Cryptocurrency traders and investors profit from the volatility of cryptocurrencies. Frequent price fluctuations open the space for generating income based on skilful price prediction, deep analysis, and quick decision-making.
Crypto investors need a place to keep their savings. Here are some options to store coins:
- Cold wallets.
- Hot wallets.
A hot wallet is a way to hold coins online. It may be an exchange wallet or a cloud. This option is suitable for often funds transactions. It also can be a cryptocurrency trading platform’s wallet (for example, Binance or WhiteBIT wallet).
Cold wallets are offline storage, like ledgers or USBs. In other words, not accessible to third parties and not connected to the network. It is the storage for long-term holding crypto when cryptocurrencies are bought and not sold for a long time.
Cryptocurrency Exchange Storage
The option of keeping coins in a cryptocurrency exchange wallet has one crucial thing – a private key does not belong to a user 100%, for it is stored on the platform. Therefore, the responsibility for the security of the coins is divided between the client and the crypto exchange.
Exchange wallets are the best option if you are an active trader conducting many daily transactions. Large amounts of cryptocurrencies are typically kept in offline storage, while small amounts are traded via a hot wallet.
Another option for storing your crypto is the WhiteBIT wallet. It keeps 96% of users’ investments offline, while the remaining 4% is actively traded online. It is an excellent alternative to ensure the protection of clients’ coins.
Holding their funds in crypto exchange wallets, clients use all the tools of the cryptocurrency exchange platform, trade quickly, and react to all market movements. Online wallets enable intensive intraday trading, scalping, etc. Besides, such wallets can be used on a smartphone, allowing trading on the go.