Quick update: In 2024 alone, around $2.2 billion worth of cryptocurrency was lost to hacks and exploits. You might wonder, were the owners just careless, or were the hackers simply smarter? In reality, it’s a bit of both. When dealing with crypto, you have to stay one step ahead. Taking security lightly can put your entire assets at risk, because as cryptocurrencies become more popular, cybercriminals keep coming up with newer ways to steal them. That’s why now, more than ever, being extra careful isn’t just a choice, it’s a necessity.
Although simply leaving your crypto on an exchange or in a regular software wallet isn’t enough anymore. Investors now need stronger ways to keep their assets safe, ideally, somewhere hackers can’t reach at all. This is where Ellipal can really help: an offline cold wallet designed to protect your crypto from online threats, human mistakes, and even physical damage. In this blog, we’ll look at the most common issues people face when storing crypto and see why Ellipal offers a much safer solution.
The Common Issues Faced with Storing Crypto
Storing cryptocurrency safely isn’t as easy as it sounds. Here are the main problems crypto holders often face:
Security Risks
Exchange hacks: Keeping crypto on exchanges might be convenient, but exchanges are common targets for hackers. If an exchange gets hacked, you could lose your funds forever.
Hot wallet threats: Wallets connected to the internet (like apps on your phone or computer) can be attacked by malware or phishing scams.
Cold wallet risks: Hardware wallets or paper wallets are safer from online attacks but can still be lost, stolen, or damaged (like by fire or water).
Phishing: Scammers often trick users into revealing private keys or recovery phrases through fake websites or emails.
Losing Access
Lost keys or seed phrases: If you lose your private key or recovery phrase, you lose your crypto permanently; there’s no way to reset it.
Bad backup habits: Not backing up your wallet properly or keeping backups in unsafe places (like on the cloud or an unencrypted file) can also lead to losing access.
User Mistakes
Sending to the wrong address: Once you send crypto to the wrong address, you can’t get it back.
Old or unsafe software: Using outdated wallet software or wallets known to have security issues puts your funds at risk.
Limited wallet support: Some wallets don’t support every type of cryptocurrency. If you send an unsupported coin, you could lose it.
Device Problems
Broken devices: If your phone, USB stick, or hardware wallet gets lost or damaged and you don’t have a backup, you could lose access to your crypto.
Corrupt files: Software wallets can sometimes get corrupted, which may cause you to lose your funds if you don’t have backups.
Relying on Others
Custodial wallets: Letting a third party (like an exchange) hold your crypto means trusting them completely. If they get hacked, mismanage funds, or go bankrupt, your assets could be gone.
Regulatory freezes: Governments can freeze or limit withdrawals from centralized platforms.
Physical and Life Risks
Not planning ahead: If no one you trust knows how to access your crypto, it might become impossible to recover after your death.
Which Wallet Offers the Best Security?
When it comes to storing cryptocurrency, there isn’t just one type of wallet. Each type has its own pros and cons, but not all of them offer the same level of security. Let’s take a quick look at the main options:
Hot Wallets (Online Wallets)
Pros: These are wallets connected to the internet, such as apps on your phone, desktop wallets, or browser extensions. They’re easy to use, perfect for daily transactions.
Cons: Because they’re always online, they’re vulnerable to hacks, malware, and phishing scams. Even careful users can become victims if a hacker finds a loophole.
Custodial Wallets (Exchange Wallets)
Pros: These wallets are provided by crypto exchanges. They’re convenient because you don’t have to manage your private keys yourself.
Cons: You’re trusting a third party to keep your assets safe. If the exchange is hacked or faces legal issues, your crypto could be lost or frozen.
Paper Wallets
Pros: A paper wallet means printing your private key or seed phrase on paper and storing it somewhere safe. It’s completely offline, which protects it from online attacks.
Cons: It’s easy to lose or accidentally show to someone else. Once it’s gone, your crypto is gone too.
Cold Wallets (Hardware Wallets)
Cold wallets are physical devices, like Ellipal, that keep your private keys completely offline. They’re only connected to a computer or phone when you’re signing a transaction, and the best ones, like Ellipal, don’t even connect directly; they use QR codes to stay “air-gapped.”
Why Cold Wallets Are Better Than The Rest
Here are the points explaining why cold wallets are a better option:
- They protect you from online attacks.
- No need to trust a third party like an exchange.
- You can write down a recovery phrase and store it securely.
- Modern cold wallets are built to detect and resist physical tampering.
- Perfect if you don’t need to move coins daily and want maximum security.
How Ellipal Works
Ellipal is more than just a wallet; it’s a complete system that makes keeping your crypto safe. The Ellipal app lets you check your balance, get price alerts, and sign transactions securely, so your private keys never touch the internet. It supports thousands of different coins and tokens, so you can manage everything in one place without switching wallets.
To keep your crypto even safer, Ellipal offers hardware wallets like the Ellipal Titan, which stay completely offline and come in a strong, tamper-proof case. They also have accessories like the Ellipal Mnemonic Metal, which protects your recovery phrases from fire and water.
Keeping your crypto safe these days is almost like walking on fire; you’re risking millions in assets on a single mistake. That’s why it’s extremely important to choose a wallet that offers better security. Ellipal provides a cold wallet that keeps your crypto completely offline, so you won’t have to worry about hacks, scams, or other dangers. Ready to protect your crypto the smart way? Explore Ellipal today and keep your assets truly safe.
Ellipal runs an affiliate program, and we are affiliated with them. As an affiliate partner, I am excited to share this information with you. To get a discount, click on this link and help us earn a small commission at no additional cost to you.
Stay tuned to Virtual Codes Vault for all crypto security options.
