Ripple Cold Storage: Best Way to Secure Your XRP
Since its release, rumors and unproven allegations have plagued the Ripple project.
Namely, there has been a longstanding belief that Ripple (the company) can somehow freeze or reverse transactions of XRP (the cryptocurrency). These allegations are false. Ripple has no more ability to interfere with XRP transactions than Vitalik has the ability to interfere with Ethereum transactions.
That being the case, any XRP that are lost or stolen are gone for good. Just as with any other cryptocurrency, there is no way to reverse a transaction once it has been finalized. That’s why Ripple cold storage is so important. As an XRP investor it’s up to you to protect your investment.
Why Cold Storage is so Important
Since 2017, Bloomberg estimates that nearly $10 billion dollars’ worth of cryptocurrency has been stolen, much of it from exchanges. In some cases, an exchange doesn’t even have to be hacked. Coins can also be lost if an exchange owner dies without passing on the information needed to access the assets held in custody. Yes, this really happened...
Aside from not having to trust third parties like centralized crypto exchanges, cold (offline) storage of your XRP is also important because:
- Computers can get malware. Cold storage like hardware wallets and paper wallets are immune to malware and viruses
- Computers can be hacked and remotely accessed. With hardware wallets, transactions have to be verified on the device
- Online exchanges can be hacked. Hardware wallets keep your private keys offline, eliminating the risk of your keys being hacked or copied
- Hardware wallets are encrypted so even if they are stolen, they are useless to a thief
Ripple Cold Storage with Exodus + Trezor
Trezor is one of the most reputable and popular cryptocurrency hardware wallets on the market and is used by the likes of Andreas Antonopoulos, a popular crypto advocate, author, and speaker.
Together, Exodus and Trezor make advanced security easy and put forth the best XRP cold storage solution available.
An advantage of Exodus is that it’s possible to exchange cryptocurrencies directly from the Trezor without first having to send them to an exchange. This adds another layer of security and makes it impossible to lose your coins by accidentally sending them to the wrong address.
This is actually a real concern because there is a computer virus that changes cryptocurrency addresses that you copy to your clipboard so that when you paste the address, you’ll be pasting the hacker’s address and sending the coins to a hacker’s wallet. Nasty stuff that can be easily avoided by trading straight from the security of your own wallet using Exodus’ exchange application.
XRP Paper Wallet
A paper wallet is another form of a Ripple cold wallet. A paper wallet gets its name from the piece of paper that you write down the Ripple secret key on when you create the wallet. There are several advantages of a paper wallet.
- It’s cheap. Paper wallets cost the price of a sheet of paper. Most people likely have a spare piece of paper lying around so for many, this is a good free option
- It’s tried and tested. Paper wallets are simple to set up and are one of the most secure ways to store Ripple XRP
There are some disadvantages to using a paper wallet, however.
- Not so easy to use. Depending on how you set up your paper wallet, it can be challenging to send funds from it. Thus, paper wallets are a better solution for long term investments. They’re not good if you need to access the XRP often or even from time to time
- Not universal. If you use paper wallets you need to create and backup a new wallet for each cryptocurrency you own. If you use a Trezor you only have to keep a single seed phrase safe. That Trezor seed phrase can be used to restore all of your crypto wallets associated with the Trezor
If you’d like to create an XRP paper wallet, the following guide will be useful in helping you to set it up.
General Security Tips
In crypto there are some lessons that you really, really don’t want to have to learn the hard way. Adhere to these precautions and the hackers and other assorted riff-raff will never have a chance to take your crypto from you.
- Never take a digital photo of your seed phrase or private key. If your photos get leaked, your crypto will be gone before you know what’s happened
- Never store your seed phrase as a digital file on your computer. If a hacker gains access to your files and finds it, your funds will be gone
- Tell someone who you trust where you’ve stored a copy of your seed phrase. Don’t be like this guy
Storing Your XRP Safely
Crypto is awesome and the ability to self-custody your own currency is amazing. That ability to hold onto your own XRP comes with some responsibility though. Failing to store it correctly can give a hacker every chance they need to take it.
That’s why Ripple cold storage with an XRP cold wallet is recommended whether you have 100 XRP or 100,000. With a cold wallet like a Trezor Model T, you can be sure that your crypto is safe and will remain so for years to come.
Information provided is for informational purposes only and should not be considered financial advice. Investing in crypto assets is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Past performance is not indicative of future results.