You can store Monero (XMR) in diverse types of wallets, depending on your safety necessities and convenience. The most widespread variants are hot wallets and cold wallets.
What Are the Safest Ways To Store Monero (XMR)?
11 Aug, 2023
Monero (XMR) is a confidentiality-oriented cryptocurrency that has obtained great popularity because of its powerful emphasis on supporting user anonymity and transaction privacy. As with any digital asset, protection of your Monero holdings is of decisive importance to defend against potential threats, particularly, hacks and theft. Let's find out below what are the most secure ways to store Monero, ensuring that you will be able to enjoy the advantages of this confidentiality coin with peace of mind.
Wallets as the Best Way to Store Monero
Monero wallets are significant instruments that enable individuals to store, send, and obtain XMR safely. These wallets may be of diverse forms, each with its unique level of safety. In general, Monero wallets may be categorized into two types such as hot wallets and cold wallets.
Hot wallets represent online wallets that are constantly connected to the internet. Although they ensure simple accessibility and convenience for regular transactions, they are more vulnerable to hacking attempts. Individuals may obtain access to hot wallets through desktop applications, mobile applications, or web-based interfaces. If you decide to utilize a hot wallet for storing Monero, it is recommended to take into account the following safety practices:
- Two-Factor Authentication (2FA). Turn on 2FA on your hot wallet to add another layer of safety. This function demands you to enter a one-time code from your gadget or email, making it more complicated for unauthorized users to receive access to your funds.
- Regular Updates. Keep the software of your hot wallet up to date to correct any potential vulnerabilities and make sure you are utilizing the latest safety protocols.
- Strong Passwords. Come up with a strong and unique password for your hot wallet and shun utilizing simply guessable phrases or words connected with your personal information.
- Restricted Funds. It is advisable to keep the amount of Monero you require for only regular transactions in your hot wallet. The rest you may store in a cold wallet.
Hot wallets are considered the simplest wallets to utilize. Still, you should remember that hot wallets are less safe than wallets that work without interacting directly with the internet or a computer.
Cold wallets, likewise titled offline wallets, are not connected to the internet, ensuring a considerably higher level of safety compared to hot wallets. These wallets can be hardware devices or paper wallets.
- Hardware wallets are physical devices that store your private keys offline, defending them from potential cyber threats. Widespread hardware wallet variants for Monero involve Ledger and Trezor, which propose reliable safety features, particularly, PIN codes and seed phrases.
- A paper wallet is a physical document that comprises your Monero public and private keys. It is generated offline, making it sustainable for online attacks. Nevertheless, your task is to protect carefully the physical paper from damage and unauthorized access.
Even if your cold wallet is disconnected, it can still obtain cryptocurrency. But the wallet will require connecting with the internet somehow to send funds to another wallet across the blockchain.
Utilize Reliable and Updated XMR Monero Wallet
When selecting a Monero wallet, make a choice in favor of reputable providers with experience in the field of safety and frequent updates. Be careful and attentive with new and unknown wallets because they may not have undergone thorough safety audits. Search for community endorsements and reviews before choosing your Monero wallet. Also, you may familiarize yourself with overviews on some Monero wallets to make a choice in favor of the most suitable option for you. The most popular Monero wallets that are regarded as top variants by individuals are MyMonero, Cake Wallet, Monerujo, Trezor Model T, the official Monero GUI wallet, and Ledger Nano.
Protect Your Backup
Regardless of the wallet type you select, it is of decisive importance to have safe backups of your private keys or seed phrases. Store them in physically separate and safe locations, away from prying eyes and potential disasters, particularly, fire or flood. Shun digital backups unless you utilize encryption to defend them.
How to Store Monero on Wallet?
If you intend to store Monero in your wallet, you should follow definite steps. First, you should select a reputable wallet, for instance, MyMonero, Cake Wallet, Monerujo, Monero GUI, or Ledger Nano. Then, your task is to download the wallet software from the official website and install it on your gadget. After that, you may create a new wallet or restore an existing one utilizing the provided seed phrase. To obtain Monero, you should share your wallet address with the sender. After obtaining Monero, keep your wallet software and seed phrases safe and never share them with others. Back up your wallet data regularly to hinder the loss of funds. Abide by good safety habits and stay alert against potential threats.
The protection of your Monero (XMR) is a crucial responsibility for any cryptocurrency holder. By selecting the right type of wallet and following best safety practices, you will be able to minimize the risk of losing your funds to hackers or other threats. Hot wallets propose convenience, while cold wallets, particularly, hardware wallets, ensure the highest level of safety. By giving priority to safety, you will be able to enjoy the confidentiality and potential gains with certainty that Monero proposes in the constantly expanding world of cryptocurrencies.
Frequently Asked Questions
The best wallet for Monero (XMR) depends on the user's preferences and demands. Some popular choices involve the official Monero GUI wallet, Cake Wallet, Monerujo, MyMonero, Ledger Nano, and Trezor Model T.