What Are The Safest Ways To Store SafeMoon Coins?
In this article, Trading Education will share our best ways on how you can store SAFEMOON. This will embolden you to get to know the safest ways to store SafeMoon Coins.
SafeMoon Protocol is a combination of RFI tokenomics and an auto-liquidity generating protocol.
SAFEMOON reached its peak in the early days of the crypto boom in April 2021. This increased the popularity of the cryptocurrency to new heights.
Audit firm CertiK conducted an extensive study of the protocol and although it found some issues, it ruled the SafeMoon Protocol as safe to use.
Despite this, several individuals believe the swift rise and sharp decline in the price of SAFEMOON is an act of pump-and-dump.
In addition to such fears, the cryptocurrency space continues to face cybersecurity threats from hackers who have taken off with millions of dollars.
The hackers and scammers have had their way because several beginners are unsophisticated. This means they do not conduct fundamental and technical analysis which leads them to unsafe investment practices.
Using different ways, hackers have found a way to bypass several security systems and made off with billions of cryptocurrency holdings.
Because of the decentralized nature of the trading and investing of cryptocurrencies, several victims could not hold their perpetrators accountable.
This has led to questions such as how do you store SAFEMOON, where is the safest place to keep your cryptocurrency, and what is the safest place for SAFEMOON?
More essentially, the question that Trading Education wants to find an answer to is what wallet can I use to store SAFEMOON?
- SAFEMOON holders can lose their tokens as well as other crypto trading assets due to theft, loss of private keys (passcodes), and a crashing of computer drives.
- Cold Storage which is also termed Offline Storage is one of the safest ways of holding SAFEMOONs. This is because SAFEMOONs that will be held in cold storage cannot be accessed via the internet. Despite the security cold storage gives holders, many SAFEMOON holders still prefer hot wallets (online wallets) because of the convenience it brings them.
- Hardware Wallets should be patronized for storage by SAFEMOON holders with a long-term investment strategy.
As of November 2021, because of the advancement in technology, millions of people do not keep physical representations of fiat currency such as the United States Dollars (USD).
Most of the fiat money is now kept in digital wallets. These digital wallets also hold digital tokens such as SAFEMOON. Digital wallets can be hardware-based or web-based.
Wallets can be kept in 3 different ways.
The first way is to print or write your private keys (passcodes) and addresses used for accessing your wallet on numerous pieces of paper. This way, if you lose one of the papers your passcodes were written on, other papers can help you restore your access to your SAFEMOON holdings and wallet within seconds.
The second way is to keep your wallet on a personal computer (desktop or laptop).
The last way of keeping a wallet is to have it on a mobile device such as a smartphone, tablet, or pad.
One of the questions that continue to trend across search engines such as Bing, Yahoo, Safari, and Google is how safe are any of these digital wallets?
Although there are several answers, the most important lies in the way the holder manages their wallet.
As pointed out earlier, Digital Wallets contain a set of private keys that comes in the form of a minimum of 12 names and a maximum of 24 names.
The names are arranged in a particular order.
Without these names (private keys or passcodes), access to the account remains impossible.
Therefore, the biggest threat in SAFEMOON security is the loss of private keys either by being stolen by third parties or forgetting how to arrange them from 1 to 12 although you may remember all the names.
Once this happens, irrespective of the worth of SAFEMOONs in your holdings, access to your wallet is all but GONE forever.
What’s more, depending on where you hold your coins either on a personal computer or smartphone, activities you do not control such as the spread of viruses can render your hard drive useless.
In that case, everything on the drive including your SAFEMOONs stay destroyed forever.
A great example can be attributed to malware that holds your files to ransom. In May 2017, everyone who had an outdated Microsoft Windows operating system online saw a blackout of their screen.
In most people’s attempt to restore their account, they saw a message boldly written after the booting phase of the Windows Operating System was completed. It was from WANNACRY.
The message was categorized under three (3) headings and they were what happened to my computer, can I recover my files, and how do I pay?
