CryptoVault is an Official Reseller for Tangem, Ledger, Trezor and SafePal Hardware Wallets in South Africa

Secure your Digital Assets in a Hardware wallet.

With the increased interest in cryptocurrencies and digital assets like NFTs there has been an increase in cyber theft in the form of hacks and online scams. The more money that flows into the crypto space the more temptation scammers and cyber thieves have to act. There are two types of wallets that one can store their digital assets on, one is a custodial wallet and the other a noncustodial wallet. 

Custodial wallets are third party services such as brokerage services or exchanges (eg. Luno, VALR and Binance) who have control of your assets. This is the most popular, easiest and most widely used method of storing cryptocurrencies because users simply leave their crypto on the exchange on which it was bought. In this way you can use the exchange as custodial service for your crypto, however your digital assets will be subject to counterparty risk. This means if the exchange on which you keep your crypto goes bankrupt, gets hacked or is stolen from you may lose some or all of your crypto. This has happened before in 2014 when 850 000 bitcoin disappeared off the MT Gox exchange, many people lost all their bitcoin. More recently Celcius, a crypto exchange, froze all crypto withdrawals and transfers in a response to intense market conditions.

Noncustodial wallets can be broken down into two separate categories, namely software wallets and hardware wallets. Both the software and the hardware noncustodial wallets allow you to hold your own private keys which gives you full control of your digital assets. The most significant difference between a software and hardware wallet is that the software wallet is usually on a device which is connected to the internet. Software wallets are also called hotwallets and the crypto is stored in hot storage, this means the wallet is connected to the internet and the cryptocurrency network. In this way software wallets leave your private keys susceptible to hacks, unauthorized access and other vulnerabilities associated with systems which are connected to the internet. This could happen through malware, phishing, phone theft or accidentally downloading a malicious wallet. 

Fortunately hardware wallets make it nearly impossible for bad actors to get your digital assets and cryptocurrencies as they are kept in cold storage. These wallets are specifically designed with simple functionality to avoid the potential of external hacks. Hardware wallest like Ledgers or Trezors allow you to take your crypto currencies and other digital assets offline and store them safely in cold storage. As long as you keep your keys (seed phrase) and pin for your hard wallet in a safe place your digital assets will be secure.