It's Not the Type of Wallet, It's How You Use Tt

By Cryptopsycho21 | Cryptopsycho21 | 17 Aug 2020


I think it's safe to say that we have all learned one fundamental concept, "not your keys, not your coins."  If you are a long time, hardcore crypto expert, this was like gospel.  If you are on the noob side of the coin, it's in all the educational videos.  While this is still true, I have never really considered getting a cold wallet very much.  I started investing in crypto and doing my research at the beginning of the COVID situation.  I began with Blockgeeks, Crypto Casey, and Coinbase.  They were all preaching the importance of a cold wallet since anything left on the exchange was "vulnerable."  Either that or they get a kickback from wallet companies.  Maybe both.

When I chose Binance and Coinbase to be my leading exchanges, I looked into their security policy.  They are both covered for hacking and your coins when they are in their possession, to a point.  They don't cover screw-ups and hacks on your end.  This is why treating your computer and phone as a physical wallet (with your cash) is so important.  Anything that compromises your security compromises your coins, ID, and so much more.

This is why the "seed phrase" for your account is good as gold.  But people are stupid as bricks when it comes to doing little things for their safety.  How many reading this didn't think that the seed phase was critical when they got their first wallet or account?  I was one.  I think I took a screenshot (which it said not to do) instead of walking across the room to get a piece of paper- too many words to fit on my hand.  It was later that I started watching videos and realizing what a dangerous thing I was doing.

That is one of the reasons that I never got a cold wallet.  If I was careless enough to skip one of the most essential parts of cryptosecurity, what's to stop me from losing a cold wallet like misplacing my car keys?  In the beginning, I felt unsure about it, even though I knew it would be safe as long as I kept my security up to date: shields up, yellow alert.

I felt better after reading an article about Changpeng Zhao advocating for uses to store their coins on a trusted centralized exchange.  His case in point was last year's Binance hacking.  Even though hackers got through all the security, and manage to steal coins, the losses were covered by Binance, and the investors lost nothing.  So taking a big loss for their investors shows a lot.  Of course, there must be a limit.

While there are many good reasons to keep your investments off the exchanges as well.  I think that for myself, I'll diversify.  When I get organized enough and grow up, I'll start hodling coins on a cold wallet.  If the coins are stakable, I'll stake them on a trusted secure sight like Binance or Coinbase.  I should also mention that I do use Atomic wallet because it's secure and has excellent staking rates. 

I have included links to the mentioned centralized sites and Atomic Wallet if you are interested.  These are my referrer links.  If you don't want to use me as a referrer, you can always click on the link and then click on the home.  It will take you to the same great sites.  If I missed anything, please let me know, or if you have any suggestions on this topic, I'm all eyes.

https://blockgeeks.com/

https://www.binance.us/?ref=35149030

https://coinbase.com/earn/eos/invite/c54zpyd1

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Cryptopsycho21
Cryptopsycho21

Psycho about crypto


Cryptopsycho21
Cryptopsycho21

Thought-provoking points of view from more of a psychological area that encourage feedback and criticism.

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