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How To Secure Your Cryptocurrencies

Jun 03, 2018

When purchasing an altcoin cryptocurrency, holding and storing your cryptocurrency safely is an obvious and important consideration. This Crypto QuantShot, which will describe the features associated with various cold and hot storage wallets, aims to help you with the process of selecting a wallet.

In our Crypto QuantShot titled “How Do You Store Your Cryptocurrency?”, we detail the various methods of cold and hot storage. While the storage method will ultimately depend on your preference, hot and cold wallets are some of the most popular storage methods that cryptocurrency investors are known to use.

A cold storage wallet stores a user's cryptocurrencies offline in a physical device which protects the cryptocurrencies from digital attacks. In comparison, a hot storage wallet is simply a digital wallet. It offers the user more flexibility but introduces other risks that are not common to cold storage.

 

Popular Cold Storage Hardware Wallets

On Mobile/Tablet scroll to the right.

Features Trezor One Trezor Model T KeepKey Ledger Nano S
Display Monochrome Screen Full Color Touchscreen OLED OLED
Price EUR€89 EUR€149 USD$129 EUR€79
Cryptocurrency coverage 100+ 500+ BTC, LTC, DOGE, ETH, DASH, NMC 30
Password Backup encrypted on cloud storage encrypted on cloud storage, soon microSD card Paper or Hot storage Only on device with use of recovery sheet

Popular Hot Storage Wallets

On Mobile/Tablet scroll to the right.

Empty th Exodus Blockchain Jaxx Bitcoin Core Coinomi Mycelium Electrum GreenAddress Airbitz
Point of Access Desktop: Mac/Windows/Linux Mobile App: iOS/Android, Desktop: Mac/Windows/Linux Desktop: Mac/Windows/Linux, Tablet, Mobile: iOS/Android Desktop: Windows/Mac/Linux Mobile App: iOS/Android Mobile App Desktop: Windows/Mac/Linux,  Mobile Desktop: Windows/Mac/Linux, Mobile Mobile
Features QR Code Scanner, Free to download Email & Password, Two-Factor Authentification, Free Crypto-Fiat conversion, 12-word Masterseed, Free Free ShapeShift integration, super-passphrase, Free Master seed, hardware integration, encrypted chat, Free Third-part plugins, cold storage integration, Free 2FA, Multi-Sig, integrated with 11 exchanges, Free zero-knowledge encryption, API integration, Free
Cryptocurrency coverage BTC, BCH, BTG, ETH, ETC, LTC, ZEC + many more BTC, ETH, BCH BTC, BCH, ETH, ETC, LTC, DASH, ZEC + many more BTC BTC, BCH, BTC, DASH, ETH, ETC, LTC, + many more BTC BTC BTC BTC

 

What About Costs & Fees?

While the cold storage wallets vary in cost, the hot storage wallets are all free to download. However, integrating wallets with a PC, mobile phone and tablet depend upon a wallet’s capabilities and not all wallets can operate across all three devices. There are no custodian fees charged once a cryptocurrency wallet has been purchased. Wallets generate revenue by offering a service in addition to wallet storage.

The major wallets deduct exchange fees plus blockchain fees and pay the exchange and the blockchain fees to the miners for completion of the transaction. The fees charged to transact on the blockchain depend on the priority of the transaction. If "high priority" is selected, the transaction will be presented to the blockchain with a higher priority and the transaction will likely be processed as soon as possible due the higher fee charged. Other options such as "economy", or "low priority" can be selected depending on whether you would like to pay a lower fee, or do not mind waiting longer for the cryptocurrency transaction to take place. The last common choice is to select a transaction blockchain fee which the user is willing to pay. If users select too low of a fee, the transaction may never be processed at all.

Do I Need To Buy/Download A Cryptocurrency Wallet?

In our previous Crypto QuantShot, we highlighted the various choices you have after purchasing a cryptocurrency. It is not necessary that you purchase a hardware wallet or use a hot wallet. However, the extra security benefits these wallets offer seem to be worthwhile for investors. Just this year, there have been three separate incidents of 51% attacks on blockchain networks, as well as multiple cryptocurrency exchange hacks. Investors who did not store their cryptocurrencies in some form of a wallet, had their cryptocurrencies vulnerable at these moments. We hope the information provided in this Crypto QuantShot assists you in storing your cryptocurrencies safely.