To become part of the crypto-industry, the user must own certain cryptocurrency assets. However, Bitcoin or Ethereum cannot be carried in your pocket like paper bills, so one of the first problems of new crypto owners is choosing where to store their coins.
We will tell you what storage methods exist and how best to protect your savings from intruders.
- What is cryptocurrency storage?
- Where to store cryptocurrency: hot storage Online crypto wallets
- Desktop crypto wallets
- Mobile crypto wallets
- Paper wallets
- Cold storage
Wallets for storing cryptocurrency, which one to choose
- Cold wallets (Offline)
- Hot Wallets (Online)
- Software wallets (Desktop)
- What is Staking Cryptocurrency
- How much can you earn
- Staking on the Binance exchange
- DeFi on Binance Exchange
- PirateCash service
- MinePlex bot in telegram
- Earning money on microcredit
- Okex - more than 70 coins with POS mining
- Klever.io: earn money on your phone
- Staking - on your own wallet
- Pros and cons of POS mining
- In conclusion about Staking
I think we need to start this article with what options for storing cryptocurrency exist and what we want to get from our savings . First of all, if you store cryptocurrency in large quantities and are afraid of losing it, then to save it you need an offline wallet, I already wrote about this on my website - this is the LedgerNano and Trezor wallet (reviews of them are just below the link). If we want quick access to tools and ease of use, we use services.
The second important point is the diversification of our funds . You shouldn’t store everything in one currency, such as bitcoins; it’s best to divide your funds into different altcoins. Naturally, we leave some lion's share of our funds in cryptocurrency, which we want to save. But in any case, we divide the second part into different coins.
And the third important point is whether we want our money (which we keep) to multiply and bring us passive income . Types of cryptocurrency wallets:
- Desktop
- Mobile
- Hardware
- Paper bills
- On services
These wallets are divided basically into two types: cold storage and hot.
What is cold storage (offline)
Cold storage of cryptocurrency is a fairly reliable method; it consists in the fact that the wallet does not have access to the Internet. Accordingly, it is less vulnerable and suitable for long-term storage of large amounts. Suitable for people who plan to put their savings for a long time and not touch them again. Access to your wallet is only possible if you have a key, which looks like a specially encoded file. There is no simple password entry here, here access is provided only using this file. You can read more about the system of such work on the website in the article: Ledger Nano wallet
What is hot storage or online storage
Cryptocurrency hot wallets - they are always connected to the network and share access to the blockchain. More details about blockchain in the article “What is a cryptocurrency like review“. This category includes various online services: online wallets, crypto exchanges, services, and so on.
The advantages of this method are speed of access and ease of use. You can use your wallet at any time: send, transfer or convert your assets. Naturally, there is a drawback - it is lower security, and there is also a point that sometimes the exchange is hacked. In this case, you may lose your accumulated funds, but again, many exchanges have their own insurance systems and most often they try to compensate their users for losses.
What is a software wallet (Desktop)
Software wallets include mobile applications and wallets installed on your computer . They are also divided into two options:
When the application completely downloads the full volume of the blockchain, this can take 2-3 hundred gigabytes. In the future, during any operation, the program simply needs to update the chain. Such wallets have access like cold wallets, only with a private key (that is, using a program file).
There are simpler wallets that do not download the blockchain; they constantly connect online and access the network whenever you take any action. To quickly interact with cryptocurrency, the easiest way is to use any exchanges such as binance or exmo - the site has a detailed review of “detailed review of binance” and “detailed review of the exmo exchange“.
Such wallets easily allow you to manage your deposits: withdraw funds, deposit cryptocurrency and, of course, exchange it with each other. For small volumes, this is perhaps the best option.
PC Wallets
These are computer programs that are installed on the Windows, Linux or Mac OS operating system.
They usually support two or more currencies.
Here are the best installable wallets at the moment:
Exodus. Supports all operating systems listed above and 15 currencies. The interface is extremely simple. The procedure for connecting and replenishing wallets is not difficult to understand. In principle, everything is the same as on the best exchanges, only simpler. Official website – exodus.io.
