There is a lot of scamming, hacking in all things cryptocurrency related. Deciding where to store your cryptocurrency safely is very important. The security of the personal data being entered is a priority to keep your funds safe. On the other hand, when a user is primarily concerned about anonymity, and the less data entered for verification, the higher the risks.

Let’s figure out where the best place to store cryptocurrency is in 2022. Essentially, it’s still stored on a blockchain, and the services to interact with your cryptocurrency assets are called “wallets”. They contain passwords and keys to access your crypto assets.

Which wallets to store cryptocurrency in: the main types of wallets

1. Cold hardware 

A crypto wallet is not connected to the internet, but it does not work through an application, but is a flash drive on which all the keys are stored. It is connected to a computer via USB to make a financial transaction. The fact of the transaction must be confirmed by pressing a button on the device itself.

A hardware wallet guarantees the safety of private keys even when connected to an infected PC. It is the least risky way to store cryptocurrency funds. The most popular hardware wallets in 2022 are Ledger and Safepal.

2. Cold software (non-custodial)

In fact, this is also a cold wallet usually disconnected from the internet, which ensures the security of the stored funds. They involve more complex authorisation and are usually used to store medium to large amounts of cryptocurrency, without fear of hacking.

You are in complete control of your assets, since the keys are held directly by you. To interact with your financial resources, you use special programs or applications, if necessary.

3. Hot (custodial)

Here you entrust third parties (exchanges or services) with your personal data. There are simple instructions to sign up. But if the exchange or the developer of the cryptocurrency wallet turns out to be a scam, you will hardly be able to influence the situation here. There are a lot of such cases.

This type of wallet is always connected to the Internet, it is used to send or receive money, and it is not a good idea to keep large amounts of money in it. The safest exchanges today are Binance, Bybit, Bitget, Huobi and FTX.

Where is it safe to store cryptocurrency?

You just need to be aware of your goals and objectives. After that, it will be easier for you to decide which cryptocurrency wallet to use to save your purchased crypto.

A hardware wallet is considered to be the safest way to store large amounts of money for a long time, but you can also lose it.

A software wallet is a handy way to store small amounts that you use periodically.

Hot — ideal for buying and selling transactions, making frequent transactions on exchanges. But you should not keep large sums in it.

If you have already decided on the type of wallet, we advise you to read article → Top best crypto wallets for storing cryptocurrency, so that you can finally decide on your choice