How To Store Cryptocurrency Safely in 2020

If you’re planning on investing in cryptocurrency in 2020, your first step should be learning where to store cryptocurrency safely. Safe storage allows you to confidently store, invest and trade your crypto. Understanding cryptocurrency storage requires you to have a good understanding of private and public keys.

Difference Between a Private and Public Key

When you open a crypto wallet, you’ll have access to a public and private key. Your public key is linked to your private key. Your private key is used to decrypt information in the same way a password can be used to protect an online account.

Private keys have a seed phrase encoded in them that is never revealed and allows you to access the crypto you already have stored.

Public keys are used when you want to:

  • Send crypto to others
  • Trade crypto

You can think of your public key as an email address for storing cryptocurrency.

Cold Storage vs. Hot Wallets

Cold storage is a great idea because your crypto will reside on a USB drive or other storage device that is not connected to the Internet. You reduce the risk of hacking, and you’re able to keep your currency 100% offline on these hardware wallets.

Hot wallets still store cryptocurrency, but these wallets are connected to the Internet.

Nebeus offers FREE cold offline storage for its active customers using other Nebeus services.

Buying Cryptocurrencies Safely

You’ve chosen your wallet, but now it’s time to buy crypto. There are a lot of options, with hundreds of exchanges for you to use. You’ll have to use your fiat currency to pay for crypto, so you’ll need:

  • Bank account, or
  • Credit card

When signing up for a crypto exchange, you’ll need to focus on:

  • Fees that are charged for purchases
  • Payment methods offered
  • Verification process
  • Reviews and recommendations

You will have to pay a minor fee when transferring funds, so keep this in mind when buying cryptocurrencies. Learn about the limits of the exchange you choose, too. A lot of exchanges will limit the amount of money you can withdraw per day from an account.

The key most important thing is to find a trustworthy exchange that will not scam you out of your money.

*Nebeus takes the safety of its users very seriously and practices the highest security standards including but not limited to Password protection, 2-Factor Authentication, entering a unique PIN for any withdrawal, Inability to change wallet address, Inability to withdraw large amounts without manual verification by our team. Our operating companies are in the EU and UK, along with our data servers upholding strict data protection laws (GDPR).

Nebeus uses both automated and manual verification methods offering three tiers of user accounts. This will depend on the country you are from but typically Passport, government-issued identification and proof of residence are required. For users wanting to reach Tier 3, we also request a selfie photo to be verified.

How to Avoid Common Crypto Scams

Scams are everywhere. As an investor, it’s up to you to educate and protect yourself. The cryptocurrency industry is rife with scams, and these scams can include:

  • Social scams that require you to send a small amount of currency for the chance of winning a big giveaway. Oftentimes, the scammer will impersonate a celebrity or someone popular in the industry.
  • Exchange scams where the exchange takes your money and runs.
  • Ponzi schemes where you enter into a mining pool with other investors and recruit new investors. When the returns sound too good to be true, chances are, you’re entering into a potential scam.

Scammers took in more $4+ billion by scamming others out of their currency.

Store Bitcoin and Cryptocurrencies in Desktop / Mobile Wallets

Most people will choose to store their Bitcoin in one of the following:

  • Desktop wallets that are installed on a computer. The risk of a desktop wallet is that there’s risk of a virus or malware, as well as hardware failure, leading to the wallet being lost.
  • Mobile wallets are optimized for making purchases, and they’re offered in the form of an app. If you lose your phone, you lose all of your crypto in the process.

You can also use online wallets for cryptocurrency storage, but you need to pick your wallet carefully. The goal is to find an online storage provider that offers some form of protection for your private key.

Theoretically, if no protection is in place, the owner of the wallet will have access to your funds.

Conclusion

Storing cryptocurrency has advanced in recent years. You’ll want to consider both cold and hot storage methods to protect your investment. When you’re involved in major cryptocurrency investments, it’s vital to choose your wallet, investment options and exchanges carefully.