Fun fact: "Exodus" literally means "Exodus". Many people know that this is the name of the second book in the Bible.
Rice. 1. Exodus
Bitcoin Knots . A very famous wallet that has a high level of security. True, it only allows you to store bitcoins. You cannot use any other currencies. But you won't find anything better for BTC. At the top of the program window there are tabs for main actions. For example, to send funds to someone, you need to click “Send”. Official website – BitcoinKnots.org.
Rice. 2. Bitcoin Knots
BitCoin Portable. Another Bitcoin wallet. In fact, it was one of the first stationary wallets of this type. Among the developers is the mythical Satoshi Nakamoto. Management is made as convenient and simple as possible. You can download it via torrent.
Rice.
3. BitCoin Portable go
Cryptocurrency staking (Staking, PoS mining, landing, DeFi, MasterNodes)
Now let's move on to the most interesting thing - storing cryptocurrency with the opportunity to make a profit. These concepts define the storage of cryptocurrency and the accrual of some interest on it. Initially, some altcoins carry a Proof-of-Stake system, namely a charge for storing coins in a wallet. This functionality is written into their program code, but now it has also become popular for many services to charge interest for storing cryptocurrency and for coins that do not have such an option initially.
There are various options for earning money by storing cryptocurrency: Staking, PoS mining, lending, DeFi, MasterNodes. We will look at them all in this article. So let's talk about where to store cryptocurrency so that interest accrues on it. What methods do I use myself and which ones can I recommend?
Haro
Another very popular wallet is called Haro.
When considering currency storage options, you should definitely consider this option.
It is very popular among beginners and advanced miners and traders.
It is important that there are Haro mobile applications for Android and iOS. You will have access to them immediately after registering as a new user.
And the interface of the computer version is also very convenient. You can carry out transactions in any convenient place where there is Internet, and from any device.
An interesting feature is the ability to order a debit plastic card. It can be used for online purchases.
But it is possible to withdraw cash from it. True, for this you will have to find a special office of an organization that can help with this.
There are no transaction fees at all. The cryptocurrency rate is local and in most cases turns out to be much more profitable than on exchanges. The wallet is available at xapo.com.
Rice. 16. Haro
It's worth noting that Haro provides the option to use Vault cold storage. It is worth talking about what this is in more detail.
go
How much can you earn by storing cryptocurrency?
First of all, I want to tell you right away that you shouldn’t store huge amounts in one place, it’s better to distribute them across different services and in different currencies. It is also necessary to look at the services that seem more reliable to you.
Use two-factor authentication in all services so that all transactions are confirmed via SMS or using the Authenticator app. or using notifications by email or PIN codes (if any). Any action with your deposit must require confirmation so that you cannot transfer your funds in one click simply by guessing the password to your account.
Staking is essentially a deposit on which you receive interest. Banks also work, but there are differences here; cryptocurrency staking has a higher percentage and the more funds you hold, the higher the profitability. Different systems have their own conditions and limitations: the amount of profit, how much you can earn, depending on the exchange rate of the coin, the volume that you store on the service and, of course, the duration. There are different percentages for different coins, but on average it ranges from 6% per annum to 30+ percent.
Paper wallet
This concept means that you will have paper with a QR code, which will give access to your wallet and its management.
For different currencies there are different ways to create such paper.
Let's look at this using walletgenerator.net as an example.
To create a paper wallet, do this:
- Go to the website and download the archive, which is stored on Github. Just click on this inscription.
Rice. 10. Link to the archive of the website walletgenerator.net
- Turn off the Internet. Open the archive and run the index.html file from it. The same site will open. Move the mouse until the wallet is created. You can also enter random characters in the corresponding field. Do this until you see two QR codes.
