Best Place to Store Crypto in 2024

Zac McClure
ByZac McClure, MBAReviewed byAlex MilesUpdated on July 2, 2024 · minute read
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  • The best place to store crypto long-term is typically a hardware or "cold" wallet, including our experts' top picks of the best places to store crypto: KeepKey, Ledger, and Trezor.

  • Identifying the best places to buy and store crypto requires an emphasis on security. Hardware wallets are usually considered the safest for long-term storage, while software wallets offer accessibility for everyday use with less security.

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

Ensuring the security of your cryptocurrency is vital to prevent potential losses, and selecting the appropriate storage solution is critical for any crypto holder. Each method provides varying levels of security and convenience.

In this guide, we'll explore the pros and cons of crypto storage solutions such as centralized exchanges, software wallets, hardware wallets, and multisignature wallets, helping you determine the best place to securely store 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:

  • Armory

  • Electrum

Best place to store crypto FAQs

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 for storing crypto. They 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.

What are the benefits of using a multisignature wallet for storing crypto?

A multisignature wallet provides enhanced security for your cryptocurrency by requiring multiple approvals before any transaction can be completed. This layer of protection serves to help prevent unauthorized access and theft, especially in scenarios involving multiple stakeholders. By distributing the approval process across several parties or devices, multisignature wallets ensure that no single point of failure can compromise your funds, making them an excellent choice for secure, long-term crypto storage.

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Zac McClure
Zac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.
Alex Miles
Reviewed byAlex MilesCo-Founder at TokenTax
Prior to TokenTax, Alex worked as a Product Designer at Dropbox and before that Readmill (acquired by Dropbox). He holds a BS in Digital Information Design - Interactive Media from Winthrop University.

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