I’ve received a number of emails asking whether the likes of Coinbase or Bittrex are safe places to store cryptocurrency. In an ideal world the answer would be “yes”, but with the rise in hacking attempts you can never be too safe.
Of course, the safest way to protect yourself from online threats is to go offline and that’s exactly what a hardware wallet does.
What is a hardware wallet?
A hardware wallet is an electronic dongle which manages your cryptocurrency securely. Everything is done on the actual device so you could even plug it into a PC infected with malware and still keep hold of your Bitcoin.
That gives great peace of mind, especially as Bitcoin and Ethereum prices continue to rise.
Which hardware wallet should I use?
There are a number of hardware wallets available, but I went for the Ledger Nano S after reading a bunch of reviews. Sure, I still have a bunch in Bittrex for trading purposes, but the last thing you want to do is get hacked and lose everything in one go.
For the sake of €58 and 20 minutes of your time, be safe!
Ledger Nano S
The packaging is slick; it’s almost like unboxing an iPhone! Along with the hardware wallet itself, you receive a USB cable, lanyard and the shortest amount of documentation I have ever seen… it’s literally a card pointing you to a web address to get started. I love that!
Setup was much easier than I’d expected and, after 20 minutes, I had my Bitcoin, Ethereum and Ripple all loaded up and sitting there safely.
The following video shows you just how easy it is to set up and use the Ledger Nano S:
What if my hardware wallet is lost or stolen?
If you lose your Ledger Nano S, simply buy another one and use your 24 “Recovery” words to regenerate an identical wallet. If it’s stolen and the thief enters the PIN incorrectly three times, the device wipes itself.
No-one can hack in and take your coins because you have to physically press the buttons on the side of the device in order to complete transactions. Besides, once you unplug the USB cable, no-one can even see your hard-earned coin. There’s nothing to hack into!
In Summary
It’s almost inevitable that websites are going to get hacked in the near future. The rising cryptocurrency prices are brilliant for investors, but also a massive incentive for hackers to find new ways to steal Bitcoin, Ethereum and anything else they can easily turn into cash.
It is very easy to keep your cryptocurrency safe, so do it today and rest easy.
Click here for full details of the Ledger Nano S
P.S. I wouldn’t recommend buying from eBay or anything like that. You never quite know what you’re receiving and, when security is the whole reason for buying a hardware wallet, be secure! The link above takes you directly to the manufacturer’s website.