Security of Cryptocurrencies
By: Adeyemi Boboye
Tags: Wallet, Tezos, Cryptosecurity, Nft Marketplace

Security of Cryptocurrencies

Source: Unitesict

One of the key points any technology or solution is selling in the financial world is security. With the way Defi is gaining attention over Traditional finance, if people are to adopt Defi fully, then they must be well assured that their Cryptocurrencies are safer in their hands than the banks.

How to keep your Cryptocurrencies safe.

In the cryptocurrency ecosystem world, you have different options to keep your cryptocurrency.

Exchange: You can decide to keep your cryptocurrency in a Centralized (CEX) or decentralized exchange (DEX).

Wallet: You can also decide to keep your digital asset in a hot wallet or a cold wallet.

The medium chosen depends on preference, however, I’m going to have a brief explanation of the two in order to help you get a view of the option to choose.

Difference between an Exchange and a wallet

There seem to be a lot of mix-ups when it comes to Exchange and Wallet, however, they are two different things entirely although they are both used to trade crypto.

Crypto exchange is where you can store your coin and use it actively to trade, why when it comes to a wallet it is more secure, however, you can’t use it actively to trade. Some major cryptocurrency exchanges also have a wallet that they support.

Cryptocurrency Exchange

To give a further explanation on this, a cryptocurrency exchange is a place where you can buy your Cryptocurrencies like Bitcoin, Stablecoin, and cryptocurrency tokens at a fixed price with securities. Some cryptocurrency exchanges allow you to do future and spot trading on their platform with your cryptocurrency to earn profits.

Decentralized Exchange: A decentralized exchange has a different way in which cryptocurrency traders buy and sell digital assets. Decentralized exchanges operate without a third party and rely on self-executing smart contracts to carry out transactions.

Examples of decentralized exchanges are Uniswap (V2), Tokenlon, and Venus.

Centralized Exchanges: Centralized exchanges enable trading to be carried out in the cryptocurrency ecosystem with the help of a third party. Centralized exchanges also act as a custodian of your funds by facilitating storing and protecting your funds. Examples of centralized exchanges are Coinbase, FTX, and Binance.

Cryptocurrency Wallet

Crypto wallet is good for storing your cryptocurrency as stated earlier, the best thing about wallets is the security, however, you can’t directly perform certain functions like trading on Wallets except you connect them to a DEX or decentralized app.

My focus will be on cold storage wallets. Cold storage wallets are simply the most secure wallets in the cryptocurrency ecosystem.

If you are wondering why the term “Cold storage”, simply means keeping your wallet offline, although other wallets like hot wallets are safe, however cold wallets are safer because of the offline wallet features.

Advisable cold wallet to use

If you are confused about the various cold storage wallet solution to use for storing your Cryptocurrencies, The AirGap wallet is one I’ll highly recommend, however you are free to DYOR (Do your research) and choose the one you feel is best for you

Why AirGap Wallet

AirGap Wallet

AirGap wallet is a cold-storage wallet developed by Papers AG. It is a secured wallet that supports Tezos and is also efficient for keeping the anonymity of the users. The wallet is one of the most security-built wallets in the Blockchain ecosystem.

The AirGap wallet only handles the public information, while the AirGap vault handles the private key.

With the AirGap two-device approach, secure key handling becomes more accessible.

NFT is not supported by all wallets, however, AirGap wallet supports NFTs.

Key Features of the AirGap Wallet

Offline transaction signing.

Offline Secret Storage.

Protocol Agnostic.

Secure storage.

Secure secret creation.

Multiple platforms.

Conclusion: The security of your crypto assets is very important. With a lot of cyber-crypto heist going on, it’s important to get familiar with the best ways to store your cryptocurrency. Security of your wallet is your business. If you don’t take the steps, no one will do them for you