Holding your cryptocurrencies on an exchange for the long term is probably the worst of all options. Personally, I only hold smaller assets of cryptocurrencies on exchanges. Most crypto exchanges have been robbed in the past, and countries like North Korea are working hard to repeat that. So if your bitcoin disappears, for example, there is no way to stop, cancel, or reverse the transaction. That’s why I recommend keeping only the cryptocurrencies you’re currently trading on exchanges. In fact, you practically do not own bitcoin or other cryptocurrencies operating on the blockchain unless you have private keys to them, and a centralized solution of a well-secured exchange will not provide that. Another disadvantage is a certain loss of anonymity when holding digital currencies on exchanges.
Binance – for 20% discount on half heels link here
Coinbase – for $10 in bitcoin link here
Change invest – link here
8.2 Savings Accounts
This is a slightly better version of the exchanges because you get Bitcoins or other cryptos at least at interest however, it is still a centralized solution. Personally, I hold about 20% of my portfolio in a Celsius savings account. Savings accounts have the advantage that cryptos multiply without your intervention. The downside is that they are still centralized solutions.
Celsius is giving new customers a $30 bitcoin bonus after signing up and depositing $200 in cryptocurrency – link for bonus here.
8.3 Software Wallets
The first of the solutions that offers private keys, and when your crypt tells you sir. Some cryptocurrency wallets that use proof of stake transaction verification can even ..propagate your crypt”. I consider the most secure and free solution to be a software wallet Exodus. It is available for download on the App store and google play.
Software wallets in general have one single drawback. They are not nearly as secure as hardware wallets. Ideally, no computer should know your private key. There’s always the risk of being hacked. Of course, it depends on how much money you store in cryptocurrencies and how much they mean to you.
Software wallets have a number of advantages as well. The main one I see is the ease of use of the what-if app on your mobile phone or computer. For example, the Exodus wallet I recommend additionally allows stacking of certain coins and multiplying them. You simply lock up your coins, usually for 21 days, and they multiply with you. Software wallets are also free.
A special category of software wallets are the so-called DeFi wallets, where you essentially lend your cryptos to someone else at interest. Many crypto enthusiasts see a future in this principle, offering very interesting benefits. I would be rather cautious for now. The whole crypto world is in the wild west era and the world of decentralized finance is quite risky. If you don’t know exactly what you’re doing, you’re probably going to lose a lot of money.
8.4 Hardware wallets
If you’re serious about Bitcoin and other cryptocurrencies, I strongly recommend getting a hardware wallet that will securely hold cryptocurrencies even in the billions of dollars.
Two manufacturers of HW wallets for storing cryptocurrencies are coming into consideration.
- Vault. This is a crypto wallet from a Czech manufacturer, which the very principle of crypto wallets. In my opinion, it is the most secure way of storing cryptocurrencies, because it offers security in addition to the 24 word seed security in another word. Currently, there are 2 types of Trezor wallet.
Trezor One price approx. 1600 Kč
Safe T price approx. 4800 CZK
Which one you choose is basically up to you. The T safe is nicer, offers a touchscreen, supports more cryptocurrencies. It allows for shamir backup, which is simply splitting the seed into multiple parts. But I honestly don’t think three times the investment is worth it. It’s all about your choice.
You can find a guide to both wallets and a comparison from Kryptomates here.
- Ledger. The Ledger hardware wallet from the French manufacturer is a very good alternative to Safe. It’s a matter of taste, but in my opinion it’s a bit more handsome. On the other hand, design is probably not the most important thing to expect from a cryptocurrency wallet.
Youtube tutorial on ledger S by Mirko here.
Where to buy hardware wallets:
Safe One price 1545Kč (49 EUR) official manufacturer site here.
Safe T price 4723 Kč (181 EUR) official manufacturer site here.
Ledger nano 1590 Kč na Alza.cz zde.