Crypto prices appear to have an unstoppable upward trajectory. With Bitcoin and Ethereum reaching historic records again this month, more people are investing their money in digital currencies. And they have a variety of options to keep their investments safe.
Cryptocurrencies are stored in what is called a wallet, which has a private key associated with it, similar to a password. The easiest way to put your coins in a wallet is the cryptocurrency you used to buy your currency (think Coinbase or Gemini). But more traditional companies like PayPal and Robinhood, also added options to buy, sell and store encryption.
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Crypto owners who want complete control over their investments can also rely on digital wallets managed by software locally on the user’s own device. For an extra layer of security, you can consider using what is known as a cold wallet, which is essentially a local device like a hard drive that is not connected to the Internet.
Companies like Trezor and Ledger manufacture special units specifically for cryptocurrency wallets. Companies say that confidential information is not exposed even when the devices are connected to the computer (just don’t lose the device or the key needed to access the data on it). Check out the video above for a detailed analysis of how all of these options work.