Proper cryptocurrency stashing is a big deal for anyone who wants to keep their savings safe and avoid messes. Since the beginning of 2025, the topic has been getting a lot more popular (at least from what we’ve seen in the very first month – Trump’s cryptocurrency has a lot to do with it), and with that, the risks are going up too.
Hackers and scammers are always finding new ways to attack people who deal with cryptocurrency.
This article is meant to help you avoid those. We’ll go over where to store crypto, which methods are suitable, and what you need to take into account to keep your assets completely safe.
Read on, and we’ll tell you all.
Also, if you need to swap crypto, you can do it at xgram.io. Here, you can do the exchange on any device – smartphone or PC – zero difference. The site has a user-friendly UI, as well as good exchange rates. By the way, the service also boasts uncompromising security, as it uses only proven protocols.
What is a crypto storage – where is cryptocurrency stored?
Storage is all about how you keep and access digital assets.
For example, with Bitcoin or Ethereum, or even both at once.
We want to emphasize that it’s important to understand that while your actual cryptocurrency isn’t physically held in a wallet, the records of ownership and transactions are stored on the blockchain.
As for the storage options, they come in all sorts of forms. We’ll talk more about that now.
Types of cryptocurrency storages
Let’s start from the basics here.
Hot and cold wallets, that is.
Hot wallets, accessible via the Web, are perfect for seamless transactions. They come in various forms, like mobile apps, web services, and desktop apps, making them pretty convenient. However, they’re also more vulnerable to hacking and theft.
On the other hand, there are cold wallets. These hardware or software entities don’t connect to the Web, ensuring maximum security. In the first case, the info is stored on physical devices, and in the second, it’s on local media.
They’re more secure of course, yet trickier to manage.
There are also paper wallets. These are physical, QR-coded forms used to store keys. Most of them allow you to download code and generate new addresses offline.
Whilst inherently resistant to online hacks, they have several flaws that make them risky.
Finally, hardware wallets. Physical, USB-like devices that represent a pretty secure storage method. They keep private keys offline, significantly reducing the risk of a theft.
Well, online one. At the very possible least.
Custodial versus non-custodial vaults
Now, we find it imperative to discuss the concepts of *custodial* and *non-custodial* wallets. The former, typically facilitated by exchange platforms, involves the use of a third party to store and manage user funds.
This very third party assumes a guarantor role.
Consequently, it’s crucial to acknowledge the extent of access the custodian possesses, including the private keys and the funds themselves.
In contrast, non-custodial bends empower their owners with direct access to their private points. Thus, in the event that a wallet like that is lost or misplaced, the responsibility for its recovery falls upon the owner.
So, how to keep your crypto safe?
Now, let’s talk about how to protect both your savings and investments.
Go for 2FA
Want to definitely bolster the security of yours?
Employ two-factor authentication (2FA) then. Like wherever it is available. And if a platform does not support it directly, do utilize an application, such as Google Authenticator, in lieu of an SMS-based one. And in the event that SMS is the sole option available, make sure that a new code is required for each login – in order to prevent the compromise of a stolen password.
Use strong, unique passwords
Following the recording of seeds, the application will prompt to set a password. Here, it’s advisable to employ one that incorporates a combination of numerals, upper- and lower-case letters, and even special characters.
Also, remember that it’s strongly recommended to avoid reusing passwords across multiple platforms. If one is hacked or leaked, the other one is immediately compromised. An attacker can easily gain access to storage through brute-force attacks then.
Secure (backup) your wallet
Always back up your private keys and recovery phrases regularly in safe, offline locations. You can even do this on paper. Don’t be embarrassed if this sounds too traditional: this method is still secure because you’re almost 100% protected from, for example, stealers.
Which can infect your device almost by accident, like when you surfing the web on outdated browser. Or when you download something… Wrong.
Stay alert for phishing
Always (like, really) verify links and email addresses prior to sharing sensitive data. Additionally, consider utilizing some storage solutions such as LastPass, which can automatically fill in forms on legitimate websites.
But on sites that aren’t legit, they just won’t. You‘ll be safe.
Best practices for storing cryptocurrency safely
Reasonable enough to assume that there are optimal practices.
In this exact regard.
So, a recommended approach to safeguarding assets involves the utilization of hardware wallets for the long-term *and* significant holdings. Also, note that the diversification of assets across multiple wallets can significantly mitigate risk.
Additionally, it is imperative to create and store backup recovery phrases in multiple locations to ensure redundancy and mitigate potential risks.
Risks to be aware of
We think it makes sense to end this material with a few risks that you may face when using such storages. These are, for example:
- Private key loss – losing your private keys results in permanent, unrecoverable failure of your cryptocurrency.
- Hacking & phishing – sophisticated cyberattacks can bypass even strong security measures.
- Physical theft – physical storage methods, like hardware or paper wallets, are still somewhat vulnerable to theft. That’s just it.
- Just some ordinary human errors – mistakes like incorrect backups or accidental deletions can cause irreversible losses as well.
Conclusion
Ultimately, the responsibility for safeguarding one’s cryptocurrency is incumbent upon the individual.
The owner, that is.
While securing digital assets may appear challenging, it can still be a somewhat manageable process.
This material of ours has outlined some critical practices, including the utilization of hardware wallets and the activation of two-factor authentication. Do always remain vigilant against the emergence of novel threats that may surface from time to time.