Rice. 11. Two QR codes
- Click the Print button in the top right corner. The codes will be printed. Stash them in a safe place.
go
Staking cryptocurrency on the Binance exchange
How to make money by staking on the Binance exchange , I wrote about this method in detail in the article. Binance allows you to send quite a few cryptocurrency options for storage on which interest begins to accrue. There are two options here: quick storage and long-term storage - the interest rates are different. To choose a more profitable course, you can track directions on the website.
Register using this link on the Binance exchange and receive a 10% refund on trading commissions
Regular staking allows you to automatically send coins for storage, just select the “subscribe” option for the desired cryptocurrencies and as soon as they are on your balance sheet, they immediately go into storage. The percentage here is from 0.2%.
Landing - needs to be monitored, new coins are constantly appearing and they can be sent for a certain period (from 7 days) and earn a higher percentage (up to 40%). Go to the “earn” tab and track landing pages.
Online wallets
In other words, these are cryptocurrency exchanges that have wallets for each currency. This is a very convenient way to store funds, first of all, because you can play on the course and earn even more.
Here is a list of three popular exchanges today:
- binance.com. Although the exchange was created in 2022, it is already in the TOP 5 in terms of daily trading turnover. This is not at all surprising, since the commission for the transaction is only 0.1%, and you can store 87 types of coins. Today it is simply amazing!
Rice. 7.binance.com
- hit-btc.com. This is already a real veteran of cryptocurrency trading. HitBTC has been around since 2013. One of the advantages is very fast registration - for this you only need to provide an email address and password. True, you will have to be verified to start trading, but this also happens quickly.
Rice. 8. HitBTC
- btc-trade.com.ua. The best exchange for beginners. If you have never dealt with cryptocurrencies, feel free to register here. This is the first Ukrainian exchange that supports all the most popular currencies.
Rice.
9. BTC TRADE UA go
DeFi coin storage on Binance
DeFi (Decentralized Finance) stands for decentralized finance . This product provides simple and convenient access to DeFi. You don't need to manage private keys, acquire resources, make trades, or perform other complex tasks that DeFi staking typically requires. By simply clicking on the “Add Assets” button, you will open yourself to the opportunity to participate in DeFi staking projects and earn high income in an easy and secure way.
Previously, we looked at the usual storage of coins on binance, that is, you deposit coins and click earn. In principle, all actions are automatic - the coins are simply stored on the binance exchange and bring you a certain profitability, it varies daily (the average profitability there ranges from one and a half percent and for some cryptocurrencies up to 30+).
There is another option: DeFi staking works through smart contracts with higher profitability; of course, the entry threshold is also higher. In any case, you simply invest your coins and start earning money.
What are public and private keys for?
A key pair consists of two one-way linked cryptographic codes (basically long random numbers).
Below is an example of a Bitcoin public key (address) in different formats :
- WIF format: 1Hdhqgs1dnuwHGUhiWCGoUAC7tED3BYqCB
- WIFC compressed format: 18XmGjXTFXMTisEMoqQuBk6hwRAKHuUSyV
- HEX format: 04CB6110EC3B109B1F723ACBCC1C5E27902D9F7F31B5E18A256A037BE0990EA880C85670539C64BF27E9B02E7F1C4C3917592620A905CC30F9125333EC79B2 5AE9
- B64 format: 03CB6110EC3B109B1F723ACBCC1C5E27902D9F7F31B5E18A256A037BE0990EA880
open Bitcoin key in different encoding formats
An open key is also called public. It is available to everyone and can be shared freely.
And the private key must remain confidential and known only to the owner. Because the key pair is mathematically related, anything encrypted with the public key can only be decrypted with the corresponding private key.
