Cryptocurrency can be stored as a long-term investment, used to pay for goods, services, trade on exchanges, or through brokers.
Therefore, when choosing a wallet, you need to keep in mind why you need digital coins and how they will be used. In this post, we will cover the main scenarios and will help you find a solution that will work best for you.
Scenario #1 — Safe Storage
If your goal is to accumulate cryptocurrency and wait for it to rise in value, then you should consider cold storage. For this purpose, you can create the Trastra wallet, link your trastra.com crypto debit card to it and use the plastic to cash out of cryptocurrencies when needed. For cold storage, you can use specialized hardware or “home-made” solutions. Both options have one thing in common: it is almost impossible to get unauthorized access to your cryptocurrencies.
Crypto Hardware Wallets
The most reliable are specialized devices as they are:
- Protected from viruses;
- Easy to connect to different PCs;
- Reliable (you can keep it offline until you need to transfer or accept coins making them less prone to online hacking).
A hardware crypto wallet can be purchased for $100-200. It is suitable for the long-term storage of cryptocurrency.
“Home-Made” Storage Solutions
You can turn multiple devices and gadgets into a hardware wallet, for example,
- Personal computer, laptop;
- Flash drive.
To do this, you need to install specialized software on the piece of equipment you are going to use. Self-made crypto storage assets can host tens of gigabytes. For example, to work with Bitcoin, it is necessary to store a huge amount of data chains, which are updated during transactions.
Paper Crypto Wallets
These are disposable (printed on paper) storage facilities. They can be locked in a safe or carried with you. The solution guarantees complete protection against hacking over the Internet. You can easily make a paper crypto wallet on a specialized website and print on a printer. When printing your crypto assets, you will get a piece of paper containing a unique QR code. To use the money, the QR code needs to be scanned and the private secret code is to be entered. In case you do not have experience in using paper crypto wallets, you can always print the file with instructions and stick to them.
Scenario #2 — Active Use, Trading
If you need access to the asset from different devices, then you should consider hot storage. The public key from it is stored by the manufacturer, and the private key is either there or on the user’s device. The first option is more convenient; the second is more reliable.
Hot wallets are needed to pay for goods, services, exchange cryptocurrencies. You can also use them to sell or buy cryptocurrencies through special exchangers. As a rule, people store small amounts of cryptocurrency there. Thus, if the manufacturer’s server or the user’s device is hacked, they won’t lose a lot of money.
Choosing a Crypto Wallet for Speculative Trading
Some people open accounts on exchanges where they store coins. But there are other options as well. All of them come with a secure vault with voice authentication, powerful encryption, and a rich feature set. Such systems can be used for speculative trading, exchange of cryptocurrencies, buying and selling fiat money with withdrawal to bank cards, or EPS. These specialized wallets are suitable for storing the amount that you plan to use for trading.