Buying cryptocurrency is half the job, the other half is safekeeping it in a crypto wallet. After explaining crypto terminology and how to buy Bitcoin in India this post is dedicated to securing your crypto assets in a hardware wallet a.k.a cold storage wallet. I will explain the steps by taking an example of Ledger Nano S wallet that I personally use and recommend every crypto investor to store cryptocurrency. Let’s get into the details –
- What is a hardware crypto wallet?
- Benefits of a hardware wallet.
- How to use Ledger wallet to transfer cryptocurrency?
- Must know about hardware crypto wallet
What is a hardware crypto wallet?
Just like your usual wallet that stores paper currency, a hardware crypto wallet serves the same purpose efficiently with complete security. A hardware wallet is an inseparable part of the blockchain network that helps transfer, trade, swap, or HODL multiple cryptocurrencies in one place. It gives an extra layer of security from cyber attacks, phishing attacks, and malware attacks. Being equipped with complete safety features hardware wallets are also known as cold storage wallets.
A hardware crypto wallet is the safest way to secure your cryptocurrency
Benefits of a hardware wallet:
If there’s a heaven for cryptocurrency on Earth, it’s in the hardware wallet. Hardware wallets are equipped with bundle of rich features and benefits. The best ones are listed below –
- Many Coins one Wallet
- Inside Trading
As I said before, hardware wallets are an inseparable part of blockchain network which means it works on blockchain technology hence super secure in storing your private keys which makes it impossible for a thief to hack and steal your coins. Moreover, it’s also device-independent.
You don’t have to worry about losing your hardware wallet, just like we have cloud storage on Gmail, the hardware wallet is connected to its respective blockchain network. Even if you lose your wallet, you can still access it from a new device. This step is only possible if you remember your PIN and seed phrase, also known as the recovery phrase. Remember to learn it by heart and you will secure your waller forever.
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Many Coins One Wallet:
The beauty of a hardware wallet is that it can store multiple cryptocurrencies in one wallet. All you need is to download the relevant wallet app for your coin and the job is done. Be it Bitcoin, Dogecoin, Ethereum, or Digibyte. You can literally store all these cryptocurrencies in one place. One wallet to store them all.
No no, It’s not equivalent to insider trading that you may have heard of in the stock market. By the term inside trading, I mean you as an owner of hardware wallet do not need to go back to the exchange to swap or sell your cryptocurrency. All these features are there embedded within your hardware crypto wallet. Before jumping right into it, you need to make sure that you understand the process, don’t let the excitement take over. Learn and use.
One wallet to HODL all cryptocurrencies
How to use hardware wallet to transfer cryptocurrency?
Transferring cryptocurrency from an exchange to a hardware wallet is just like withdrawing cash from an ATM and putting it in your pocket. I will explain this step by giving you an example of Ledger Nano S wallet where I will use an app called Ledger Live to facilitate the process of cryptocurrency transfer. Three things you need before initiating the process are –
- A hardware wallet
- Ledger Live App
Remember crypto is your hard-earned money so please take note of each step that I am going to cover in this video to secure your bags –
Must know about crypto wallet:
Now that you have a better understanding of hardware crypto wallets. There’s something you must know after you buy one and store your cryptocurrency. In order to secure the wallet from attacks and safekeeping your coins, remember to update your wallet with the latest Firmware update.
Always Keep your wallet up to date
These updates are automatically highlighted on the Ledger Live app. You need to download and install the same. Your wallet may not reflect cryptocurrency if you do not update the Firmware for a long period of time. Though it is still safe, updating your wallet is a must to secure your portfolio.
That’s about crypto wallet. In the next post, I will talk about How to choose the right cryptocurrency to invest and Monero XMR Coin. Keep reading, liking and sharing my posts. For more information, checkout my posts on cryptocurrency. Spread the knowledge.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.