When starting out with cryptocurrency investing, we must make decisions about the method of storing digital currencies. There are various solutions available in the market, each offering different levels of security. In this article, we will explore the most important methods of storing cryptocurrencies and practical tips on how to protect your funds.
Differences in Storing Cryptocurrencies and Fiat Currencies
Cryptocurrencies differ from traditional money in that they are not stored in bank accounts but in a digital wallet. There are two main methods of storing cryptocurrencies: on cryptocurrency exchanges and in hardware wallets.
Storing on a Cryptocurrency Exchange
One option for storing cryptocurrencies is to keep them on an exchange, such as Kanga. Cryptocurrency exchanges offer a convenient way to trade and store funds; however, holding large amounts of cryptocurrencies on exchanges carries certain risks. Exchanges are frequent targets of hacker attacks, and in the event of their collapse, you could lose your funds. Therefore, we recommend storing only small amounts needed for current transactions on exchanges.
External Wallet
One of the best ways to store cryptocurrencies is an external wallet, especially a hardware wallet. Hardware wallets, such as Trezor, offer a high level of security because private keys are stored offline, making them resistant to potential cyberattacks. Various types of Trezors are available in the KangaShop and are a solution for long-term storage of larger amounts of cryptocurrencies.
You can find the link to Trezors here.
Summary
Safely storing cryptocurrencies is crucial for protecting our digital assets. Cryptocurrency exchanges, such as Kanga, offer convenient solutions for ongoing trading, but we recommend storing only small amounts on them. For larger and long-term investments, the best solution is hardware wallets, such as Trezor, available in KangaShop. By following these practical tips, you can minimize the risk of losing your funds and enjoy investing in cryptocurrencies.
