How Can You Store Your Cryptocurrencies?
While cryptocurrencies are not regulated in New Zealand, over 15% of the population owns some form of crypto. Securely storing your crypto coins is a crucial aspect of being a digital investor as the web is prone to many cyber risks like hacking. Good crypto wallets can give you safety and peace of mind.
If you wish to purchase cryptocurrencies, you can visit a reliable online crypto exchange new Zealand that lets you exchange your money for any form of cryptocurrency.
Dividing your crypto into smaller parts and keeping them across different wallets instead of all in one place can reduce the chances of losing everything in case of an unwarranted situation like hacking of your crypto account, loss or damage of your device through which you access your crypto investments.
If you store your crypto on exchanges for convenience or liquidity reasons, make sure to spread out your funds between several different crypto exchanges and accounts; this can largely reduce the risk of losing everything at once if something unfortunate happens.
Offline (Cold) Wallet
This is probably the most secure version of a crypto wallet. In this wallet the coins are stored in a physical device that’s not connected to an internet-enabled device, so hackers can’t access your crypto.
However, these devices require initial purchase and a regular backup to ensure your crypto isn’t lost if something happens to the cold wallet or hard drive. These offline wallets cost around $50 in New Zealand.
It’s a software program installed on a computer where users can hold their crypto keys and access their crypto funds from anywhere as long as they have a connection to the internet.
But, it is important to remember that crypto is decentralised, which means there’s no one computer storing your crypto, so if your computer gets hacked or destroyed, you also lose access to your crypto funds. Desktop wallets usually cost $50 – $100.
This version is very similar to desktop wallets, except this type is stored on smartphones and devices with access to the internet. These types of wallets are free apps that crypto holders can download onto their phones.
If you’re not careful, hackers may be able to steal crypto from these mobile wallets just like desktop wallets because crypto keys need an internet connection to access crypto funds. Plus, if anything happens to your phone (like breaking or losing it), then you might lose access to crypto funds.
Work with Reputable Crypto Exchanges in New Zealand
You can also use a cryptocurrency exchange wallet. These crypto wallets are held on crypto exchanges, so crypto holders don’t have to store their keys.
Crypto holders can choose whether or not they want access to crypto funds from the crypto exchanges where they hold them, but this means that you’re putting your trust into the hands of a third party.
How Can You Keep Your Cryptocurrency Safe?
There are three main ways to make sure your cryptocurrencies stay secure:
- Use long and unique passwords for every single one of your crypto accounts.
- Always enable two-factor authentication (2FA), which requires you to enter another passcode in addition to your password when logging into crypto accounts.
- Use a crypto wallet that lets you set up an extra layer of security, like providing a photo for account verification.
Remember, crypto security is all about being proactive, cautious, and extra vigilant to keep crypto funds protected. Crypto holders can choose wallets based on their preferences because just like people have different personalities/preferences, crypto wallets come in all shapes and sizes.