Storage is one of the central issues of cryptocurrency.
The technology differs from traditional currency management in that crypto is decentralized and operates without intermediaries, like a bank, leaving individuals in full control of their assets. In practice, a user’s digital currency assets are distributed across a network of computers via the blockchain, eliminating the need for a bank account.
What does all of this mean for regular users? When it comes to storing cryptocurrencies, holders are increasingly familiar with the cryptographic concepts of public and private keys. For reference, the public key allows transfers between different people, much like an email works in an electronic transfer. The private key is associated with the public key, which is more like a password, a string of letters and numbers that ensure that a given cryptocurrency asset belongs to an owner.
Since this process poses complexities that a new investor might not be accustomed to, many digital exchanges have taken on this role of intermediary holding the user’s private keys, replicating the user experience common in traditional banking. In pursuit of a streamlined experience, the cryptocurrency holder voluntarily relinquishes some control of their assets by leaving it to an intermediary.
This is causing concern, because one of the main reasons we have digital currencies in the first place is to eliminate middlemen and return full custody control to the owner of the funds. Institutions like exchanges are not foolproof: they can go bankrupt, taking their users’ assets with them, or some other day they may seize a user’s funds. This has led many to conclude that if a holder doesn’t control their private keys, they don’t really own your cryptocurrency funds. The opposite here is also true; it is only by having your private keys that you will achieve complete financial freedom.
With that in mind, how can cryptocurrency holders secure their assets on the blockchain without losing control? To this end, cryptocurrency experts often recommend the use of a hardware wallet.
The hardware wallet is a device that allows the owner of the cryptocurrency to store their private key in a secure chip. Since this chip exists separately from the user’s device, it is less prone to malicious hacks that can occur on a phone or desktop.
The reality of auto-custody is that users are solely responsible for managing their private keys. This is where solutions that ensure a user’s security and property, like Ledger, come in.
A combination that gives users full control
Ledger provides a solution that balances absolute security with practical utility while allowing users to retain full control over their crypto assets. At the heart of this offer is the extensive collection of Ledger hardware wallets, with options for beginners and advanced traders.
Operating with the highest levels of security including private keys inside the device, an extra level of protection, and the fact that the wallet is always offline, cryptocurrency holders can rest assured that their funds are secure while being in their own holdings, only ensuring the user is responsible for their money and no third parties are involved. That said, hardware wallets are generally recommended for those who plan to hold their assets for the long term.
So what about those who actively manage and optimize their portfolios?
Without removing ownership from a user, Ledger recommends that its offline hardware wallet be used in combination with Ledger Live to remove barriers to use. This software allows easy management of assets from a desktop or mobile solution. The combination of their hardware wallet and Ledger Live app allows users to manage their assets and transactions with a simple and clear interface. Therefore, the users remain in control from a management point of view.
A gateway to the new world
The team behind Ledger continues to add to the capabilities of this solution, now providing functionality for the transaction of over 1,800 different coins and tokens. With continuous updates on their roadmap, the platform is well positioned as a secure gateway for any cryptocurrency needs that may arise.
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