This is the safest way to store Bitcoin and other cryptos

Whether you are a crypto trader or investor, the goal is the same for everyone. Making a return on digital coins. But whether you buy and sell your cryptocurrencies during the day or store them for a longer period of time, the most important thing is that your coins are protected from malicious parties.

There are different ways to store crypto, with major differences in security and convenience. But which option best suits your situation? In short: how do you keep your crypto safe?

2FA essential for exchange wallets

The first option for storing your Bitcoin (BTC) or other coins is to use crypto exchanges. These platforms are primarily for trading, of course, but you can also leave your digital tokens here.

Access to this is secured with at least the password of your account. In addition, these platforms also recommend using two-factor authentication (2FA). This means that an additional step is always required with, for example, your mobile phone.

Although this storage option may sound practical, in practice it increasingly appears that this is the least secure choice. Hacks have regularly taken place in these trading environments or scammers managed to obtain login details. Large amounts of crypto have already been stolen as a result.

Practical and relatively safe intermediaterm

Another option is a software wallet. This is a digital variant, where the storage location is on your own computer. These options are often free and you can easily move cryptocurrencies from your exchange to such a software wallet.

Although this form offers better protection against hackers, because in that case they have to get into your computer, there are still some risks involved. Malware or one click on a phishing message can give uninvited guests access to the wallet.

The degree of protection really depends on how safe your computer is and how you handle it. The thing is that this way you have complete control over the crypto coins. While with a crypto exchange you just have to hope that they don’t go under or do something crazy with your coins.

Hardware wallet: less practical, but safe

A third option and therefore the safest choice is a hardware wallet. This is a small device, like a Ledger, on which you can store your digital tokens. These devices often contain extensive security mechanisms to properly protect your belongings. In addition, hackers cannot easily get into the device because it is offline.

However, this also makes it less practical to choose this option. Constantly moving your tokens to trade, for example, is time-consuming and expensive in the long run. However, if you are an investor and want to own cryptocurrencies for a longer period of time, this option is certainly the best choice.