provides the ultimate combination of an exchange platform along with a wallet. Nowadays Ripple is one of the most stored cryptocurrency. You can find out the ripple price INR to store your crypto, get access to the opinions of the experts and be a part of the crypto community after getting accurate information. Get the best overview of the crypto economy and enjoy profits with this robust exchange platform.
Hot wallet –
Any wallet that connects to the internet is called a hot wallet. These can be in the form of apps on your phone, computer, or tablet. The use of hot wallets for quick transactions is convenient, especially when you need funds on the go. You can withdraw your assets and make transactions anywhere in the world. The disadvantage of this wallet is that it is also vulnerable to attacks and under extreme circumstances, you may end up losing all your assets.
The solution for this problem is that you can store a fraction of your cryptocurrency in these wallets which allow you to conduct transactions, but the majority should be stored in wallets that cannot be hacked or compromised. Just like with conventional currency, it is unwise to store all your cryptocurrency in one place.
Exchange wallet –
Holding crypto in an exchange wallet is not the same as holding it in your personal wallet. Most investors would urge you to invest in a personal wallet to secure your funds. The exchange wallets are akin to custodial accounts provided by the exchange platforms.
If the exchange platform gets compromised, then the exchange wallet can get compromised. The user of this wallet type is not the holder of the private key to the cryptocurrency that is held in this wallet.
Website wallets –
There are a lot of websites that provide the wallet facility and you can avail of that free of cost till you do a transaction. Although these may seem convenient, the safety of your funds may be lacking. If you wish to keep a small amount in these wallets, it is recommended to do a proper background check before you use it.
Hardware wallets –
Hardware wallets are also known as cold wallets. These are the best options for storing your crypto in terms of security. They are not connected to the internet and neither are they connected to your computer. This makes them safe from not only online predators but also viruses. The most common hardware wallet is the USB driver. It is small in size and easily portable. It requires a password or a thumbprint to access it.
This kind of wallet is generally open-source and that means the community decides the safety level rather than the company selling it. There is another type of wallet which comes in the form of a card like a credit card. It has a chip and can only be accessed by the owner using secure passwords.
Paper wallet –
This is another type of cold wallet that is popular. You can generate a paper wallet off of websites and create public and private keys. The cryptocurrency can only be accessed if you have that piece of paper. Most people laminate this paper and keep it safely in bank lockers or other safe places. These are safe as they have no other interface other than the piece of paper and the blockchain.
Physical coin –
This way of storing cryptocurrency has been used by Bitcoin. You can purchase an actual coin, whose value is predetermined. The coin comes with a tamper-proof sticker. However, it is advisable to note that you may end up spending a lot on the curation and shipping of the coin as it is specially made to order.
There are places in the world where ATMs for cryptocurrency have been established. The need for trade and exchange is paving the way for creative storage solutions. In a matter of a few years, there may be more options to store and exchange cryptocurrency.
There may even be ATMs that convert crypto into currencies and you can withdraw the same from every corner. For example, if you wish to trade Ethereum for INR, you can simply enter the Ethereum you wish to get exchanged and the Ethereum price INR will decide how much cash you get.
With crypto being used for mainstream purposes, there is a high chance that regulated storage for the entire world might be available a few years down the line.