Excerpts of the messages go, “Your important files are encrypted. Sure, we guarantee that you can recover all your files safely and easily. But you have not so enough time. Payment is accepted in Bitcoin only.”
Although millions of personal computers were affected, few users were able to meet the demands of the hackers.
To those who could not, all files including cryptocurrencies held on hard drives were lost due to their not being able to meet the demands of the perpetrators.”
Below, we are going to take a look at some of the best ways to store SAFEMOON coins safely.
All forms of digital wallets that can be found online are hot wallets. Personal computers, smartphones, tablets, and pads are devices that are connected to the internet 24 hours a day and 7 days a week.
Although the internet has created a global environment where new connections can be made and jobs can be attained, several people have seen numerous opportunities to make money.
Therefore, once these devices are connected to the internet, they are in a space where malicious programs are also being distributed daily.
This makes hot wallets vulnerable since signing up, loggings, and logouts rely on the internet to go through successfully.
Although hot wallets have been cited as the best way for millions of SAFEMOON holders and cryptocurrency users as a whole because of how they can be employed to make transactions quickly, they still lack security.
The security of hot wallets has been on discussion boards of several blockchain analysts and experts.
This is because several people felt their wallets could protect them from all security threats till they found their holdings stolen by hackers.
This is why Trading Education continues to advise our readers, clients, and customers about the need to get to know the real identities of people before you do cryptocurrency-related business with them.
Hot Wallets in many ways are good for cryptocurrency traders and investors with a low budget.
Having that kind of a budget means in the case of a security breach, you stand a chance of losing relatively small sums of money.
For you to understand the purpose of hot wallets, let us compare them to checking accounts.
A checking account is a deposit account that is held at a financial institution that allows withdrawals and deposits. They are also called transactional or demand accounts. As a result, they are extremely liquid and can be accessed through a diverse range of methods such as ATMs and electronic debits.
This means that like hot wallets, smaller amounts of SAFEMOON could be held so that they can be used to meet the daily transactional demands of cryptocurrency traders and investors.
Hot wallet comprises mobile wallet, desktop, web, as well as custody wallets from cryptocurrency exchanges.
One vital thing several traders and investors fail to take into account is that holding cryptocurrencies in a personal wallet and holding cryptocurrencies on an exchange are two different things.
The accounts you create on cryptocurrency exchanges that support SAFEMOON for trading such as SAFEMOON, Gate.io, ZB Global, Bitrue, Hotbit, KickEX, WhiteBIT, Bitbus, BHEX, DeCoin, and Biki are rightly termed CUSTODIAL ACCOUNT.
What this means is that you are given a chance to sign up for an account with your full legal name, email address, contact number, and residential address.
This in no way means you have access to the SAFEMOON tokens and other cryptocurrencies under your portfolio.
The cryptocurrency exchange has the private keys (passcodes) to your crypto tokens.
As has been seen over the years, with the hacking of South Korean exchange Upbit (342,000 ETH stolen) in November 2019, Vietnam crypto exchange VinDAX ($500,000) in November 2019, largest cryptocurrency exchange Binance (7,000 BTC stolen) in May 2019, and the hacking of Bitrue Exchange in June 2019 that saw hackers take-off with 2.5 million Cardano (ADA) coins and 9.3 million XRP tokens, no one is truly safe.
In such instances, many holders lost some part of their holdings. Fortunately, those that registered for custodial accounts on well-insured cryptocurrency exchanges were indemnified fully or partially. Those who registered on uninsured exchanges lost everything.
This is a testament to the need to have a safe storage system that can securely hold your SAFEMOONs.
Despite the difficulties associated with using hot wallets, when it comes to the execution of timely transactions, they have through time appeared to be very efficient.
Therefore, just as you always diversify your portfolio, do all you can to diversify your crypto holdings.
Examples of hot wallets that support SafeMoon are MetaMask, TrustWallet, and SafeMoon Wallet.
