Why you should store your crypto on multiple wallets.
Some of you might be storing all your crypto on a single wallet address. Some people might say it is more convenient to store all your crypto on one address but they are taking a big risk when doing that. It might be a bad idea due to privacy issues and hacking issues.
The first reason you should store your crypto on multiple addresses/wallets is if you have a lot of cryptocurrency. As you may know anyone can see a crypto addresses activity on the blockchain. If you have a big balance then your address will be more noticeable. I'm sure you have seen the whale alerts on twitter. It is drawing unnecessary attention to yourself when you store your stack in one address. This can attract criminals to target you. Smaller transactions from multiple wallets can help you fly under the radar.
This brings me to my second point. It is more secure if you store your crypto on multiple addresses or wallets. If someone were to find out your private key maybe due to you taking a picture of it or getting it stolen. Then the attacker would have access to all your funds. If your crypto is stored on multiple wallets and addresses then if they find one of your private keys you only have a portion of your funds at risk. Maybe your phone, tablet or computer is stolen. You don't want the attacker to have everything. Or imagine if someone invades your home and forces you to give up your private key. While that may seems extreme, it could happen. You would want to have multiple wallets so you are not forced to give up your entire stack.
Another way having your crypto in multiple locations helps you is if you forget or lose your private key. As you may know it takes a lot of responsibility to "be your own bank". You have to take proper care to remember and store your private keys. For example lets say you have your wallet address written on a piece of paper near your computer. You take a sip of coffee and set your mug down. Then Boom! It spills everywhere and soaks the paper with your private key. If you don't have multiple wallets and addresses then your crypto would be unrecoverable. All kinds of unfortunate events can happen which can cause you to lose your private key. It is better to be safe then sorry.
After reading this article some people may be wondering, What is the best way to store my crypto? My advice would be to use a "cold storage" method such as hardware wallets or paper wallets. You can use a combination of both to store your crypto on multiple addresses. Some good hardware wallets I would recommend are KeepKey, Trezor, and Ledger.
In conclusion it is best practice to keep your crypto on multiple wallets and addresses because you will have more privacy and it offers protection to hacking, theft, and irresponsibility. I hope you use this knowledge to help keep you safe. Happy investing!
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