Ever wonder how to safely store your cryptocurrency offline? Be careful when doing so. If done incorrectly you can lose all of it. Storing your cryptocurrency consists of six, easy to follow, sequential steps if you’re transferring your crypto from an exchange (like Coinbase) to an offline hardware wallet (like a Ledger).
- Step one: ensure you have your exchange’s mobile application installed and authorized on your smartphone.
- Step two: buy your hardware wallet and be in physical possession of it.
- Step three: set up your hardware wallet ensuring you follow every step properly (especially storing your seed phrases correctly). Most hardware wallets also have desktop applications or at least web applications – ensure you probably created your account on their platform with a secure username and password.
- Step four: Conduct a test transaction. Take a small amount of your crypto, preferably around $20 worth (USD), and send it from your exchange account to your hardware wallet’s public address. This step is crucial. Do not make your first transfer of the bulk of your holdings. This is the part where you are most likely to make a mistake.
- Step five: Confirm your first test transaction ($20 transfer). This process will take about 45-60 minutes for at least 6 nodes to confirm the transaction.
- Step six: Transfer the remaining balance from your exchange’s account onto your hardware wallet. You can do this section in pieces, or in one lump sum. Just make sure that you’ve run and confirmed the test transaction first.
That’s it! That’s the entire process to ensure you properly stored your cryptocurrency offline.
Infographic Source: https://peterdavidconley.com/how-to-store-cryptocurrency-offline/