Best Place to Store Crypto in 2024

When storing your cryptocurrency, security is essential. Failing to practice secure crypto storage can result in losing your funds. Knowing where to store crypto requires an understanding of your options, which include:

• Centralized exchanges

• Software (hot) wallets

• Hardware (cold) wallets

• Multisignature wallets

Securing your cryptocurrency is essential to prevent loss, and choosing the right storage option is crucial for any crypto holder. Each storage method offers different levels of security and convenience, from centralized exchanges to hardware wallets.

In this article, we'll explore the pros and cons of various crypto storage solutions, including centralized exchanges, software wallets, hardware wallets, and multisignature wallets, to help you find the best place to keep your crypto safe.

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

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 (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:

• BitBox

• Ledger

• Trezor

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:

• Armory

• Electrum

Here are answers to common questions about the best place to store crypto, where to store crypto, and the best places to buy and store crypto.

Which is the best wallet to store crypto?

This depends on your needs and preferences. Hardware wallets are considered the most secure since they store private keys offline. However, software wallets can be secure if you take the necessary precautions, such as using strong passwords and enabling two-factor authentication.

Where is the safest place to buy and hold crypto?

The safest place to buy crypto is a centralized exchange. Look for credible crypto exchanges with a track record of protecting their users' assets. For the best possible security if you purchase crypto on an exchange, move it to a hardware wallet under your own custody and only hold crypto on an exchange when you’re prepared to sell. Exchanges can always be hacked or unexpectedly collapse, as we saw with FTX in 2022.

What's the safest device to store your crypto?

Hardware wallets are considered the safest device to store your crypto. Such devices store private keys offline, which means they are virtually immune to hacking attempts. It's important to choose a reputable hardware wallet and keep it in a safe place.

Remember always to back up your wallets and educate yourself on best security practices wherever you buy and store your crypto.