How do I keep my cryptocurrency secure? Wallets 101

Note that this article assumes that you have already purchased your cryptocurrency and want to know more about wallets

Once you have bought your cryptocurrency/cryptoasset, it will be sitting in a wallet. All wallets are specific to the type of cryptocurrency that it is. Note that you cannot store different types of coins in the same wallet (e.g. Ethereum cannot be stored in a Bitcoin wallet).

Most exchanges do have their own web wallets but leaving it in these wallets can be risky, I wouldn’t leave anything that you are not actively trading in these wallets. If the site/exchange goes down for whatever reason, your funds will more than likely go too. It can happen, see https://en.wikipedia.org/wiki/Mt._Gox

There's a few options what to do with your crypto below:

You can visit the website of the crypto that you hold for more information.
e.g. if you hold NEO, their site lists a range of wallets you can use to store your crypto (like Neon Wallet).

There are some desktop software wallets which can store multiple cryptocurrencies like Exodus (https://www.exodus.io/) or Jaxx (https://jaxx.io/)

While these wallets are considered safer than leaving them online on an exchange, they are still vulnerable to hacks.

Address/Public Key

All wallets will have a public key which is like the postal address of your home. It is the link you provide to receive funds into that wallet, It is safe to be seen by everyone and shows the transactions on the blockchain.

As with all new wallets, make sure you test the address and send a small amount over each time to ensure the process works, before sending the full amount. The wallets must be compatible, Bitcoin wallets can only send to Bitcoin wallets, Neo wallets to Neo wallets, etc.

The exception to this is the Ethereum wallets which can hold all the ERC20 Tokens. ERC20 Tokens are the tokens which were developed based on the Etherum Platform. If you look at the public address for these tokens you’d notice that they generally will be the same as your Ethereum address. A list of ERC20 tokens can be found here https://etherscan.io/tokens.

My address keeps changing!
Note that your address may change everytime it receives funds as a way of keeping your balance private such that it is harder for someone to find out how much total balance you have. Don't worry if you sent to your old balance, you can use any of the previously generated addresses to receive funds anytime without any issue. I do recommend you check your address and use your new addresses for receiving payments for privacy reasons.

I transferred some funds but they aren't appearing!
Funds take time to transfer, someones from a few seconds to a few hours. These need to be verified and it's not always instant from wallet to wallet. That is why I recommend that you send a small amount first to ensure it works before sending the full amount.
You can track transactions are websites such as https://etherscan.io/ or https://bitcoincash.blockexplorer.com/

Private Keys

Private keys are like the keys to your house, they are used to access, manage and send your crypto assets.
THEY ARE EXTREMELY IMPORTANT! YOU MUST BACK UP YOUR PRIVATE KEYS. Write it down with pen and paper or copy and pasting it to a USB as a text file.

You should NEVER share or give anyone access to your private key, this is handing them your money. They will have full access to your crypto and can do whatever they wish with it.
If you lose your private key you might lose your money forever.

Alternatively, there are also paper wallets which are codes with all of your information listed that you can print off and keep safe until you want to access your funds later again online. These are very safe but can be inconvenient if you want to move your funds or if you lose your special valuable peice of paper! They are generally better for long term holdings and you would generate a new wallet each time.

I recommend that once you have a decent amount of money in your wallet, that you invest in a hardware wallet.

Hardware Wallets

The safest way to store your crypto is to buy a hardware wallet. These are basically a USB like stick, which comes pre-loaded with software and encryption to store all of your crypto offline. They are pin protected and hide your private key, even from you. If they are damaged, stolen, lost, you can still get your cryptocurrency back provided you keep your recovery settings handy.

Make sure you write down your backup phrase that comes with your device. Below are the most common and popular hardware wallets. Only buy directly from their website, or their list of supported resellers.

• Ledger Nano S - https://www.ledgerwallet.com/
• Trezor - https://trezor.io/
• Keepkey - https://www.keepkey.com/

Disclaimer: All information presented here is based on my personal opinion and these services may change overtime. I am not a financial advisor, just an average joe talking about Cryptocurrency. Please check each website for their individual information, any fees and all details before signing up and using their services. There are risks involved in trading Cryptocurrency & by doing so you accept those risks, do not invest anything that you are not willing to lose.