Proper storage of cryptocurrency is critical for protecting assets from theft and loss. Wallets, both hardware and software, offer varying levels of security and accessibility.

Where is the best place to keep your crypto?

When it comes to storing cryptocurrency, security is paramount. Understanding your storage options is crucial in making an informed decision about where to keep your crypto. These options include:

• Centralized exchanges

• Software (hot) wallets

• Hardware (cold) wallets

• Multisignature wallets

Securing your cryptocurrency is crucial to avoid potential losses, and choosing the right storage solution is key for any crypto holder. Different methods offer varying levels of security and convenience.

In this guide, we’ll review the pros and cons of crypto storage options, including centralized exchanges, software wallets, hardware wallets, and multisignature wallets, to help you find the best solution for securely storing your crypto.

Crypto exchanges to store crypto

Exchanges are a convenient and easy-to-use way to store your cryptocurrency, especially if you are actively trading or just beginning with crypto. However, they are also among the least secure options. Exchanges hold onto the crypto for all their users, making them a prime target for hackers.

In 2019, Binance, one of the world’s largest exchanges, was hacked for 7,000 Bitcoin (about $40 million). While some exchanges have insurance against the loss of crypto assets, not all do, and they are not generally subject to the same protections as traditional financial institutions.

Our expert picks of the best crypto exchange include:

• BYDFi

• Coinbase

• Crypto.com

• eToro

• Gemini

Software wallets

For desktop and mobile, software (or “hot”) crypto wallets offer a more secure option than exchanges. While they are only as safe as your device, they eliminate the risk of exchange hacks or mismanagement of your crypto.

With software wallets, you actually control your own crypto and can manage it directly on chain. Our expert picks of the best crypto wallets include:

• Coinbase

• MetaMask

• Trust Wallet

Hardware wallets to store your crypto

Hardware (or “cold”) crypto wallets are considered the safest and thus best place to store crypto long-term. Hardware crypto wallets store private keys offline, which makes it next to impossible for bad actors like hackers to access them without custody of the physical device, typically no larger than a familiar USB stick.

Our expert picks of the best crypto wallets include:

Multi Signature wallets

Multisignature wallets require more than one signature for transactions to be approved, adding an additional layer of security.

While they are not suitable for active, everyday use, they are ideal for scenarios where multiple stakeholders need to sign off on transactions. Popular multisignature wallets include: