For the past couple of years, more and more investors have begun to take notice of cryptocurrencies like bitcoin. Today, more than 700 different digital currencies exist, with hundreds of millions of dollars worth of these currencies in circulation. But with more investors being attracted to this opportunity to be early adopters of this technology, one group has taken it upon themselves to identify and protect the best ways of storing this cryptocurrency.
Ethereum, for instance, has been gaining more attention in recent months, with it trading at approximately $232 USD per coin at the time of writing this. Ethereum’s founder, Vitalik Buterin, set up the Ethereum Foundation and formed the Ethereum Virtual Machine in 2015, but also devised a way of storing its value called “ether.” Now, ether is the fuel used to keep the Ethereum Virtual Machine running and it is “mined” by users of the Ethereum Blockchain.
Many people are buying cryptocurrency in hopes that this investment will increase in value.
So, what makes ether different than bitcoin or any other currency? Simply put, the total value of ether is far larger than any other cryptocurrency, as well as any fiat currency, in the world. That’s why investors have started to invest in ether as a form of investment, with some even going as far as to buy real estate in countries like Canada, Germany, and the UK with Ethereum, which can then be converted back to Ethereum for profit. As you can imagine, some homeowners are a bit upset to find out that Ethereum was essentially mined from their property.
With digital currency becoming more and more popular, and with the rise in prices of cryptocurrencies across the board, having the ability to store and protect your digital currency shouldn’t be taken lightly. And there are lots of different options available for securing this digital money that will make your life easier if you decide to invest in ether.
Two Ways of Storing Crypto.
The first way to store Crypto is simply to keep it in a hardware wallet like the Ledger Nano S. This wallet is small, sleek, and provides great protection to your digital currency, with built-in security features to ensure that your private keys are never compromised. The Nano S comes in three different sizes, from a quarter of an inch to 4.85 inches in length.
The other option for storing ether is called “cold storage.” A “cold storage” wallet is essentially the same as the Ledger Nano S, but this wallet contains ether on a computer, where it will be stored until you want to withdraw or spend it. When you purchase ether, you will have the option to purchase and store it in either cold storage or in hardware wallets, such as the Ledger Nano S. Cold storage is preferable if you’re worried about your computer being hacked and your ether stolen.
For the most comprehensive guides on how to store bitcoin, other types of cryptocurrency, and more, check out our new ebook, “How to Store Bitcoin, Litecoin, and Other Cryptocurrencies,” or download our iOS app, “Bitcoin Wallet.”