Example of private Bitcoin keys in different encodings:
- WIF: 5Jgw9jEUiRiF6PTJ5XqjuL2CWMs5ZZo62KfFBsZyFdeEvPdthie
- WIFC: L15G1XQVKr53Cn74P188MxxHnb638jkRAqMoczCXHajNSX6M1his
- HEX: 73007E12C5FBC0F98C26227D55AE99F84E2696B448425C16969DF5AE120F1C85
- BASE64: cwB+EsX7wPmMJiJ9Va6Z+E4mlrRIQlwWlp31rhIPHIU=
private bitcoin keys in different encodings
For example, if Bill wants to send bitcoins to Anna and wants to be sure that only Anna can receive them, he will encrypt the data with Anna's public key (which acts as an address). Only Anna has access to the corresponding private key, which can decrypt the message and turn it into money on her balance sheet.
In this way, cryptographic keys ensure transaction confidentiality. They can also be used to create digital signatures.
Earning service PirateCash.Net
An excellent service that I recently wrote about. PirateCash - there is also the opportunity to store cryptocurrency , but only in a single coin - PIRATE. The service is a telegram bot, inside it you can exchange PIRATE for DOGE, BTC, COSA and also top up using these methods. You can use all available cryptocurrencies for exchange and withdrawal from PirateCash.
Register with PirateCash and start earning
The PirateCash.net service has a faucet with free coins (to start without investment). There is a very good affiliate program here. Interest for storing PIRATE is accrued hourly; as soon as you have deposited any amount and transferred it to PIRATE altcoins, then after 8 hours you start accruing. No additional actions are required after depositing PIRATE coins, everything works automatically. The best thing is that every hour, the balance of your deposit increases and the percentage on the number of coins also grows.
PirateCash also allows you to use a very cool thing - these are master nodes . There is no need to set up complex processes, just deposit an amount of 10,000 PIRATE and click “start master node”. By the way, you can read what it is and how it is used at the link above. The point is that if you have at least 10,000 pirates, you have the opportunity for higher income.
Trezor
The second most popular manufacturer of hardware wallets is the Czech company Trezor; again, you should only buy them on the official website or from official resellers. The main difference from Ledger wallets is that the code for Trezor wallet models is open and posted on GitHub and anyone can view it. make sure it is safe and even find errors and advise manufacturers.
There are also two models here, and this time the differences are a little more significant between them, for example, the code of the more expensive Trezor Model T was written later and is better prepared to expand the list of coins and therefore they appear on it faster and there are now more of them.
There is also a difference between the models in the security system, so I don’t really like that many security operations, such as entering a PIN code, entering and checking a passphrase, can be performed on a computer and most often do so. Of course, the security system there is thought out at a high level, but with some options for checking the code phrase and if you have an infected computer, there is a chance that your seed phrase will be compromised. The probability is, of course, minimal and mostly purely theoretical, but still.
Therefore, if you choose between models here, I would choose Trezor Model T, it is more expensive, but more convenient and functional, and most of the cryptocurrencies can be stored directly through the Trezor Wallet system without additional integrations, while with Trezor One for the same Ripple there is still an option no cold storage.
Therefore, in this case, the choice should be made between Trezor Model T and Ledger Nano S, and these are different price categories, and I like the design of the Ledger Nano S more, and in terms of functionality, especially after the recent release of Ledger Live, it is much more interesting.
As for getting started and setting up, there is also a slight difference here, so on Ledger activation took place on the device itself and could take place without the participation of a computer, here activation takes place through the website https://trezor.io/start/, there or download the program Trezor Bridge, or for the Trezor T model, the Beta version of the Trezor Wallet is available. It does not need to be downloaded to your computer, but is launched directly from the browser, but for me it’s not a fact that this is a plus for security.
Before you start working with the wallet, make sure that the holographic sticker is well pasted; when you remove it, there will still be traces and this is normal, this is necessary for your safety. The software is installed on the wallet via a computer, initially the wallet is clean.
On Model T, the seed phrase is set on the wallet and does not appear on the computer, unlike Trezor One, which provides more security. Only now Satoshi Labs decided that there is already enough security and in the standard settings a passphrase of 12 words is set instead of 24, which in my opinion is an unacceptable simplification of security. But you can use the recovery function to download wallets with a seed phrase of 18 or 24 words.
