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If your cash isn’t in your wallet it is probably in the bank. The bank keeps it safe in a vault. Digital coinage is first in your trading program’s storage, i.e., website. From there you can put it in a wallet or a vault.
Sadly, the transfer costs money, but just a tiny percentage of the transfer. This may not be worth it if you only have a small amount of digital coin, but those who have vast amounts invested need the added security.
Online Wallets For Crypto
Like the wallet in your pocket or purse, the digital wallet has dubious security but is handy storage.
If you’re like me, you’ve got a few dollars on the end table, some coins in the bottom of my purse, and some finds its way into the washing machine or sofa cushions. If only I were responsible enough to quickly put it all in my wallet.
My digital money is much the same. Some on this website and some on that. Some in this wallet and some in the other wallet. Not highly organized.
Since most of my digital currency was on Coinbase, it only made sense to move it to the Coinbase wallet. I was shocked to learn there is a fee to do so.
Coinbase, itself, doesn’t get the money from the fee; it’s called a miner’s fee. Without going into detail, a miner’s fee involves the money a miner gets for transferring funds into a block. Thankfully, for someone with my feeble coinage, this is scarcely noticeable.
Coinbase is a hosted wallet service, which means they manage your private keys for you, securing your funds with a password, device confirmation and 2-factor authentication. Coinbase uses secure cold-storage technology to protect customers’ funds. They aren’t able to provide access to your private keys unless you are using their Multi-Sig Vault.
Uphold is a service much like Coinbase, and will be covered with more depth in a future article. It has its own wallet that, like Coinbase’s, is free.
Uphold is a cloud-based digital wallet that enables anyone, anywhere, to move, convert, hold and transact in any form of money or commodity instantly and securely. You can also use its various cards as wallets.
Other Wallets To Consider
Much like having a USB storage device, a hardware wallet is a digital wallet that you can carry around like a tiny bank. They have much more security; just make sure you don’t lose it!
Your information is stored offline so it can’t be hacked. Many people keep more than one, in case one is lost. A great place to store these is a bank deposit box or a safe in your home.
Some Popular Hardware Wallets
My unimpressive investments don’t merit such high-end security. And knowing me, I’d lose the darn thing.
I would have these destroyed in no time. The ledger would get tossed into my recycle pile, dropped into a trash can, or – a likely scenario – the cat would chew it!
Paper wallets are an offline cold storage method of saving cryptocurrency. It includes printing your public and private keys on a piece of paper which you then store in a secure place.
According to Cryptomorrow: A cryptocurrency paper wallet is just a hard copy piece of paper containing a private key that is associated to a public key that is in turn associated with an address that confirms ownership of a given cryptocurrency and allows you to store, transfer and transact that cryptocurrency.
Digital vaults hold much more than cryptocurrency. According to TotalDigitalSecurity.com, a vault is: The safe-deposit box for the digital age. Online digital vaults for sensitive and treasured electronic files are the safe deposit box of the future. Digital vaults are highly secure, off the cloud (but feels cloud-like), safe from fire and other natural disasters, and protected from the daily attacks on your privacy and personal information.
Codific says Digital Vault is a secure space that allows us to store any digital information. It is intended to protect its contents from theft, unauthorized use and other threats. Much like a modern bank vault our Digital Vault has an armored wall and a tightly fashioned door closed with a complex lock.
Do you have a preference? If you’re just getting started, do you plan to even use a wallet? Where would you keep a paper wallet – how would you protect it? Do you prefer a vault? Let us know your ideas and questions in the comments below!