Where to Securely Store Your Crypto in 2023?
There are a lot of exciting developments in the world of cryptocurrency that we can expect to see in the next few years. From new coins and tokens adopted by businesses to introducing more security measures for users, plenty of changes will make it easier to keep your crypto safe from hackers and track its value.
Many big questions still need to be answered about where cryptocurrency’s future will lead. Which coins might be adopted more widely? Which blockchains might need help to keep up with increasing demand? How will these different platforms cope with all the new security measures introduced now?
Many solutions are currently getting developed, so let’s look at some of the most exciting possibilities.
More Secure Wallets and Storage Options
First, let’s look at how you can store your crypto. The most common way to keep your coins is in a wallet. You can choose between desktop, mobile, or hardware wallets. Desktop wallets are downloaded directly to your computer, offline or online, making them a little more secure but more challenging.
Mobile wallets are downloaded directly to your phone, similar to the desktop versions, making them a little more secure than a standard wallet. However, as smartphones are more often physically lost or stolen than computers, they are not usually the best choice for security.
Hardware wallets are special storage devices designed to be as secure as possible and are usable with online wallets. Another critical crypto security factor is the number of confirmations needed for your transaction and the number of assets on a single chain.
If you own Bitcoin and Ethereum, you will want to transact on the Bitcoin blockchain since Ethereum is not as secure. However, if there are other coins you want to transact with, you must use the Ethereum chain.
More Robust Exchanges
The most significant security breach in crypto history was the hack of the Japanese exchange Mt. Gox in 2014, where $473 million in Bitcoin got stolen. Since then, exchanges have become more regulated, but the rapid growth of the crypto market and the increasing number of new coins added to exchanges has created a new problem.
Exchanges have struggled to keep up with the increased demand and have suffered from managing thousands of new coins daily transactions. In some cases, they have even closed down while they add new security features to their platforms.
Some new features and technologies could help exchanges keep up with demand, like decentralized exchanges (DEX), which allow users to trade their coins from one wallet to another directly. Furthermore, DEXs are more secure than centralized exchanges since they use the blockchain to track and execute the trades, rather than a central server where hackers can easily breach the system.
Secure Brokers
Another new trend in the crypto market is the rise of crypto platforms like Immediate Edge. These are companies that allow you to make trades using their platform. The benefit of using a broker is that you don’t have to set up a wallet or store your coins in any way.
Simply put, you own none of the coins you buy, and you are not responsible for the security of your coins. What’s advantageous about this setup is that you can easily trade with various currencies while keeping your funds in a secure wallet. This process prevents you from losing money if a particular coin’s value drops while you wait to sell it.
The disadvantage is that you don’t own any of the coins you buy, which means you can’t profit from their future growth as you would if you owned them. Additionally, you don’t have any control over the exchange rates or the ability to withdraw your funds at any time.
How to Choose the Right Option for Your Needs
In the future, we’ll likely see more hybrid exchanges where the centralized exchange operates more like a broker but with decentralized security.
To use the highest level of protection, consider using a DEX. If you’re starting, it’s a good idea to use a centralized exchange that offers a wide range of coins and has a low threshold for the minimum amount you have to exchange since you’ll be able to learn the basics of buying and selling while keeping your coins in a secure wallet.
Suppose you’re an experienced trader; you should use a decentralized exchange. This way, you have complete control over your funds and don’t have to worry about the exchange getting hacked. However, you will have to use a wallet where you store your funds and keep track of the exchange rates.
Final Thoughts
This article has featured the latest news and trends in the crypto world. We’ve looked at the most secure ways to store your crypto and how exchanges will adapt to keep their customers’ funds safe. There are some exciting new developments in the world of cryptocurrencies, so there’s never been a better time to get involved.
