The countries which have a high population of law and middle income people are showing the most growth in the currency of crypto as well as bitcoin. Most people are using it for the sake of investing so they can preserve their savings and get lots of profit after some time.
People who are new to the world of crypto have lots of products and services which is making the process completely easier. With the fast adoption of cryptocurrency there are also risks of theft and scams. According to the annual analysis almost 3,800,000,000 of crypto has been stolen from the users in the year of 2022.
The theft rate decreased in 2023. It came down to $1.7 billion. But many people were still trying to hack the cryptocurrency. So the matter of storing your currency into a safe spot is really important. You need to choose the method which is hundred percent guaranteed. Let’s take a look at cryptocurrency storages and its types.
Storage types
There are two categories in which you can store your cryptocurrency.
● Custodial
● Non-custodial
Custodial wallet
Usually a third-party manages your custodial wallet. Exchanges such as Coinbase are going to manage this. The custodian is going to store the private keys in your wallet and keep them safe. There is 100% guarantee for their safety. Sometimes they are also providing you guarantee and insurance on a certain amount.
Ever since the use of custodial wallets the hackers have been targeting them. Even though the exchanges are using lots of measures to stop these attacks, the attacks are still taking place. You can make custodial wallets either into the hot or cold category.
Non-custodial wallets
These are the wallets that are solely under your protection. Any kind of party we cannot use this wallet. You can make these in a hot or cold wallet.
Hot wallets
Software that is used to store your keys with the help of the Internet connection are called “wallets. Because of their connection with the Internet these wallets are vulnerable. Private keys are going to help you with your access to crypto. A hot wallet is used by most of the users for the transactions of bitcoin. These wallets can be easily hacked by the hackers.
Cold wallets
Also known as cold storage this wallet does not need the Internet for the transactions. That’s why this is less risky than the hot wallet. These wallets are more like hardware.
Age option that is available to you is a good option however you need to choose only one for your storage of cryptocurrency. The only safe method is the one which you use by yourself to store the cryptocurrency.
