When choosing a crypto wallet, you need to realize that the more convenient it is to use, the less reliable it is in terms of safety. It’s due to the fact that more convenient crypto wallets provide easy access to the private key, which is also true for hackers.
It’s up to every crypto user to decide which crypto wallet he’s going to make use of. A wallet with quick registration and easy access to the balance will be convenient for those who plan to frequently carry out transactions for small amounts. If we are talking about the storage of large savings, then a more rational option would be the use of crypto wallets of increased reliability, although less convenient to use.
Types of crypto wallets
In fact, any crypto wallet is just a combination of two digital codes. However, the developers took care of their users and came up with several solutions for the convenient use of those codes.
Every crypto wallet, including Ethereum Classic wallet, has its own security level that mostly depends on its type and service provider. In general, all crypto wallets can be divided into two main groups:
- “Hot” storage: Here private keys are stored with an Internet connection, which provides easier access, but makes it more vulnerable to hackers;
- “Cold” storage: In this case, private keys are stored without access to the network. Transactions require advance preparation, but you can be sure that hackers won’t reach your private key from the Internet.
Every group has several varieties of crypto wallets that have their own pros and cons.
Stick with a cold wallet and you won’t lose
Cold wallets boast the highest degree of security. This category includes hardware wallets that store private keys without access to the Internet.
A hardware wallet can be defined as a separate physical device designed exclusively for the safe storage of cryptocurrency. In such a wallet, the private key is stored in the device’s memory and never leaves it.
Additionally, hardware wallets are protected with a password and a secret SEED phrase. Using the set PIN code, the wallet owner makes a quick connection, and the SEED phrase will be required for renewed access and additional protection in case of loss of the wallet.
To complete a transaction, the hardware wallet is connected to the computer via a USB cable. At this point, working with a private key is carried out remotely in the protective environment of the hardware device. Even if the PC is infected with a virus, it does not affect the storage security, since it is impossible to remove the private key from the device.
Often, this type of crypto wallet is utilized by exchanges as well as large investors to store large savings. Their only downside is that they’re paid.
The most popular hardware wallets include:
- Ledger Nano S;