In the crypto industry, security is always the main topic. Buying, trading, storing, and managing cryptocurrencies securely is a necessary skill that every crypto industry user should master. This article will show you how to store cryptocurrencies securely.
Cryptocurrencies are usually stored in wallets, and crypto wallets can be divided into centralized (custodial wallet) and decentralized (non-custodial wallet).
When trading on a cryptocurrency exchange, your assets are stored in the exchange's wallet, which is a centralized wallet that holds the assets of all users in a single place by the platform holder. Except for using the exchange to transfer funds to other exchanges or wallets, which requires you to sign the transaction (on-chain transactions require you to authorize the signing and broadcasting of the transaction before it takes effect), all other operations are off-chain transactions, which means that your operations will increase or decrease the number of assets in your exchange account, but the actual storage of the assets is not in your personal wallet, but in the wallet of the exchange's platform custodian. You therefore need to choose an exchange with high security and reliability. For those who trade frequently on the exchange, it is convenient to store part of assets as needed in your exchange account for flexible use.
If you need to store cryptocurrencies for the long term, a decentralized wallet would be ideal. Decentralized wallets are also known as non-custodial wallets because they do not require a platform to keep them for you as opposed to centralized wallets. No personal information is required to create your wallet and 100% of your assets are stored with your personal wallet, which is traceable on the blockchain at all times. The core of security for this type of wallet is the safekeeping of a personal mnemonic (or private key), which is the equivalent of a password that opens a vault, and anyone with this string of passwords can access the wallet account and transfer the assets at any time. Therefore, under the premise of ensuring the safety and security of your mnemonic (or private key), your assets can not be stolen by other people. CoinEx Wallet provides you with a stable and secure decentralized wallet, download to learn more>>
Decentralized wallets can also be subdivided into several types. If you need to store small amounts of assets for a long time or interact with DeFi applications, it is recommended to use the hot wallet CoinEx Wallet. If you need to store large amounts of assets, you can use the hot wallet along with a hardware cold wallet, which will help you securely store your mnemonics/private keys offline. If you need to collaborate with your team in managing assets, you can use the multi-signature wallet to achieve multi-confirmation prior to the transfer to safeguard your team's assets.
In addition to securely storing currency, you also need to pay attention to the security of wallet operations. It is recommended that you limit the amount of assets authorized by a wallet address before connecting to a DApp to avoid massive theft of authorized assets. Regularly check the authorized DApps connected to your wallet address and disconnect unnecessary connections to protect your assets. When using the wallet app, choose a strong password and change it regularly. Click here to learn more about cryptocurrency security storage and management services>>