How do I store cryptocurrency?

You have several different options to store cryptocurrency, including hardware devices, applications, and even a simple piece of paper. Once you know more about each storage method, you can choose the wallet (or wallets) that will keep your crypto safe. Table by author. Another party, such as a crypto exchange, stores your cryptocurrency.

Is cryptocurrency storage safe?

No cryptocurrency storage method is 100% safe, even with the various security measures. Storing your crypto on an exchange is often regarded as the easiest way to keep it, but you can also quickly lose it to hackers. If your exchange gets attacked, you could permanently lose your crypto, even though your passwords and private keys are safe.

Can cryptocurrencies be stored in a digital wallet?

Once bought, cryptocurrencies can be stored in digital wallets. Digital wallets can be “hot” or “cold”. Hot means the wallet is connected to the internet, which makes it easy to transact, but vulnerable to thefts and frauds. Cold storage, on the other hand, is safer but makes it harder to transact.

How does cryptocurrency work?

One way that happens is through a process known as mining. Mining refers to using computers to solve complicated mathematical puzzles in order to receive cryptocurrency. The act of mining requires a lot of computing power, and people who mine receive crypto as a reward for their efforts. Everything about cryptocurrency happens online.