Several blockchain enthusiasts, decentralized finance experts, and cryptocurrency analysts believe that a cold wallet provides the safest option for the storage of SAFEMOON and other crypto trading assets.
To put it simply, unlike hot wallets that need internet access to be efficient, cold wallets are not connected to the internet.
This lessens their susceptibility to cyber-attacks.
In case you come across offline wallets or hardware wallets, you should know they are the same as cold wallets.
The addresses of wallet users, as well as their passcodes (private keys), are stored on a program that can operate without internet access.
This means that portfolios can be accessed in real-time without putting the passcodes of users at risk.
Paper Wallet is one of the ways of storing SAFEMOON and other tokens online.
According to analysts at Investopedia, like a hot wallet, a paper wallet also makes use of public and private keys.
A Paper Wallet is a printed piece of paper that contains keys and QR codes that are used to facilitate cryptocurrency transactions.
Please remember that access to that piece of paper is the sole way of accessing your SAFEMOON holdings.
Therefore, you can follow others who laminate their paper wallets, or those who place them in a safety deposit box in a traditional financial institution or a safe at their homes.
Trading Education Tips: Note that paper wallets are only essential when there is a piece of paper and the blockchain it can access, it does not have any other corresponding user interface.
Nowadays, the Universal Serial Bus (USB) Drive can be purchased by people from all walks of life from the Americas to Asia.
Aside from being used to store files and videos, the USB drive device is an invaluable way of storing private keys on a hard wallet. With USB, information copied to the device continues to remain intact until the user chooses to delete them.
With an eye on the Ransomware virus (Petya and WannaCry) that crippled thousands if not millions of hard drives, supposed essential files were stored on a USB, private keys would have been retrieved easily.
Trading Education Advice: Although USB drives provide a safe and secure way of storing details of your SAFEMOON and other tokens, its safety as a tool for storing coins lay in the hands of the individual trader/investor and the company using it.
OVERALL, if you are searching for a secure way to store your SAFEMOON coins, then Trading Education will like to recommend COLD WALLETS instead of HOT WALLETS.
But before you use either of the two, make sure you have conducted independent research before signing up for a wallet.
As a beginner trader or investor, you should prioritize knowing the pros and cons of using hot and cold wallets so that you can make a proper assessment of what will help you.
Read Also: How to Choose a Cryptocurrency Wallet
Other Security Precautions
Thanks to the use of social media platforms primarily WHATSAPP, we have gotten accustomed to the importance of BACKUP.
It is only through this feature that we can regain access to essential documents and photos.
Just like you do for your WHATSAPP, you need to have a backup for your SAFEMOON wallets.
Embarking on a culture of backups is the only way through which you will be able to regain access to your crypto holdings effortlessly. Always remember that Wallet.dat files must be backed up and stored on external hard disks, USB drives, and compact discs (CDs). If you do not want to take the security of your backups for granted, remember to set passwords for them.
You should know that the spread of Malware cannot be stopped.
No single individual can shut the internet because if one cloud or storage system is off in America, other companies will still be operating in other parts of the world.
With an eye on the Ransomware that affected outdated operating systems, you should always update your personal computer with free and paid software.
Some of the software include but are not limited to Avira Software Updater, IObit Software Updater, Systweak Software Updater, Glarysoft Software Update Pro, Patch My PC, PC App Store, OUDATE Fighter, and Heimdal Thor Agent.
Although there are free systems, you would not use a door that can easily be breached. Therefore invest in software that can help your PC stay updated as well as secured.
Always turn on two-factor authentication (2FA) so that in the event a third party should get access to your account one way, they may have to provide additional information before they can fully restore your account.
In the event you choose to store your SAFEMOONs on hot wallets such as TRUSTWALLET, SAFEMOON WALLET, or METAMASK WALLET as well as on cryptocurrency exchanges, you should turn on 2FA.
This way the person must confirm knowledge, possession, and inherence collectively called AUTHENTICATION MECHANISM.
In the long term, you will find the extra layer of security on all forms of storing SAFEMOONs and other tokens highly resourceful.
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