The issue of storage is a fundamental issue in the cryptocurrency ecosystem. If we find quite easily tutorials on the Internet that explain how to buy cryptos, we talk quite little about storage. So, how to store crypto-currencies?
During this article, we will tell you about the different solutions to store your crypto-currencies in a more or less secure way. We will see to conclude, which option is the most suitable according to your needs. How a digital wallet works
The digital wallet translates into English as e-wallet, usually abbreviated wallet. It is also this last term that we will use throughout this article. So how does a wallet work and how to use it for cryptocurrency storage?
We can compare the wallet to a bank account, to facilitate the understanding of the whole. As soon as you have a wallet, you will receive two separate keys: the public key (which could be assimilated to a RIB/IBAN) and the private key (which can be compared to a password to access the bank account).
Like rib and IBAN, the public key of a wallet is only used to identify the user. This key can therefore be shared and must also be made available to other users who wish to make a transaction to your wallet.
On the other hand, the private key is, as its name suggests, private. It must not be sent to other people under any circumstances since it allows access to the content of the digital wallet. If the private key of your wallet lands in the wrong hands, your cryptocurrencies may disappear forever. And this even if they are stored on a secure device.
So that’s how a crypto wallet works. In the rest of this article, we will see the different types of wallet on which it is possible to store cryptocurrencies, including Bitcoin, Ether, etc. The different types of wallet where to store cryptos
As we have suggested, there are different types of wallets. The operation generally remains the same, but it is often on the storage system that the difference is made.
There are two distinct categories: the “cold” wallet (offline wallet) and the “hot” wallet (online wallet). Offline wallets
The offline wallet or cold wallet is a method of storing cryptocurrencies off-network. Since there is no way to access it remotely, it is the most secure category of wallet. Due to its security, the cold wallet is preferred by the most cautious and those who hold a relatively large number of crypto-currencies.
There are two types of offline wallets: the hardware wallet and the paper wallet. These two options all allow you to store cryptocurrencies without being connected to the internet. Now as you will see below, the transaction method is slightly different. The hardware wallet
The hardware wallet is a “physical” cryptocurrency storage medium. In other words, it is a full-fledged electronic device that allows you to store Bitcoins, Ethers and other cryptos independently of the internet. The hardware wallet is a great success with users who have a relatively large reserve of crypto-currencies.
Currently, the reference in hardware wallet is the French start-up Ledger. Following successive fundraising, the Parisian start-up has established itself on the international market. It must be said that Nano S, the cryptocurrency storage medium proposed by the team was rather revolutionary at the time.
But if Ledger Nano S has attracted many investors and users of cryptos, the Ledger Nano X has only strengthened the already dominant position of the start-up in the market of cryptocurrency storage wallets. Indeed, the Ledger Nano X meets all the requirements in terms of safety and practicality.
Wireless, the Ledger Nano X is a storage medium equipped with a Bluetooth chip. Thanks to this technology, users can control the storage of their crypto-currencies from a mobile application and that, always without the need for access to the internet. Despite the presence of Bluetooth, this device remains in the category of offline wallet. © Journal du GeekLe paper wallet
The second choice when it comes to cold wallets is the paper wallet that could simply be translated as paper wallet. This is a relatively secure option for storing crypto since there is no interaction with any other electronic device except via a camera.
On a paper wallet are printed the public key of the wallet as well as a QR code. By scanning it from the camera of a smartphone, there will be an interaction. The action triggered by the scan of this QR code is only to transfer cryptocurrencies to this wallet, which makes it even more secure.
To get crypto-currencies out on the other hand, the operation is a little more complicated. It will be necessary to use another type of wallet (online or desktop) on which we will provide the public and private keys to then access the content.
Anyway, in addition to its undeniable security, the paper wallet has the advantage of being completely free. Its only drawback is that if it is lost, the piece of paper takes with it all the stored cryptocurrencies. Making a copy is therefore appropriate. Online wallets
Now let’s move on to the online wallet or hot wallet. As you will have understood, this is a digital wallet whose operation requires access to the internet. Online cryptocurrency storage is the most popular.
It is much easier to use and you can manage your crypto-currencies at any time and from anywhere as long as you have access to the internet.
The only complaint that can be made to this type of wallet is the fact that it is online and, therefore, accessible remotely. This is the reason why it is recommended to make a decision with great care.
To save you hours of research, we advise you to opt for ZenGo, an application that has already proven itself in the field of crypto storage. This is an online wallet on which only the user concerned has the private key. Thus, only this user can access the content of his wallet.
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1 ZenGo wallet interface to store cryptocurrencies © Geek Journal
ZenGo is focused on the safety of its users. Indeed, the application offers an innovative system linked with the private keys of your crypto-currencies. Instead of a traditional private key, ZenGo separates it into two parts: one part is kept in the company’s servers, the other on your smartphone. Thus, the user is the only person who can access his funds, even ZenGo does not have the possibility.
ZenGo also has a particularly powerful facial recognition system. In this way, only the user’s face can open the application.
To use ZenGo, you must go through its mobile application (Android or iOS). This is the only way to access the service. To download the app, you can get started by clicking here.The desktop wallet
The desktop wallet is a “desktop” version of a digital wallet for storing cryptocurrencies.
If we have not classified the desktop wallet either among the online category or among the offline category, it is because it is a bit of a mixture of these two storage solutions. It can therefore be considered in a category in its own right.
The desktop wallet is a software that allows you to store your crypto-currencies directly on your computer. Nevertheless, there are two distinct types for this category: the full wallet and the lightweight wallet. The lightweight wallet