💰🔒 How to Choose a Good Service for Storing Cryptocurrencies and not Lose Money?
⠀
📈 Having decided that the most successful strategy for interacting with BTC is its long-term storage, the goal of each investor will be to provide the most reliable and secure storage for their digital assets.
⠀
🔥 Hot Storage of Cryptocurrencies
Without preface, we can say that hot wallets are not suitable for the long-term storage of both Bitcoin and any other cryptocurrencies. Hot wallets are called online wallets, that is, user accounts on any online platform, for example, a cryptocurrency exchange or in other words, those that are connected to the network, to the Internet.
🔸Such wallets are well suited if the user constantly makes any payments using cryptocurrencies or is engaged in trading.
⠀
❄️ Cold Storage of Cryptocurrencies
For those who consider cryptocurrencies as investments, the process of storing digital assets will be comparable only to cold wallets. The absence of the need for an online connection in the case of cold wallets automatically eliminates the threat of hacking by hackers. Cold storage refers to desktop, paper, and hardware wallets.
⚙️But hardware wallets also have certain vulnerabilities, for example, the user may lose the recovery phrase or it may be stolen/destroyed, in which case it will not be possible to restore their funds.
⠀
🔒Cryptocurrency storage
Large investments in cryptocurrencies, and especially in Bitcoin, require a special order of asset storage. Especially if the laws of a particular country in which the investor lives do not allow citizens to purchase cryptocurrencies, and in some cases even prohibit their turnover within the country. For example, today Simba.Storage, a Swiss company that was created to provide custodial storage of Bitcoins, is gaining more and more popularity as a cold storage platform.
When choosing a storage option, you should pay attention to its location, storage technology, specialists who organize its work, and mechanisms for obtaining access to funds in case of emergency situations.
⠀
Read more in the article from BeInCrypto -
https://beincrypto.com/how-to-choose-a-good-service-for-storing-cryptocurrencies-and-not-lose-money/