Safety is the name of the game, especially when it comes to cryptocurrency. Keeping your tokens safe is a high priority for any crypto enthusiast even to the point where the topic of safety has become one of the most popular memes in the crypto space. #SAFU has become one of the most popular crypto memes, coined by Binance CEO Changpeng Zhao in a typo when he attempted to type the word “Safe”.
Soon you’ll be able to get your hands on some CUDOS tokens, but what are the best ways for you to keep them safe/#safu? Luckily we’ve put together a few methods for you below check them out!
Hot and Cold Wallet
Whether a crypto wallet is defined as “Hot” or “Cold” is determined by its ability to connect to the internet. Hot wallets the ability to connect to the internet and thus are less secure as they are more vulnerable to hackers, although they tend to be more user friendly. Cold wallets, on the other hand, are stored offline and don’t require an internet connection. This generally means they are more secure and less at risk from malicious attacks. Hot wallets are more likely to be used for daily transactions and cold wallets for more long-term holdings. Hot wallets are usually easy to set up, and the funds are quickly accessible. Hot wallets are often used by traders as they are more convenient for regular use. Cold wallets are much more hack resistant, and which makes storage more suitable for HODLers.
Hardware Wallets
Hardware wallets are hardware devices that individually handle public addresses and keys. They usually look like a USB with an OLED screen and side buttons. It doesn’t need a battery and can be connected to PC and accessed via native desktop apps. Hardware wallets have received a mixed response. They are more secure than hot wallets and far more user friendly than paper wallets but still have a gap to fill when it comes to ease-of-use. Hardware wallets are notoriously difficult for beginners to use but this seems to be something the community has begun to address. The most popular hardware wallets are Ledger Nano S and Trezor.
Paper Wallet
A paper wallet is a crypto wallet in the form of a physically printed sheet of paper with a QR code on it. Some wallets allow downloading the code to generate new addresses offline. They are generally not prone to hacks, but there are a number of drawbacks when using paper wallets. One major drawback is not being able to send partial funds. Paper wallets used to be a very popular cold storage option but decreased in popularity after hardware wallets came onto the scene.
Desktop Wallets
Desktop wallets come in the form of software available for most popular operating systems and are growing in popularity with time. Desktop wallets are regarded as hot wallets as they require an internet connection to function which poses fundamental security risks. Desktop wallets tend to be easy to use, provide privacy, anonymity, and involve no third party. Popular desktop wallets are Exodus and Atomic Wallet.
Web Wallets
As the name suggests, these wallets are accessed via web browsers and are often in the form of browser extensions. Some web wallets hold their private keys online and are prone to DDOS attacks. They can be hosted or non-hosted. Non-hosted is preferred as funds are always in the users' control. They are generally seen as the least secure type of crypto wallet. They are ideal for small investments and allow quick transactions. Examples of these are MetaMask or any wallet hosted on an online exchange.
There are several options when it comes to crypto wallets, and they all come with their own risks, please take care when deciding which option is the best for you.
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