By the way, here recording and checking the seed phrase will be faster and will not take more than 10 minutes, due to the touch screen and the fact that for verification you will be asked to enter not all words, but only some. On Ledger you will be forced to enter everything, and even using only two buttons, which will take up to half an hour, but I believe that security cannot be excessive and you can suffer just once.
The functionality of the wallet is not complicated, there is no need to upload wallets for each currency to the wallet, they are simply selected from the list in the service itself. The interface is pretty standard, but let's take a closer look at it:
- Your connected wallet will be displayed here, you will be able to configure it, view the firmware version, change the PIN code and other functions. Below in the same block there will be your account, here you will see your cryptocurrencies and their balance.
- Your transactions on the selected account will be displayed here in a convenient graphical form.
- Here is the public address of your wallet for receiving funds; this is where you can top up your wallet.
- And here you can send money from your wallet to any other address.
- Signature and verification - this function is needed when some service or exchange asks you to confirm that this wallet is really yours.
As you can see, all the functions are standard; if we compare hardware wallets, then in my opinion the Ledger Nano S wins in terms of price/quality ratio, and I personally like its design better. I don’t see much point in comparing with Trezor One, but with Trezor T it’s already possible to compare, but the price will still be behind Ledger.
MinePlex bot staking MINE (PLEX) coins
Another interesting telegram bot is MinePlexBot , it is also based on the telegram platform. Earnings on it are only for the MINE coin. You can buy a coin inside the bot, as well as exchange it for popular cryptocurrencies.
Register with MinePlex and start earning
You buy a MINE coin and the staking accruals go in the PLEX coin. Then you exchange them back for mines and send them back to work. The only difference from the previous bot is that sending coins to staking occurs when you press the button of the same name.
What is Bitcoin
Let’s imagine for a moment that all we know about BTS is that it is a cryptocurrency. In order to understand how to protect our savings, it’s worth broadening your horizons a little with the following data:
- A virtual coin that is not issued by the state and cannot be counterfeited;
- Product of computer farms;
- A specific set of codes protected by a cryptographic structure;
- A valuable resource with the potential of a global currency for settlements.
Considering the intangible nature of the coin, as well as its “under-prohibition and under-authorization” in countries around the world, the logical question arises of what to do with it and how to safely store it with the possibility of making a profit.
Richard Branson, founder of the Virgin Group corporation with 4.9 billion. fortune, recommends a unique way to invest such money to people who have made fortunes on bitcoin: “If a person has a lot of bitcoins, if I were him, I would spend them on building a spaceship.”
BTCBanker - earnings on microcredit
I have already written about the Btc Banker cryptocurrency exchange service, but this service allows you not only to exchange Bitcoin for rubles. Btc Banker allows you to start making money on lending. In the main menu, click the “earn” button and go to the additional service LoanBanker - here you simply indicate what loan you want to issue and at what interest rate.
The person who needs it takes a loan and begins to generate income for you. The method is, of course, different from staking, but in any case it can bring you more significant results.
To exchange other cryptocurrencies, use bots from the same service:
- LTC_CHANGE_BOT - for Litecoins (LTC);
- DOGE_CHANGE_BOT - for Dogecoins (DOGE);
- DASH_CHANGE_BOT - for DASH coins;
- BCC_CHANGE_BOT - for Bitcoin Cash (BCC);
- ETH_CHANGE_BOT - for Ether (ETH).
MyCrypto and MyEtherWallet
Previously, these wallets were one, but not so long ago their creators diverged and two versions of wallets appeared. Their functionality is almost identical, but I like the design and usability of MyCrypto better, and with it it will be more difficult to get to a phishing site, since the name is simple and there are few options to change the site address, but MyEtherWallet is more difficult to write and there is a chance of not noticing a spelling error higher.
This is what the MyEtherWallet interface looks like, it is generally very similar to MyCrypto, but the integration system and interface on MyCrypto are simpler and more intuitive, so we will analyze it using its example.
