Let’s start with some general information about how cryptocurrency works. Cryptocurrency is a digital currency that operates outside of any central authority, like the government or a bank.
Because it isn’t backed by anything other than faith in its users, it can be difficult to understand and much easier to lose money on.
Unlike traditional currencies such as pounds or dollars, crypto is not regulated by anyone except for those who create it. Even then, they’re usually anonymous and often located in foreign countries (the UK included).
Methods for Storing Cryptocurrency
There are many different types of wallets that you can use to store your cryptocurrencies. You can visit Tezro blog to find out more about the best crypto wallets in UK.
Some are more secure than others, but the choice depends on your individual needs and preferences.
Here are some of the most common examples:
1. Hot Wallets
These wallets allow users to easily access their funds at any time in exchange for security risks like losing their private keys or having their accounts hacked. They’re usually free too!
Examples include Exodus Wallet and Jaxx Wallet for Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and other cryptocurrencies.
Some crypto exchanges such as Binance have their own in-house wallet. Like other hot wallets, these services are free-to-use but offer the benefit of being affiliated with a reputable crypto exchange.
2. Cold Wallets
These wallets store funds offline on devices that never connect to the Internet; this makes them more secure but also more inconvenient than hot wallets since you’ll need physical access to move coins around between cold storage locations first before making transactions from there afterwards.
Plus there’s no way around paying transaction fees twice if doing so involves moving money back into an online account again! However this technique works great when protecting large amounts of value over long periods where convenience isn’t really an issue.
3. Paper wallets
These print out all or part of your public and private key information onto paper so that they can be kept offline by storing them somewhere secure like at home, but still accessed when needed
Best Crypto Exchanges in the UK
If you’re looking for the best cryptocurrency exchange in the UK, these are your options:
1. Coinbase
Best for beginners. This is one of the most popular exchanges out there, but it has been criticized by enthusiasts as being too mainstream and is at risk of becoming a bank.
2. Cex.io
More flexible than Coinbase and offers more coins to trade than most other platforms. Cex also allows users to set up their own wallets, so if you want a multi-currency wallet that supports multiple tokens then this is a good option for you.
3. Binance
A very well-regarded exchange with low transaction fees (0%), high liquidity, and many different cryptocurrencies listed as well as fiat pairs (meaning you can transfer money from an exchange directly into your bank account).
They have recently started offering their own coin called BNB which can be used on their platform or traded elsewhere if desired; they also offer free withdrawals so long as the user holds at least 0.1 BTC worth of BNB tokens in their account balance at all times!
Some Considerations
While cryptocurrencies have the potential to be enormously lucrative, never forget that these assets exist in a decentralized and unregulated environment. This means that the market can suddenly bottom out without any warning, leaving you with assets which are now worthless. So, be sure to keep that in mind when investing in cryptos, and only invest what you’re prepared to lose.
Closing Thoughts
Crypto has become a big part of our lives and it’s not going anywhere. With so many options available, it can be hard to know which one is right for you.
But you can rest assured that all the examples I’ve provided you with here are great ways to safely store your crypto assets.
