Posts in category: Tips

Everyday there are a massive number of online scams, hacking, fraud, phishing cases happening all around the world. Therefore, if you don’t want to become such a victim, you should consider extra protection to store your cryptocurrencies. Currently on the market, Hot Wallets and Cold Wallets are very popular methods for crypto owners to use in order to keep their public and private keys safe. Both Hot and Cold storage options have their specific pros and cons, and let’s find out what are the differences between them by following this article. And then you can have the better idea about which storage option to choose to protect your financial future.

Hot Wallets

Basically, this type of wallets always needs the Internet connection so users can easily access their accounts to track or make online transactions from any devices. You have to firstly download the software or app to your computer, laptop or mobile devices for using the service and then your personal key will be stored on the provider’s servers. However, since you always need to connect your device to the Internet, your wallet is vulnerable to any possible hacking technical issue, or data missing. Even though Hot Wallet is not a 100% secure method and exposed to many online risks, people still choose using it because of many key advantages like below examples:

• User-friendly interfaces
• Easy to use
• More types of crypto tokens are accepted
• Immediate access to crypto coins
• Free of cost

Cold Wallets

This type of wallets mostly stores the data into the physical devices like hardware wallets, USB flash drives, another offline computer or mobile phone. Since Cold Wallet is completely offline and not connected to the Internet, it is considered the securest way to store your personal private keys. In other words, nobody can have the access to the cryptocurrencies account but the owner. However, such method could be excellent for storage, but nothing is perfect because it has its own disadvantages comparing to the Hot Wallet. Let’s bring out some small weak points:

• Limited options for transactions
• Not all types of crypto tokens are accepted
• Not resistant to the physical damage
• Cost (Could be expensive depending on the type of hardware device)

Which one is better?

There is no correct answer and it all depends on how much you plan to invest on your business because each of them works differently. Cold Wallet could be a good choice for savings and investments due to its offline nature. On the other hand, Hot Wallet is great for quick transactions and payments. Therefore, our best recommendation for you is that you may save most of your funds in a Cold Wallet and keep some in a Hot Wallet for any needed quick transactions in order to fully protect your crypto coins.

Image by 024-657-834 from Pixabay

Although Cold Storage is an amazing method to secure your cryptocurrencies, nothing is perfectly created with no flaws. There are always pros and cons for everything, and let’s have a look on them.

Pros of using Cold Storage:

Security:

The security is guaranteed with the usage of Cold Storage because it’s completely under an offline environment. Since it is not connected to the Internet, hackers, malwares or anyone with bad intention to steal the money are not able to access user’s account.

Easy to use and carry:    

Cold Storage is super convenient because all the available methods are extremely easy to use. For instance: you just simply copy the private keys or scan the QR code from the paper wallet, use the electronic device to carry out the transactions with the hardware wallet, or save the keys on the USB flash drive and that’s all you need to do. In other words, there is no additional complicate security check needed which bothers all the time when you access from the web page.

Low cost or even free:

You don’t need to pay a lot of money to enjoy the function of cold storage. You can just find a simple USB device or even a trusty old PC that is super low cost and more than enough for its usage. Or even better, you can go for paper wallets and it’s totally free of cost.

Cons of using Cold Storage:

Physical damage:

Any possible physical damage can make the cold storage dysfunctional. For example: paper wallets can get burnt, torn or wet and lose the function. USB drive can be lost or stolen. Hardware wallets can be broken and they are not resistant to the water damage either. As a result, the physical damage may still present a significant degree of problem.

Higher cost for major security:

The most effective and securest cold storage option is the hardware wallets. Which has a higher cost and more expensive than the others. On the other hand, cheaper option like USB flash drive or paper wallet for free cost provides lower level of security and the saved codes can be hacked or stolen easier. Therefore, if you are seeking the greater security, you need to pay the bigger price for the gear.   

Photo credit: All Reverse Mortgage on VisualHunt.com / CC BY-NC-SA

If you are the owner of cryptocurrencies, have you ever heard about the function of Cold Storage? Allow us to give you a brief explanation so you can learn more about what Cold Storage is and some popular storage methods.

What is Cold Storage:

It’s commonly used to store users’ digital assets offline in order to prevent the intrusion from any hackers or malware and secure the crypto coins. In other words, cold storage generates and stores your cryptocurrencies’ private keys in an offline environment.

How should you keep the cryptocurrencies:

It is essential that you should keep your crypto coins in an offline manner to secure their safety because online environment is too vulnerable and full of hacking incidents.

What are the popular offline options of cold storage:

• Paper Wallets:

This is a storing method that contains a pair of private and public keys printed on a paper.

• Hardware Wallets:

This is the safest option for keeping the cryptocurrencies. Such method requires an electronic device such as Ledger, KeepKey or Trezor to store your private keys in a secure physical device.

• USB Flash Drive:

It is the easiest way to cold store the crypto coins by exporting and saving the private keys on the USB drive. However, it is also the riskiest option because anybody got your USB drive can has access to your crypto money. Besides, hardware failures are pretty common with USB drives that you should take into the consideration as well.

• Computer, laptop or phone:

There is no need to use a brand-new device to turn it to the offline purpose; in fact, an old used one that is built by a reputable manufacturer is far more than enough. It is recommended to separate the purpose of usage and even keep offline and online devices physically far apart. And have the old one remained completely offline with only the wallet software installed.

Image by WorldSpectrum from Pixabay

As a bookie agent, it’s important for you to know how to not only secure the profit but also protect it. Check out these tips below that are nothing difficult to apply and they can even provide more benefits in addition to ensure the major protection on your privacy and profit effectively.    

Choose the correct Internet browser to use

Do you now that many famous search engines like Google, Yahoo, Baidu or other world recognized ones, secretly collect your data without asking your permission? We would like to recommend you to start using the Onion Tor Web Browser to stay anonymous as much as you can.

The Onion Tor Web Browser directs Internet traffic world-widely through the overlay network to conceal user’s real IP location. This is the perfect tool to protect your privacy and online freedom. Actually, using such Internet browser is the first step of defense that can secure your profit against the hackers who look to steal your information.

Use cryptocurrency

To process the transactions in some famous cryptocurrencies such as Bitcoin, Ethereum, Ripple, Litecoin is the best way to protect the online privacy. The reason is very simple because cryptocurrencies are peer-to-peer directly and there is no middleman involved like credit card company or bank. Therefore, the risk that any hackers who have intention to hijack your transactions minimizes and your privacy remains safely.

Keep your bitcoins in Cold Storage

• What does Cold Storage mean?

Cold Storage for cryptocurrency means keeping the currency such as bitcoins “offline” in order to prevent any unauthorized access.

• Why do you need to consider Cold Storage for your earned bitcoins?

Once you cash out your bitcoins to traditional currency, there is always a chance that somebody other than yourself can discover it. Thence, the safest way to protect your profit is to save it as digital assets and put your bitcoins into cold storage.

Image by Steve Buissinne from Pixabay