As you probably already understood from the name, both of these wallets are designed mainly to work with Ethereum and tokens based on it. This wallet will be useful to you if you invest in various ICO projects, although if you have a Trezor hardware wallet, then they have already added the ability to work with ether tokens without integration with MyCrypto, and Ledger will add this ability soon.
So, when you first enter the site, you will see this picture, we can enter the interface using Ledger and Trezor hardware wallets, our wallet on a computer, the MetaMask extension for Google Chrome, a wallet on a mobile device, just look at all the information on the public address, log in using a public key created earlier, using a generated key file, or using a seed phrase.
If you don’t have an ether wallet at all, then it’s time to create one; if you have hardware wallets, then naturally go through them (don’t worry, the safety of your funds is not in danger), and if you don’t have any, then I recommend using the MetaMask extension. Click on it and install the extension in the Chrome browser.
In the extension, we create a mnemonic phrase of 12 words and, as usual, write it down on paper. MetaMask allows you to add multiple Ether wallets and switch between them. If you don’t want to work through browser extensions or you don’t have Chrome, then download the MyCrypto application - this wallet will be on your computer and is completely identical to the online version on the site, only on it you can already create a private key using the already familiar method of a seed phrase from 12 words or a special encrypted file.
Now that you have a wallet address, let’s integrate it with MyCrypto, select MetaMask and get into the main interface.
- The main window where we conduct transactions with the ability to regulate the size of the commission, and a public wallet for receiving ether or tokens of the selected asset.
- Public address of the main account in the ether system and current balance.
- Links to systems for tracking current transactions and for searching for tokens.
- The balance of ETH and tokens tied to this ether address, the tokens do not have their own Blockchain and are tied to your address in the Ethereum system, so it becomes their address too. If you have tokens, but the wallet did not find them automatically, then you need to search for them, if the search does not find them, then you need to manually enter the address of the smart contract - to do this, follow the link etherscan.io from point 3, there we find your token and copy the address from the Contract line into a manual search on MyCrypto.
Now you know how to work with wallets for ether and tokens based on it, since most ICOs take place on Ethereum, then to work with them you will need either MyCrypto or MyEtherWallet. Also, if you want to collect a lot of shitcons, then these wallets will be useful for you.
Okex.com exchange
Okex is one of the most popular cryptocurrency exchanges for trading . This exchange also offers the opportunity to earn passive income through savings, loans, DeFi and Staking. Go to Okex to register.
Using this exchange you can get the maximum benefits from owning cryptocurrency. At the moment, there are more than 70+ altcoins available for POS mining. Simply send your coins for staking and, starting from the second day, receive daily profits. You can start with any amount and, just like on the Binance exchange, choose either a flexible or a fixed type of income - they naturally differ in profitability and in the storage time of the cryptocurrency.
Just look at the percentage of returns on some coins!!!
Make the right choice
Today, the cryptocurrency market offers a variety of storage methods, which differ not only in the place where you can hide your keys, but also in their types. There are a few things to consider when making your decision:
- safety;
- frequency of crypto usage;
- the amount you will keep.
Security is one of the most important criteria, especially when it comes to money. For example, exchanges allow you to quickly trade your crypto, but they are not the most reliable place to store cryptocurrencies. At the same time, a hardware wallet provides the highest level of protection, but you will be conducting transactions with it for quite a long time.
Therefore, the second criterion will be the frequency of transactions. If you are a trader, or carry out most of your calculations using cryptocurrency, then you need to choose online storage. If, for example, you are investing for the future, then it is better to freeze your funds.
We don’t have any dictatorship, no one forces us to put all our eggs in one basket and live in fear. If your friend is Satoshi Nakamoto, thanks to which you have a thousand or two bitcoins, then you can allocate 2-3 bitcoins for hot storage, and throw the rest in the freezer. Avoid storing large amounts online.
