13.9 min read
The best way to store crypto in 2023 ▲ How to store crypto in cold storage and online
Here you'll find the safest way to store crypto, getting answers to questions like "How to store crypto on Ledger Nano N" and "Is Metamask safe to store crypto"
Written byAlex Crypto
April 6, 2023
Highly profitable investing in the modern context with more than $3 billion of stolen crypto is impossible without the use of tools to ensure its reliable storage. That’s why it's so important to find the best way to store crypto to be sure that it protects well from hackers and scammers. For sure there are so many different options available for investors today but to find the safest place to store crypto you will need to spend more time analyzing the advantages and disadvantages of different systems. On this page below you will find some details about the various ways of storing crypto so you can use it to find the best for yourself.
What is the best way to store crypto?
It's not that simple to find the answer to the question about what's the best way to store crypto, mostly because there are significant differences between available methods. That's why diversifying investments can be the best decision for simple risk reduction, with the possibility of not losing everything if your storage options are compromised. At the same time diversity can be the best option for everyone, so in other cases sometimes it's better to choose for storing the hardware wallet. But it's important to remember the dependence of efficiency on careful use.
Custodial wallet vs Non-Custodial wallet
The key point to start with is choosing the best wallet to store crypto based on an analysis of all the fundamental attributes of the alternate approaches. And the first decision you need to make will be about choosing between wallets with and without storage. Here's some important information about custodial wallets:
- Managed by a third party
- Created for your comfort
- You can contact support 24/7 if you lose your private key or have other questions
At the same time, the non-custodial wallets have no third-party guardian, and here are their main features:
- Much faster transactions
- There is no third party, meaning full control of your assets
- No custodial fees
For sure each of these wallets can be the best place to store crypto, but with the non-custodial ones you will have full control of the private keys. Most custodial wallets today are web-based, so it can be quite difficult to find really secure exchange wallets for a safe store of your coins.
Cold wallet vs Hot wallet
As you begin to learn how to store crypto safely, you may realize that this process is difficult to understand because it has quite a few rules and various factors that require analysis. And to find the best way to secure storage you will also need to analyze the attractiveness of the cold and how wallets are because they are the same interesting for investors today as the custodial and non-custodial ones.
All the main attributes of cold wallets are below:
- The private keys will be held in an offline environment
- Lots of different options will be available here
- Possibility of selecting extra security features
But before beginning to understand how to store crypto in cold storage in more detail it's essential to learn more about hot wallets, to see what is the best option for you. And here is a list of the most important features of hot storage:
- The only type of online storage with simple access through a PC or phone
- No special tools are required to store private keys because they are stored in the application/software itself
- Internet connection, which allows you to use it with web applications
Being able to access such a selection of available storage options should make the whole selection process really easy for the investor.
The safest way to store crypto
It's not that simple to find the safest way to store crypto mostly because each of the available options has some pros and cons. At the same time, most experts are sure that the best wallets to store crypto are the hardware wallets mostly because of a guarantee of reliable storage of personal keys by using physical devices in offline mode, closed from investors' crypto addresses.
How to store crypto in cold storage
For a better understanding of how to store crypto on a cold wallet, it's important to learn all the main features of this storage type. Also, for the investors, it's better to buy the storage from the manufacturer directly. And here is a simple instruction about how to store crypto offline:
- Make the connection of the storage device to the РС.
- Download the software included with the wallet onto the device you are using.
- Wait for the start phrase or backup code to be generated.
- Create separate wallets for each type of cryptocurrency in your investment portfolio.
- Set up a unique pin code.
- Add crypto to the corresponding wallet by clicking the button with its address!
Among the best options for those who are searching for where to store crypto are Trezor, Ledger, and ELLIPAL. The main difference between the first two and the ELLIPAL is that the last one has no physical connection to the network. At the same time, Trezor and Ledger are connected to the PC physically (via USB cable), and users can view their coins with no PC or broadband internet connection.
Ledger Nano X and Ledger Nano S: limits and supported crypto assets
The Leger is a functional and easy-to-use hardware wallet. It is the NO. 1 in the world and mostly because of its numerous pros such as:
- 5 500 assets can be supported by Ledger;
- free Ledger app for fast and secure swaps, purchases and staking;
- more than 5 500 supported currencies;
- easy online storage via desktop or browser!
So what crypto can you store on Ledger Nano X? These hardware wallets can be used for the storage of more than 1,800 cryptocurrencies including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Dogecoin (DOGE)
- Polkadot (DOT)
- LINK Chainlink (LINK)
- Cardano (ADA)
- Litecoin (LTC)
- Stellar (XLM)
At the same time, there are so many assets that can be stored in your wallet, and not in the Live app (for example, Binance Coin (BNB) EOS (EOS) Cardano (ADA)). Also, more than 107 digital currencies are supported on Ledger Nano S, but you can't use it to store the fiat currencies.
One more important question here is how much crypto can I store on Ledger Nano S. And it's really great that there are no limits, so you can choose for yourself how much to keep on your Ledger.
Storing crypto online
So you know how to store your crypto offline and now it's important to learn about online storage to find the main differences between these two popular options. But for those who prefer to store their coins online, hot wallets also will be available. They can be used on PCs or desktops. Here are the main reason for using this option as the main method of storing crypto:
- Easy to use
- Full control over crypto
- Almost free
- Speedy sending and receiving
- Come with a unique phrase for a fast recovery
Recovery and seed phrase
During the whole process of searching where to store crypto seed phrase will be one of these concepts that traders should learn first. So seed phrase is a series of words that were generated randomly and can be used as the master password for the wallet.
For sure it is the best way to store crypto seed phrase because it's easy to use and you can always write it down to make sure that no one will steal crypto.
Best wallets to store crypto
Digital security has pros and cons so investors should start by analyzing that information. And as was mentioned above in TOP-5 the best wallets are:
To find the finest learn about each option for crypto storage, check if they can provide a high level of security, protection, and validation of the transaction information.
How to store crypto safely
To figure out what is the safest way to store crypto you will need to analyze all the features of each of the available options. Also, here are a few more simple tips to help you:
- For secure trading of smaller amounts use a hot wallet.
- Have a physical recording of all your crypto wallet recovery phrases (just write it or use the special steel tools).
- Use the cold wallet for storing the vast majority of your crypto!
You should find some really secure locations for saving these phrases and never share them with others.
Two-factor authentication is your friend
2fa authentication is the best way to improve cryptocurrency exchange account protection mainly due to the extra "factor" added to the identification step.
Use non-custodial wallets
When you try to find the most secure way to store crypto, use non-custodial types of wallets such as cold wallets or physical wallet devices (Ledger, KeepKey, Trezor, etc.) with the offline storing of the private keys.
Check for phishing and malware
You need to regularly check these two scam types to be sure that your coins are in security. Talking malware means malicious software the main task of which is the crypto mining on the victim's device without detection. Phishing checking is also important because this type of scam can make victims give up their recovery keys or personal data.
Public Wi-Fi is not safe
If you want to minimize the risks of losing your private keys and crypto then never use public Wi-Fi for any type of digital transactions. And don’t forget to update the antivirus regularly.
Where to store the crypto seed phrase
When you will find the best way to store crypto offline and options for online storage spit the seed phrase and use special secure capsules or secure steels (simple tools for the physical store of the seed phrase). Also, for the secure storage of the seed phrase you can use the hard drive or even a physical place such as paper (but never the entire phrase on one piece of paper).
From the blog
The latest industry news, interviews, technologies, and resources.
Comprehensive Btcman guide to swing trading crypto strategies, bots, taxes, platforms, and indicators for profiting from medium-term price moves.