A Crypto wallet is a handy mechanism that allows you to interact with Blockchain networks and are a necessary tool when sending, receiving and storing Cryptocurrencies. Unlike the traditional wallet that you keep in your pocket, Crypto wallets don't hold your funds but serve as a means to access the blockchain system where your assets are stored as pieces of data.
When choosing a new exchange it can be difficult to know where or even if you're storing your Assets on that platform. Here at Swyftx, we have provided wallets for all of the Crypto assets listed on our platform. We have a wallet integrated with your account to make all the processes you're using on the platform simpler. When you buy and sell, deposit and withdraw, Swyftx uses various internal wallet systems to manage and maintain your Crypto securely and safely.
You'll always be able to check the balances of the Assets stored in your wallet as per the instructions here. Our storage of your Assets is a mixture of cold hot and wallet storage means in order to protect your assets. Additionally we take the security of our platform very seriously and implement a wide range of security practices, including:
using JWT tokens & session expiry;
offering 2FA account protection;
checking for breached passwords on other websites;
consulting with third party security auditors;
undergoing external penetration testing; and
implementing a least privileges security model internally.
Can I use an external wallet?
Definitely! You're more than welcome to use an external wallet to store your assets as well if you'd like. In fact we recommend it as storing your assets in an offline wallet will always be more secure than any exchange's wallet.
What is the difference between "hot and cold storage"?
Hardware wallet storage is known as “cold storage” because it is not connected to the internet, as opposed to “hot storage” methods that are internet-connected. Cold storage diminishes your exposure to the vulnerabilities that online digital asset storage methods are susceptible to.
Want a more secure way to store your Crypto?
Whilst we do our best here at Swyftx to maintain our security practices to the highest possible standard, an online wallet can and always will be susceptible to attacks. As such, we recommend our customers use the Ledger Nano S or X given Ledger's significant strides in wallet and asset security and that hardware wallets provide an offline or cold storage solution for storing your Crypto. These devices are available for purchase through a link to the ledger website in our Shop function.
Other Types of Wallets
Aside from hardware wallets, there are at least a half dozen other types of wallets, such as paper wallets, mobile wallets, web wallets, and desktop wallets. Wallet types vary by several measures. One of the more prominent factors that differentiate wallets is the degree of personal ownership to which users maintain over their private keys.
Paper Wallets: Paper wallets are often found in the form of a QR code that is printed on a piece of paper. The QR code can be quickly scanned. Once uploaded, the digital wallet’s long, alphanumeric key is generated instantly for the convenience of the receiver and sender.
Mobile Wallets: Mobile wallets typically come in the form of apps on your smartphone. This wallet type is most often used by people that frequently use cryptocurrency for small purchases on everyday goods. The app owner can access the information contained within the application.
Web Wallets: Your private key is held online by a third-party. While this mode of storage offers mobile flexibility, it constantly leaves your private key in the control of someone else.
If you have any further questions and whether you should obtain a hardware wallet, please get in touch with us via live-chat.