Klever.io: storing coins in a wallet on your phone
Klever.io - go to register in the wallet and earn money on staking. Another great service that is quite convenient to use is the Klever.io wallet, it also allows you to use the Staking system. The wallet itself has a fairly large number of coins for use, but only TRX and KLV are charged interest for storage.
In fact, it is very convenient to increase your coins on it; a special plus is its affiliate program. In fact, you can recommend using this wallet to your friends and get additional income from it.
Blockchain technology and cryptocurrencies. Fast start
Get the book and learn all the basics of blockchain technology and cryptocurrency in one evening
The second criterion follows from the first and directly implies the place where the key will lie. Such places include exchanges, multi-currency web wallets, mobile or desktop applications, paper or hardware wallets. The last two are specifically related to cold storage, while the rest are hot.
The third, less important classification criterion is the number of currencies. There are single-currency and multi-currency wallets. The latter make it possible to throw everything into one basket, which is quite convenient, but less secure.
Staking: storing in your own wallet
Options for storing in your own wallet - it is not necessary to use services, you can choose altcoins at your discretion and start earning. There is a website https://www.stakingrewards.com/ that lists coins with POS mining.
Download your wallet, set up the system (if necessary) and make the required cryptocurrency deposit - you start earning money. That is, you receive a percentage for storage. The website shows options for storing coins: Staking, DeFi, StableCoins, Lending, Proof0of-Stake, MasterNodes.
You will have to make the settings for each coin yourself; there is no information on these coins on our website yet. I think in the future instructions for settings will appear on the website NewCripto.ru
Browser extensions
Another type of online wallet that still stands apart is cryptocurrency extensions for Opera, Chrome and Firefox browsers. The plugins are similar in convenience to popular online wallets, but their security remains at approximately the same level. There are frequent cases of such applications being hacked and user funds being stolen.
The browser extension for storing cryptocurrencies is easy to use: you just need to download the wallet of interest from the application store and install it on your device. Often such wallets support almost all popular coins, so you only need to install one extension.
In addition to the hacking problem mentioned above, you should be more careful about your device and prevent the installation of dubious applications or viruses from entering the system.
Pros and cons of Staking
What are the pros and cons of PoS mining? In fact, there are quite a lot of advantages here, which you, of course, already understood from the article:
- First of all, this is a simple type of mining
- Minimum entry threshold
- Passive income without your participation
- Does not require knowledge or experience (suitable for anyone)
- No deposit restrictions
- No need to have fixed amounts (as in banks or when investing)
- Moderate risks
- Guaranteed profitability (available with a fixed rate)
- Large selection of investment sites
- Different types of staking: by maturity, by interest, by profitability
- Variety of coins available for storage
- No risk of non-repayment of investments (the coin remains in your wallet)
Of the minuses , everyone, of course, can find some shortcomings for themselves. I indicate only those that I see myself:
- Frozen assets (by the way, not all services freeze coins and you can even trade them)
- Removal of commission when withdrawing from staking (most services do not charge commission, only for early withdrawal).
- High volatility (but if we store it for a long time, it doesn’t matter)
Removable media - hardware wallets and flash drives
The second method is to store cryptocurrencies on removable media. These can be either regular flash drives or special hardware wallets. The first type involves transferring a backup copy of an offline wallet to a flash drive or disk.
Since flash drives do not yet have wireless communications, the only threat to your coins is the loss of the storage medium. That is, with due care, this is a very safe method. If you do not take into account the failure of your “wallet”, which can also happen with any electronic device.
The safest way is considered to be the use of Hardware wallets for storing cryptocurrency. This is a “cold” type of wallet; accordingly, the funds on it are intended only for storage.
Trezor or Ledger are representatives of this type of device. They work on the principle of a token with an electronic signature used to confirm transactions. Many of these wallets support almost all types of cryptocurrencies, because they are essentially cells of information not connected to the blockchain. You can ensure the safety of your hardware wallet by hiding it securely or putting it in storage.
