Today, in this article, we learned about the safety of crypto, whether the cryptocurrency we buy is safe in our crypto exchange wallet or not. If you check the crypto exchange platform wallet properly so that no one steals your coins.
So, let’s first know About Cold wallet and Hot Wallet —
Now there are two types of crypto wallets, Hot wallet or cold wallet depending on how they operate:
Hot Wallet —
Hot wallets are wallets that are connected to the internet. For example, when you create your account on any platform i.e., a wallet like Coinbase, Binance or Metamask and send your funds to that platform wallet, then at that time you deposit your funds in your hot wallet. These wallets are very easy to set up and you can access them with a single click. If you are interested in bitcoin trading check tether and bitcoin and what you need to know.
Cold Wallet —
Now if we talk about a cold wallet, then there is no internet connection in the Cold wallet. Instead, there is a physical medium that stores the keys offline. It is because of this feature that it saves the online user thread and makes cold wallets more secure in storing cryptocurrencies. This process is also called cold storage, and it is very useful for long term investment and holders.
It now stores a very small percentage of the coins of usage associated with platforms such as Coinbase, Binance, and Metamask in its hot wallet to keep users’ funds safe. Now the rest of the fund is kept safe in the cold wallet i.e. in cold storage. There are many platforms like Binance, if using Binance as an organization then there should be no security breach in its acid secure and no cyber attack can harm any user’s acid.
So let’s talk about Binance SAFU — that is, about Binance Secure Acid Fund, which is an emergency insurance fund. On 3rd July 2018, Binance launched it for its users. In this, up to 10% of the trading fee is allocated by the balance to secure their users and their funds.
It works like wallet insurance in a way. These funds are stored in a separate cold wallet. Let us now talk about what majors you can take.
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To keep your cryptocurrency safe —
First comes the use of cold wallets, we have already talked about the cold wallet, we have learned how it works and how it is a secure option for your cryptocurrency.
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Secure your device —
You have to pay close attention to whatever device you are using for crypto trading ie your mobile, laptop, iPad or any device. It should have an anti-virus up to date and at the same time, it should also have a strong firewall. So that no hacker can enter your system even if they want.
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Use of multiple wallets —
You can keep your cryptocurrency in different wallets. Don’t lose too much if you keep money in different wallets or if your crypto is accidentally stolen.
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Use of Secure Internet —
Whenever you are trading in cryptocurrencies or doing any crypto transaction, please make sure that your internet connection is secure. Please avoid using public Wi-Fi networks.
So now let’s talk about Security/passwords —
Keep in mind that your password should be strong so that no one can easily access your crypto. And along with that, you have to keep changing your password in a short time. Even if someone accidentally got a hint of your password, then he could never crack it. Along with this, All two-factor authentication and multi-factor authentication in which you can log in not only with a password but only after answering OTP or your security question.
