Don't let your crypto get hacked on an exchange

Why storing your crypto in a distributed wallet is safer than an exchange

17 May 2022

Exploring the differences between distributed wallets and exchange wallets

If you're like most people, you probably store your cryptocurrencies on at least one exchange. This is convenient for those making frequent transactions with their digital assets. But it's also very risky. Crypto exchanges are a favorite target of hackers, so if your crypto is stored on an exchange, you may lose everything. Distributed wallets are much more secure than exchanges and they provide peace of mind by keeping your crypto safe from an exchange hack.

multiple computers and devices represented a distributed network for crypto security

As the saying goes, "Don't put all your eggs in one basket." This adage applies to cryptocurrencies as well. Relying solely on exchange wallets can be perilous, given the inherent risks associated with them. While you'll likely want to make exchange transactions, you also want to minimize your risks. Cryptocurrency exchanges are frequent targets for cyberattacks, and if an exchange is compromised, you could potentially lose all your digital assets.

The prevalence of exchange hacks is a sobering reality. It seems like news of a new exchange hack surfaces almost every week. Even Coinbase, one of the world's largest and most reputable cryptocurrency exchanges, fell victim to a hack in May 2021. During this incident, hackers stole cryptocurrency from thousands of Coinbase customers due to a vulnerability in the exchange's two-factor authentication system.

Coinbase's CEO, Brian Armstrong, openly supports the idea of utilizing wallets with robust security features alongside exchanges. This reflects the industry's growing recognition of the need for more secure storage solutions.

The quest for a more decentralized and secure crypto storage solution

If you are deeply involved in the world of cryptocurrencies, you should consider a distributed storage strategy that prioritizes safety and security. While exchanges are often used by active traders and investors for their convenience, they may not be the safest place to store your assets, especially for the long term.

The next time you contemplate storing your crypto assets on an exchange, it's essential to weigh the risks carefully. The potential loss of your assets in the event of an exchange hack is a substantial risk that should not be underestimated.

In the realm of cryptocurrencies, one cannot be too cautious. Thus, it's crucial to safeguard your digital wealth by keeping it in a secure and resilient distributed storage solution.

The alternative: A distributed wallet

Distributed wallets offer a significantly higher level of security compared to exchange wallets primarily because they are not centralized. Instead of relying on a single central authority, the onus of security falls upon you, the user. However, this doesn't mean that managing a distributed wallet needs to be overly complicated. Wallets like Gridlock are designed to strike a balance between ease of use and robust security. Gridlock users enjoy a distributed mobile wallet that reduces risk and is super easy to use while offering cutting-edge security.

What is a distributed wallet?

A distributed wallet is a secure and decentralized storage solution for digital assets. Unlike traditional exchange wallets that rely on centralized servers, a distributed wallet operates on a network of multiple computers and devices, distributing the responsibility of safeguarding your cryptocurrency holdings across various locations.

With Gridlock's distributed wallet, you can select the devices and locations to store the distributed key shards of your private keys. Whether its other devices you own, devices of your friends or family, or Partner Guardians using trusted crypto companies. your Guardian Network keeps you safe and is always 100% in your control.

This decentralized approach minimizes the risks inherent with exchange wallets, making it extremely challenging for hackers to compromise your assets. Users retain full control over their private keys and funds, ensuring greater security and peace of mind in an era where digital asset protection is of paramount importance.

Unparalleled Security with Gridlock

Gridlock stands as a prime example of a distributed wallet that offers both convenience and top-notch security. Using Gridlock provides peace of mind, knowing that your cryptocurrency is safeguarded against the risks associated with exchange hacks.

A core principles of Gridlock is decentralization. With no central authority to target, hackers have no single point of entry to exploit. Your cryptocurrency remains safe and secure within the distributed network architecture of Gridlock.

One of the key advantages of a distributed wallet like Gridlock is that there is no single point of failure for hackers to target. Access to your cryptocurrency holdings is distributed across multiple locations, making it extremely challenging for any malicious actor to compromise your assets. Additionally, with Gridlock, your crypto truly belongs to you, and you are in complete control.

Considering a distributed wallet is easy with Gridlock

If you are serious about protecting your cryptocurrency assets, it's time to reconsider relying solely on exchange wallets. The risk of losing everything due to a hack is simply too great. Instead, explore the option of using a distributed wallet like Gridlock to fortify your digital wealth.

In conclusion, the world of cryptocurrencies is rife with opportunities and risks. While exchanges offer convenience, they also pose significant security threats. Distributed wallets provide a safer alternative by decentralizing the storage of your assets and putting you in control. Gridlock is just one example of such a distributed wallet, designed to offer the utmost security without compromising ease of use. Don't wait until it's too late; prioritize the security of your cryptocurrency holdings and consider a distributed wallet solution today. Your crypto assets will thank you for it!

Download Gridlock today and experience a distributed wallet that gives you full control over your crypto assets and robust security in a mobile crypto wallet. Be sure to join our community on Discord

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Written by Mason Winsed

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Mason Winsed simplifies blockchain for the people. With a comp-sci background and a passion for crypto safety, he's your go-to for straight-forward crypto wisdom. In his off time, he's coding or gaming. Join Mason for a no-nonsense crypto talk.

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