More people than ever continue to look for new ways to invest their hard-earned money, and one of the hottest new investment trends these days is buying, holding, and selling various legitimate cryptocurrencies.
Whether you are considering investing in crypto currencies for the first time or are preparing to explore a crypto staking platform, such as Bitcoin or Ethereum, you must understand why storing your cryptocurrency securely using hardware, software, and paper wallets is important.
With that said, here are three useful tips for keeping your cryptocurrency safe from the threat of cyberattacks.
What are the main types of wallets for storing cryptocurrency?
There are many ways you can store your cryptocurrency securely and protect it from cybercriminals. The safest way to look after any cryptocurrency that you invest in is to store it in one or more of the following three wallets:
- Hardware wallet
- Software wallet
- Platform/vault wallet
These three wallets can also be further categorized as hot or cold wallets based on their internet connectivity. For example, desktop wallets, mobile wallets, and web wallets are considered ‘hot wallets,’ whereas hardware wallets are considered ‘cold wallets, ’ where no connection to the internet is needed.
These wallets also fall into the category of custodial and noncustodial wallets. Noncustodial wallets, for example, are wallets in which the individual is responsible for securing their keys, and custodial wallets (aka online wallets or web wallets) are hosted by a trusted third party that stores your keys for you.
Having one or more different types of wallets is the safest way to keep your cryptocurrency safe.
Instead of using a crypto wallet, your cryptocurrency can be stored on the crypto trading platform that you purchased it from, using a platform/vault wallet.
Three tips for safely storing your cryptocurrency
Crypto wallets keep your private keys (passwords that give you access to your cryptocurrencies) safe, allowing you to send or receive any cryptocurrencies you own.
Apart from storing your cryptocurrency in a crypto wallet, here are three other useful tips that can enhance your cryptocurrency protection:
- Always switch on 2FA (Two-Factor Authentication) and other secure login features to prevent unauthorized access to your crypto wallets or crypto trading platform accounts, and use things like one-time passcodes to enhance protection.
- Always create a strong password that is at least 12 to 16 characters long, and make sure that it contains a mixture of random numbers, letters, and symbols.
- Always use a secure network and avoid public Wi-Fi, especially when accessing your crypto wallets.
If you can remember these three tips, it will give your cryptocurrency more protection and make your accounts far less vulnerable and open to various cyber attacks.
How else can I enhance my cryptocurrency storage protection?
Consider using up-to-date anti-virus protection on your preferred devices and, as often as possible, use a VPN (Virtual Private Network) to mask your IP address, encrypt your data, protect your online privacy, and bolster your online security.
Finally, try to avoid scams, which is much easier said than done, and remember to store backups of your wallets in multiple secure locations. Make sure your apps, programs and software are frequently updated to the latest version, and only use reputable crypto exchanges/platforms to purchase crypto.
Final thoughts
If you are looking to invest in cryptocurrency in 2025, one of your safest options is to see what the experts have to say on the official Best Wallet review site.
They have a database containing the carefully handpicked names of the safest crypto exchanges in 2025 and provide plenty of useful information about how you can buy cryptocurrencies and store them securely.
