How do I store altcoins securely?

Bitcoin Questions and AnswersHow do I store altcoins securely?

Darik R Tolnay asked 1 year ago

How do I store Altcoins securely? Trezor and Ledger don’t support about 1200 cryptos and If I’m holding a significant balance in something like LBRY for example or Ripple or anything other than what is supported on Trezor/Ledger, where and how (it would be awesome if you did a video tutorial showing specifically how you store these altcoins securely) do you store these? Step by step from an exchange into a wallet and back again is what I’m looking for. Thank you! Also, can you recommend a mobile wallet for IOS that supports altcoins?

Paul Delphin replied 1 year ago

I agree with you guys – I find the issue of wallets for alt coins very confusing. I wonder why there is no universal solution out there? So please can I also ask… what’s the best wallet solution of storing a variety of alt coins in please as currently I have no clue and am “forced” to use my exchange’s default online wallet – which is maybe not so good since it’s a WordPress site. Thankyou very much and loved the free intro video course! Best regards from Tasmania, Australia.

Don replied 1 year ago

Am curious how to access and setup a very secure, safe wallet and how to setup and manage a seed code? It seems that the ability to be hacked is out there and if it is possible to steal one’s investment in an altcoin currency, how does one manage such a practice and be able to use the crypto-currency online in a safe and secure manner? If this is the future, it appears many bugs and pitfalls still exist… There are videos and descriptions from creating a code or seed from 64 characters all the way to 2048. And, many say it is best to “write” them down the old fashion way, which leads to possible errors, and to avoid online seed-code creators, for obvious reasons. Please advise and describe the best practices. Thank you.

1 Answers
Steven Hay answered 1 year ago

Hi Darik, Paul and Don,
Darik, if there’s no hardware wallet support for a particular altcoin, then the best method for storing it is always going to be the software wallet(s) recommended on that coin’s official website. These sites will mention if an iOS wallet exists, but do keep in mind that smartphones are not an ideal environment for wallets due to their inherent lack of physical and digital security.
While multicurrency wallets do exist, all the ones I know of contain closed source elements (meaning the code is not open for inspection and could conceivably be doing anything, even things which would enable theft of coins). Furthermore, by being focused on supporting as many coins as possible, I don’t see how multi-wallets can also be focused on maximum security for all coins as well as staying up to date with important developments and updates in each coin.
In other words, I’d advise using the “official” software wallets for each coin. You should of course study and diligently adhere to the best computer security practices if storing cryptocurrencies on your machine. Regular and tested backups – of seed phrases or wallet files depending on how the wallet works – are of course highly recommended.
Paul, I hope the above answers your first question as well. There is no universal solution possible due to the nature of cryptocurrency. It’s a bit like asking why there’s no bank in your country which allows you to deposit and withdraw every world currency. The differences between cryptocurrencies and the sheer number of them makes a universal wallet something of a technical impossibility… As wallets are free software, I can’t see a universal one being developed as anything but paid software, and I can’t see that succeeding.
Don, the best solution is to use a hardware wallet. If the altcoin you’re interested in isn’t supported by a hardware wallet, then see my answer to Darik. You should indeed avoid any kind of online seed phrase generator. Generally speaking, the wallet itself (whether online, software or hardware) will generate the seed phrase for you and it’s your job to record it accurately and store it safely. For doing so securely, check out our review of the CryptoSteel seed phrase storage device:

CryptoSteel Review (Burned it down, ran over it and smashed it to the Ground)

You can DIY your own version with some stainless steel / aluminium plates and a metal letter punch kit.

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