Securing our Crypto Holdings

Cryptocurrency is something that is operated completely on a digital format and blockchain is the technology that is been used. These tokens carry a monetary value that we can convert using any exchange and this could be centralised or decentralized. In a way every token is a digital asset carrying some monetary value as per the market hence security is important. We often hear about the news of exploitation on different chains and even for the crypto exchanges. It happens despite using the highly advanced security protocol by the exchanges because hackers are also advanced.

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If an exchange can be hacked then it is hard to say that our funds are safe in the exchange wallet so we need to figure out the best option where our crypto holding can be kept safely. Two ways can be followed for funds safety.

• Hardware Wallet
  
  
  • Non Custodial wallet

Hardware wallet is the best solution available as of now. I have never come across any news in which the funds are stolen from the hardware wallet but there can be one issue of losing access to the key. It is the safest wallet for the cryptocurrency if we can keep the key safe with us. If we lose the access to the key then our funds are gone because there is no other way to recover it. In Crypto, we often call not your key, not your crypto and the same is applicable in the case of hardware wallet. Losing access to the key is the same as losing access to the fund and there is no way to recover it without a key.

Non-custodian wallets are also considered as a safe option however these wallets have contact with the Internet. There have been instances when people lost their crypto but still as compared to the exchange wallet it is a better option. Meta mask is the well-known name in such type of wallet but there have been multiple instances reported in which people lost their crypto. We need to be careful while connecting the wallet on any website because things can be risky if proper steps are not followed or if something is fishy on the bridge.

In this post, I have tried explaining about two common methods to secure our crypto and I'll be talking about this topic in future posts. The additional information will be provided in later posts and hope this will help you to understand how you can safeguard your crypto holdings.

Thanks.