The ABCs of cryptocurrency continued
C as in Cold Storage
PURA Vida everyone! Today we are continuing with our cryptocurrency ABCs with the letter C. As the world of cryptocurrency has just witnessed another massive incident of theft at a Japanese exchange that shows the vulnerabilities of online trading of this asset, today seems perfect to talk about storing your cryptocurrency safely. So, C as in “cold storage” will become one of the very important terms in cryptocurrency.
Cold storage is a term you should always bear in mind. Maybe the most important term. We can never stress enough just how important it is to safeguard your PURA properly! In essence, this topic is so crucial that we are going to keep adding more information on it on the blog coming up.
How to keep your PURA safe
But for now, let’s look at the basics you need to be aware of:
- Make sure protect your private key. Never share your private keys for your cryptocurrency with anyone. If you do share your private key with someone, it gives them full access to your funds.
- Do not use unsecured online web wallets that keep your private key on their servers. Also, do not use a wallet app – this means do not store bigger values on hot wallets like apps on mobile phones that have an internet connection.
- Cold storage is it. This is the way we recommend you store your PURA – in cold storage. Cold storage means keeping your cryptocurrency offline in a hardware wallet. Hardware wallets cannot be attacked by computer viruses that attack software wallets. A hardware wallet is a small hard drive that stores your cryptocurrency wallet information, such as a USB stick. Please use new and unused USB sticks only for this purpose. Also, for that reason, you should never buy any cold wallets second-hand. At the moment, there is no officially certified cold storage device endorsed by PURA available. Make sure to keep your PURA in cold storage – this way your cryptocurrency assets are not present online. The only amount you need to keep online is the amount you need to cover transactions you anticipate.
How to turn your PURA wallet into cold storage
- Find your private key in the hidden Windows file “App Data->PURA”, on Mac in the hidden file “Library/”Application Support -> PURA”.
- Secure your private key (PURA folder) on a cold storage device like a USB Stick.
- We advise you to make several copies of your USB Stick and don’t forget to delete your private key from your internet-connected device (your computer) after securing your private key(s).
Happy cold storage everyone and keep your cryptocurrencies safe and sound!