Hardware wallets, or Without the private key, the cryptocurrency does not belong to you

2018 showed kriptosistem that there are many risks that must be offset. These include the security threat. What you can do for the safety of their coins in 2019? We want to know what makes different blockchain projects to counter network attacks. We want to see that the exchange take additional steps according to the type of two-factor authentication. However, sometimes the community is fond of the activity companies that they forget about their own responsibility for scriptactive.

The contents

The recent cases of theft of cryptocurrency

Since the cryptocurrency industry is in its infancy, it is not surprising that in the past we often met with inadequate security measures, which resulted in the break-ins and theft. In one of the latest attacks, the hackers stole the coins almost 60 million dollars from the Japanese stock exchange Zaif – and this is just one example.

At the beginning of 2018, another Japanese exchange Coincheck has gone down in history as the biggest victim at the moment of stealing cryptocurrency from the exchange, losing assets by approximately $ 400 million. 2018 actually turned out to be a record break-ins sites and lost money. Once we know that in the past year investors have been subjected to great personal risk, what should be done in the present to reduce the risk? Let’s talk about the hardware wallets: what are they, why use them, and how you can protect yourself in the new year.

In cryptosuite there is an old saying: if you have no keys, then your cryptocurrency does not belong to you. In this sentence actually summarizes the problem of cripture.

The exchange is overwhelmingly centralized platform to facilitate transactions. It is not the banks. Although the major stock exchanges like Binance, Coinbase, and others far advanced in terms of measures of security. In case you actually trust the security to a third party instead of yourself to take care of safety of funds. And here it may be useful to hardware wallets.

What is a hardware wallet?

Image source — Hardware Wallets

Hardware wallet is a physical device used for secure storage of private keys away from everyone except the main user. These devices store your private keys in encrypted offline environment. This means that your wallet is not vulnerable to the attacks against exchanges and even individual investors, through a software of wallets. We are talking about purses on a computer or phone with Internet connection, also known as “hot wallets.”

Why use a hardware wallet?

The answer is obvious: safety. Storage of crypto-currencies, especially long – term investments on the hardware wallet ensures that the asset really belongs to you and is protected. Storage of crypto-currencies on the exchange can be represented as the existence of payment obligations, not the cryptocurrency. If you exchange something happens – be it hacking, Scam or some unforeseen problem with the team exchange your bitcoin will be lost.

How to get a hardware wallet?

Investors a variety of options for offline storage, including any offline computer and paper wallet, but they have their limitations. Fortunately, with the development of kriptonyte there are many companies that specialize in creating hardware for the secure storage of cryptocurrency. You may have heard such famous titles as the best wallet, the Ledger Nano’s and KeepKey. All three are excellent and easy to use options. These and other wallets support different cryptocurrency that allows you to store bitcoins, esters and all kinds of tokens in one place.

Source: Hash Telegraph

Safety tips

Of course, the hardware wallet is just a tool, though effective. It is important to remember that in the end, security depends on you. So here are some tips for the safe use of the purse:

  • always buy hardware wallet directly from the manufacturer: avoid over cheap used purses from flea markets, and especially free of the purses that give at various events;
  • always make a backup led-phrases and phrases to restore the wallet: it’s a mnemonic phrase that will be needed to restore the wallet if it is lost or stolen;
  • always store the wallet seed phrase and a phrase for recovering separately and in a safe place: if someone finds your hardware wallet, which is stored in the safe or Cabinet along with everything else that is needed to restore the wallet, you’ll help the thief. Ideally, all this should be kept in different safe places. Let it be a safe, Deposit box and so on.

At the end

Hardware wallets are much safer than storage of cryptocurrency on your phone or PC, and certainly much better than storing funds in the stock exchange. But do not forget that ultimately, safety depends not on them but on yourself. More data look at cryptodata.

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