If you keep your cryptocurrencies in the online wallet of your favorite crypto exchange, it isn’t the safest place to keep your coins. Hackers can track your information, and even the most minor loophole can turn out to be the disc for you. So be cautious about where and how you keep your money.
When it comes to safeguarding your cryptocurrencies, there’s nothing better than a hardware wallet.
What is a hardware wallet?
You may come across news about altcoin heists that dupe crypto traders of millions of dollars. How do you think hackers get the information? It’s through the exchanges. Exchanges are now the easiest targets, leading to millions of dollars of fraud every year.
To prevent that, you can use a hardware wallet instead of keeping your coins in the in-built wallet of the exchange. The advantage of using a hardware wallet for altcoins is that you can access it without requiring an internet connection.
A hardware wallet is a tangible device that usually comes with an in-built operating system. Its easy-to-use interface ensures that you can operate the device without requiring too much technical knowledge. All you have to do is enter a secret pin to access the wallet. That doesn’t mean you can’t connect the wallet to the internet. You can do so by using your computer’s or laptop’s Bluetooth or USB port.
Features to look for in a hardware wallet
If you are ready to sign up for a hardware wallet, it’s wise to know the best security features that the wallet should have. According to Medium.com, hardware wallets should have the following qualities:
- Easy-to-use interface
- 2-factor authentication
- PIN to access
- Compatibility with other hardware and online wallets
- Should support a variety of coins
Why are hardware wallets beneficial for altcoins?
Crypto exchanges are not banking institutions that are liable for losses that take place without your knowledge. For example, suppose you want to send LTC to a Bitfinex account from a Bitstamp account. The Bitstamp account will send your money to two financial institutions, while the exchange may consider one of the transactions as void. Sure, it’s a mistake made by the exchange, and you have every right to contact the customer service team to get your money back. The only problem with this system is it takes time to sort things out.
You may have other things to do during that time. And not to mention the hackers who wait for a minor slip up to empty your account. Imagine losing 500 altcoins in one shot because of a weak password that the hackers could figure out.
That’s why it is better not to have altcoins in your wallet. Instead, sign up for a hardware wallet to keep your crypto exchange account safe from hackers. These wallets are compatible with various operating systems. You can connect them to buy or sell altcoins from anywhere you want.