Before you invest in bitcoin, you need to know the associated risks because the bitcoin and crypto market is highly volatile. Investing in crypto is an exciting thing and you can invest in these tokens and coins to earn a high return. Once you invest in bitcoin, there arises the need of keeping it safe. You cannot store or keep your coins in your physical wallet because it is available in digital form only. Visit at: https://desire-crypto.com/
There are two types of wallets available. Those are:
- cold wallet
- hot wallet.
It is better to use a cold storage for your coins because these wallets are hardware based and safe. You can use a device and connect it with your system to access your wallet. Cold storage wallets are less prone to hacking because they are not available in your Smartphone where you are using some third-party apps. But you need to connect it with your computer to access your wallet and your device will be connected with internet connection. So, once you connect it with the internet, hackers can hack your wallet and steal your coins. In this case, you can use a malware protection software and antivirus system in your computer to keep your wallet safe.
Safety of Cryptocurrency:
Major exchanges have their own apps and you can use their apps in your phone to create your wallet. But, these are the hot wallets which can be hacked anytime. To keep your account safe, you can choose a platform where cold storage is available. It can be hardware based or a paper wallet. You can enable two-step authentication to keep your wallet safe.
- How would you use your cold wallet? You can use the device to connect your computer with your wallet. It is like a pen drive. So, you will get access by connecting it with your device. Once you link your device with the wallet, you need to enter the private keys to access your wallet. Do not share this private key with anyone because this is the main key for your wallet and people having this key can easily access your account. If you want to receive funds from another user then you can share your public keys or QR code available on your wallet.
- Apart from that, another option that you have is the paper wallet. In this case, you can write down your private and public keys on a paper and use it in future to access your wallet. Make sure, you must keep your papers in a safe place. Otherwise, losing your key will lead to many inconveniences. The major problem will be you will lose access to your account.
- It is hard to restore a wallet and you need to take the backup of your wallet time to time. Make sure, you should not connect any app with your device while you trade bitcoin from your wallet. Cold storage wallets can provide utmost safety because hackers cannot access your account if they do not have your device. Along with that, they need to know your PINs and password to access your account, after connecting your device with their system.
Risks of cold storage wallets:
It is like a penned drives and it can be damaged. Apart from that, your device can be stolen or it can be damaged by electromagnetic disruption. In this case, you can lose your funds instantly because if you do not access your account and wallet then you cannot withdraw your funds from your crypto account.
Apart from that, people prefer to trade bitcoin by hiding their identity and they do not want to disclose their identity. If you use a cold storage then you cannot invest in bitcoin anonymously. Once you connect your device with your system, your identity will be shown on the network.
Your family members cannot access or withdraw your funds or investment from your crypto account after you die. If you do not share your private key with your family members then they cannot access your account after you die and it will lead to a huge loss.
You can use a cold or hot storage by creating your account on Bitcoin era. Traders around the world are highly acknowledging it.