filadendron/Getty Images
Bitcoin and other cryptocurrencies have experienced a boost this week, with Bitcoin hitting $90k on what many think are headwinds from an incoming Trump administration. Whether you’re looking to invest in crypto or you’ve been HODLing since the beginning, you’ll need a good place to keep your digital currency.
Choosing to leave it on a crypto exchange would mean you’re trusting the company to hold it for you in a custodial wallet, which means you don’t fully own the asset.The better option is to move it to a non-custodial wallet of your own — which gives you complete ownership.
What is a crypto wallet?
A crypto wallet’s primary function is to keep your crypto safe and allow you to make trades. However, wallets also offer more control over your digital currency than you’ll get using a standard account at a crypto exchange or brokerage.
Crypto wallets can be external hardware devices — cold storage wallets — or software that runs on your mobile device or computer — hot storage wallets.
Cold storage wallets are physical storage units that are kept offline and can only be accessed using a dongle — a physical USB that has to be plugged into your computer. They are generally thought of to be more secure than hot wallets because they’re not connected to the internet, but hot wallets are typically more easily accessible for making trades. Hot wallets include:
Mobile app wallets use software installed on your phone
Desktop wallets use software installed on your computer
Browser extension wallets can be noncustodial like Metamask, or custodial like Binance
Unless you’re making daily crypto trades or have only a modest amount of money invested in crypto, we recommend you don’t store your crypto in a custodial wallet.
Best practices for holding crypto include purchasing a cold wallet for offline storage. Your next best option is a
Crypto is On a Post-Election Run. Here Are the Best Crypto Wallets to Store Your Bitcoin and Doge
RELATED ARTICLES