A lot has happened in the past month to the crypto space. The collapse of the second largest crypto exchange in the world (FTX) will have ramifications which will be felt for months to come. If you are a holder of any cryptocurrency, what should you do?
Almost everyone who bought any kind of cryptocurrency nowadays would have gotten it from a crypto exchange like Binance or FTX. For convenience and to avail of attractive interest rates, some people leave their crypto in the exchange where they bought them. At first glance, this looks like the right thing to do. However, history has shown us that this is extremely dangerous.
Since the birth of cryptocurrencies, we have seen exchanges being subject to numerous scams, hacks, fraud and mismanagement. Depending on the severity of the incident, investors have lost their investments at varying degrees. Because of this, people have started to lose faith in crypto in general but is this correct? Is there a way to ensure the safety of your crypto funds?
Actually, the best way to secure your funds is to put them into a hardware wallet that you own. There are a few advantages to this that not everyone may be aware of. These advantages are:
- You hold your own keys – not the exchange. So you are not affected by whatever happens to your exchange
- Your funds are secure even if your computer gets malware/virus
- If someone gets your HW wallet, they still won’t be able to access your funds unless they know your PIN.
- The contents of your HW wallet will reset if the wrong PIN was entered 3 times so you are safe from unauthorised access.
- If your HW wallet is lost or spoiled, just get a new one and restore your keys to it to access the funds
With hardware wallets, you should keep your recovery words written manually in a piece of paper and stored securely. If you are now convinced to get a hardware wallet, which HW wallet should you choose?
We highly recommend to get hardware wallets from Ledger. Ledger is the leading supplier of hardware wallets. If you find our content useful, please kindly use our purchase link below when you shop. https://shop.ledger.com/?r=286f438d1add
We will get a small amount if you use this link so we appreciate your support. Note that we are recommending Ledger because we truly believe in their reliability and not because we are affiliated with them.
In other news, we have just sent our December donation to Children’s Wishing Well:
WISH Pool is the creator of Cardano SPOT Check, an online resource for Cardano Stake Pool Operators for maintaining their nodes. We were a recipient of the IOG delegation in 2021 and the Cardano Foundation delegation in 2022. If you like this article, we greatly appreciate if you will delegate hyour ADA to WISH Pool. You will be earning interest rewards while helping the lives of disadvantaged children. This is because we pledge to give at least 10% of our own profit to educational charities so that successful students can help get their families out of poverty. Let’s help grow the community together!