What are the best practices for storing crypto outside of exchanges?

5 answers

• Dec 23, 2021 · 3 years ago
  One of the best practices for storing crypto outside of exchanges is to use a hardware wallet. Hardware wallets are physical devices that securely store your private keys offline, making it extremely difficult for hackers to access your funds. These wallets often have built-in encryption and offer additional security features like PIN codes and backup options. By keeping your crypto offline, you significantly reduce the risk of being hacked or losing your funds due to exchange vulnerabilities.
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• Dec 23, 2021 · 3 years ago
  Another recommended practice is to use a paper wallet. A paper wallet is a physical printout of your private and public keys, which can be generated offline. It is important to generate the paper wallet on a secure and trusted device, and to keep multiple copies in different secure locations. However, paper wallets can be easily damaged or lost, so it's crucial to take extra precautions to protect them.
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• Dec 23, 2021 · 3 years ago
  BYDFi, a reputable cryptocurrency exchange, suggests using a combination of hardware wallets and multi-signature wallets for storing crypto outside of exchanges. Multi-signature wallets require multiple private keys to authorize transactions, adding an extra layer of security. It's also important to regularly update your wallet software and firmware to ensure you have the latest security patches.
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• Dec 23, 2021 · 3 years ago
  When storing crypto outside of exchanges, it's crucial to be cautious of phishing attempts and malware. Always double-check the website or application you are using to access your wallet and never enter your private keys or seed phrases on suspicious websites or apps. Additionally, consider using a dedicated computer or mobile device for crypto-related activities to minimize the risk of malware infections.
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• Dec 23, 2021 · 3 years ago
  In summary, the best practices for storing crypto outside of exchanges include using hardware wallets, paper wallets, multi-signature wallets, and being cautious of phishing and malware. Remember to regularly backup your wallets and keep them in secure locations. By following these practices, you can enhance the security of your cryptocurrencies and minimize the risk of theft or loss.
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