Rule #1 of Investing in Cryptocurrency: Offline Wallets
I have read too many stories of people losing endless amounts of money by leaving their cryptocurrency on an exchange or in an online wallet. Secure your cryptocurrency off exchanges and offline! The best way to store your cryptocurrency is on a dedicated drive that is not connected to the internet and has its own secure wallet built in.
There are two ways to do this:
1) Hardware Wallets
2) Paper Wallets
Let’s first discuss hardware wallets. The two most popular brands of cryptocurrency wallets are Ledger and Trezor. From my extensive research, I found the overall reviews, usability, and security to favor the Ledger Nano S hardware wallet.
One very important note when buying your hardware wallet… DON’T buy it on Amazon, eBay or any third-party seller. Get it directly from the manufacturer! This will ensure no third party has “hacked” it. Better safe than sorry. When it comes to securing your cryptocurrency, you want the BEST!
How to Use your Ledger Nano S Cryptocurrency Hardware Wallet
Hardware VS Paper Wallet
This is no competition for me… my hardware wallet, Ledger Nano S wins hands down everytime! BUT if you are new to crypto and not investing much… I get it. Nobdy wants to drop $100 on a wallet that is only storing $100 worth of coins! So my rule of thumb is if you plan to invest over $1000 in crypto, you MUST buy a hardware wallet for storage! Anything lower and storing on a paper wallet will suffice.