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How can I store crypto safely?

Have you already taken a leap of faith in the world of cryptocurrencies (crypto)? From the well-known Bitcoin and Etherium to underdogs such as Dogecoin and Apecoin, there is a cryptocurrency for every letter of the alphabet.

Once you have taken the step to purchase crypto, you need to store the crypto somewhere. Of course, you want to prevent a stranger from getting away with your crypto or your crypto being untraceable because you have not stored it properly. But how do you store crypto? And how can you store crypto safely? That is exactly what we help you with!

What are cryptocurrencies?

When you have purchased crypto you will receive crypto coins. You cannot hear these coins ringing in your wallet because cryptocurrencies are a form of digital money.

You can compare a cryptocurrency with a password. Cryptocurrencies are encrypted codes that consist of a unique series of numbers and digits.

Because you cannot physically hold crypto coins, it’s impossible to keep stacks of shiny coins under lock and key in a safe. We will go into more detail about how you can store crypto safely.

Blockchain technology

The development of blockchain technology has sparked the rise of cryptocurrencies. After the very first cryptocurrency, Bitcoin, appeared on the market in 2009, large numbers of cryptocurrencies are now in circulation.

A blockchain is a database consisting of a chain of blocks in which approved transactions are stored. In the case of cryptocurrencies, we describe a transaction as a payment with a digital currency. When a new transaction is made, a new block is added to the blockchain.

A blockchain is run by a network of computers. Together, these computers keep the accounts of a specific cryptocurrency, as it were. If a computer within the blockchain is shut down, there is no need to panic. Every computer within the blockchain contains a copy of the blockchain, so information is not lost if a computer is turned off.

The special thing about a blockchain is that all data is spread over several computers. With a classic database, you see that all data is stored at one central point.

By using blockchain technology, financial institutions, such as banks, are no longer needed to enter into a transaction. This makes the process much more efficient and lowers costs. Transactions are also completed faster by using blockchain technology. Especially in the case of international transactions.

This way you can store crypto safely

You may be wondering how it is possible to keep digital currency safe. There are several ways in which you can store crypto safely. Take a good look at these different ways, so that you can be sure that you store your crypto in a way that suits you well.

Store crypto safely in a crypto wallet

You can’t keep your crypto in a physical wallet, but we have good news! There are digital crypto wallets, also called crypto wallets, that you can purchase if you want to store crypto safely.

There are two types of crypto wallets in which you can store crypto safely. First of all, you can use a cold wallet to store your crypto. You can also use a hot wallet.

Cold wallet
You can compare a cold wallet with a USB stick. It is therefore possible to physically hold a cold wallet. When you store your crypto in a cold wallet, your crypto coins are stored offline.

A cold wallet is protected with a password and a PIN code. This pin code will be sent to you digitally after you have entered your password. Only when you have completed both steps will you gain access to your cold wallet.

The cold wallet must always be present if you want to complete a transaction. Without the physical wallet, you will not have access to your cryptos.

Hot wallet
You can also store crypto safely with a hot wallet. Unlike a cold wallet, the hot wallet is connected to the internet and you cannot physically hold the wallet.

There are different types of hot wallets. First of all, you have the mobile and the desktop wallet. For these two hot wallets, it is required to download an app on your computer, or phone on a tablet. In addition, you have a web-based wallet, where you can view your account by logging in to the website.

There are different types of hot wallets. First of all, you have the mobile and the desktop wallet. For these two hot wallets, it is required to download an app on your computer, or phone on a tablet. In addition, you have a web-based wallet, where you can view your account by logging in to the website.

Although a cold wallet cannot become heavier as you add more crypto coins to the wallet, it can still be annoying to always have the wallet at hand. The advantage of the hot wallet is that you can access it anytime and anywhere via your laptop, phone, or tablet.

The disadvantage of a hot wallet is that you are dependent on the security measures of the provider of your hot wallet. If these security measures are not of a high level, there is a higher chance that your crypto coins will be stolen.

Because a hot wallet is connected to the internet, there is a greater risk that cyber criminals are watching your internet traffic. While these cyber criminals watch from their desk chairs what you are doing on the internet, they see that you open your hot wallet. That’s when the criminals spring into action and strike at the right time to steal your crypto coins. By using a VPN you can protect yourself against this.

Use a VPN

Crypto transactions, as discussed earlier, are stored in a blockchain. The blockchain is visible to everyone, including cybercriminals. As soon as your transaction is in the blockchain, your identity is also visible to all other crypto owners within the blockchain. This allows cybercriminals to pick out specific targets.

By using a VPN when completing transactions, your privacy is guaranteed. A VPN is therefore a good choice if you want to protect your crypto.

VPN is an abbreviation for a virtual private network. A VPN is a secure tunnel between you and the internet. As soon as you use the VPN, all your internet traffic is sent through this tunnel. As a result, it is no longer possible for outsiders to find out your identity and monitor your internet traffic.

Set up multi-factor authentication to protect crypto

Finally, you can protect your crypto by setting up multi-factor authentication (MFA). When you use MFA, you add an extra step to the login process. In addition to entering your regular login details, you enter a code that you will receive via text message or e-mail, for example.

You have seen MFA before during the login process for a cold wallet, but you can also set up MFA for a hot wallet. This way you can store crypto safely with peace of mind.

Protect crypto with GOOSE VPN

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By connecting to the VPN connections of GOOSE VPN, you prevent cybercriminals from discovering your identity and getting away with your crypto coins.

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