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How NOT to lose your cryptos on an exchange…

by , 30 March 2021
How NOT to lose your cryptos on an exchange…
It was from SA-based crypto exchange iCE3x. Founded in 2013, iCE3x is one of the oldest crypto exchanges in SA and has roughly 80,000 customers.

The company announced it had suspended all trading and deposits on the platform after discovering “discrepancies in the balances pertaining to bitcoin and litecoin”.

This news alarmed the crypto community - as expected. But this is not first crypto exchange to experience these sort of problems.

More importantly, this isn't the first time crypto investors couldn't withdraw their profits. And it probably won't be the last.

So what can you do to avoid this type of situation?

I'm going to show…
Goldman Sachs is has joined the Crypto fan club
Now think about this...
As soon as this announcement went public, our systems began pinging buy signals on a whle bunch of crypto alt coins.
In particular three of them are giving a HUGE buy signal - and if you want a shot at gains up to 20X BIGGER than Bitcoin in the coming months...
Don’t leave your cryptos on an exchange!
A wallet on an exchange, such as Luno, Ice3x, Bittrex or Binance provides you with the lowest level of security.
The thing is, you will need to have your cryptos on here at some point because this is where you buy and trade them.
The advantages of an exchange are that they’re easy to use. Basically, all you need to create an account is a working email address. And just like email, you can access it anywhere. All you need is internet.
In addition, you can buy and sell cryptos instantly. Some exchanges even have apps you can download to make buying and selling even easier and quicker.
But exchanges do come with disadvantages…
Exchanges can be hacked. And when they get hacked, you can lose all your crypto. This also means they ultimately have control over your cryptos, and not you.
Another disadvantage is that exchanges are constantly targeted by phishing scams. And there are countless people who fall for them.
The point is, only keep the cryptos you’re actively trading on your exchange wallet.
Otherwise keep the rest in a safer wallet.
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Consider using a Hot/Cold or Hardware wallet
Simply, hot wallets are connected to the internet. Whilst, a cold wallet is stored on a device that isn’t connected to the internet.
So for instance, if you download your wallet file from myetherwallet.com and store it on a USB stick or memory card, this would then be a cold wallet. The USB stick isn’t an internet enabled device.
Cold wallets have lots of advantages like they’re…
Very secure – it can only be hacked if someone gains access to the physical device.
Easy to hide and safely store – you can store them in a safe, just like money or gold.
Easy to copy – just copy the wallet file onto another USB and store it at another location.
Easy to encrypt – you can encrypt the USB stick for an extra layer of protection.
Cheap – you can get a good quality USB stick at many stores for R250-R500
One of the major disadvantages of cold wallets is that they’re easy to lose. How many times have you lost a USB?
If you do make copies, you must keep tabs on them all.
Then, cold wallets are slower to use than a hot wallet, because you need to plug in your USB and load your wallet every time you use it.
The best wallet in my opinion, is the hardware wallet.
These are a more sophisticated type of cold wallet. They are essentially tiny computers cased inside USB sticks.
If you’ve ever heard of Trezor or Ledger, then you’ll know what I’m talking about. They’re the leading companies in this field.
Hardware wallets give you all the advantages of a cold wallet or paper wallet, with the speed of a desktop or mobile wallet. They are also much more secure than any of the other types of wallet and very easy to use.
But they cost around between R1,500 and R2,000.
Your private keys are stored and encrypted on the device. So no one can see them. Even the computer you connect your wallet to when you use it to trade can’t see them. So in theory, hardware wallets cannot be hacked.
And if you lose it, or even if someone steals it, it’s not the end of the world.
If someone finds your Trezor or Ledger wallet they still need your pin code to use it. After a few wrong attempts they are locked out for years. This means they can’t be cracked by a password cracker.
So if you’re fully invested in the crypto market, then a hardware wallet is the best way to keep your cryptos safe.
See you next week.
Joshua Benton,
Managing Editor, The South African Investor

How NOT to lose your cryptos on an exchange…
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