Cryptocurrency: how to retain and secure your currencies?

Unlike the classic legal tender, the digital currency has no material existence. To possess it means that you detain it numerically through a wallet.

You are free not to have to request the services of a banking institution as the depository of your funds. But it is up to you to insure the safety of your digital assets.

How is the cryptocurrency stored?

Wallets are open source software dedicated to the storage of the cryptocurrency. They consist of two inseparable elements intended to give evidence of the reliability of the transactions:

  • a public address: known by other users, it corresponds to an identifier allowing you to receive cryptocurrencies or to consult the balance of your account
  • a private encryption key: coupled with the public address, but only known by you, it has to remain confidential because it allows you to conduct any operation in relation to digital assets contained in your wallet

To highlight the safe keeping of e-money demonstrates the protection of the encryption keys of associated with your public addresses. Be particularly careful and never share or give a private key to anyone, including on the Internet whatever is the reason: numerous scams have for only purpose to steal your assets.

What are the existing various wallets?

According to its nature, a wallet can be accessible by means of various online platforms or, in a disconnected way, from the operating system of a device.

Five types of wallets are usually listed:

  • the web wallet or online wallet: available from the Internet, they are particularly valued for their flexibility of use, but remain exposed to hazards connected to the safety and to the availability of the network
  • the mobile wallet: it is a smartphone application which is very practical for fast transactions, but all the same, it remains very vulnerable in case of hacking or theft of the telephone
  • the desktop wallet: a software to be installed in a computer, its level of safety is better guaranteed provided that the device is correctly protected against viruses
  • the hardware wallet: a means of safe keeping highly secured, it looks like a USB key in which the chip cannot be attacked
  • the paper wallet: this method consists in registering your private key offline, writing it on a piece of paper to be kept in a safe place

How to choose your wallet?

Each wallet presents advantages and inconveniences. Nevertheless the hardware wallet stays unmistakably the best choice on a security point of view.

If you intend to possess only a small quantity of cryptocurrencies, you can turn to a desktop wallet, downloadable free of charge on your computer.

On the other hand, any more important investment requires to definitely favour a hardware wallet such as Ledger Nano S, the leader on the market. Easy to use, it is also 100 % secure. But beware on certain deceitful web sites which propose in the sale of "forged" Ledger Nano S! In order to take no risk and be certain of your purchase, you can order your wallet by using this link of membership.

As for the solutions of on-line wallet, they will be adapted only to the low flows of digital assets and not to the big investors, because of the security failures which can target them.

Consequently, the selection of a specific wallet or the spread of your currencies will depend especially on your investment objectives.

Ledger Nano S - The secure hardware wallet