Crypto wallets: what you need to know

Crypto prices appear to be on an unstoppable upward trajectory. With Bitcoin and Ethereum hitting all-time highs again this month, more and more people are investing their money in digital currencies. And they have a plethora of options to keep their investments safe.

Cryptocurrencies are stored in what is called a wallet, which has a private key associated with it, similar to a password. The easiest way to get your coins into a wallet is on the cryptocurrency exchange you used to buy your currency (think Coinbase or Gemini). But more traditional companies, like PayPal and Robin Hood, have also added options to buy, sell and store cryptocurrencies.

Crypto owners who want complete control over their investments can also rely on digital wallets managed locally by software on the user’s own device. For an added layer of security, you can consider using what’s called a cold wallet, which is basically a local device like a hard drive that is not connected to the internet.

Companies like Safe and Ledger make special readers especially for cryptocurrency wallets. Companies claim that sensitive information is not exposed even when devices are connected to your computer (don’t lose the device or the key needed to access the data it contains). Watch the video above for a detailed look at how all of these options work.