How to buy Monero (XMR) in Australia – Forbes Advisor Australia

Several cryptocurrency exchanges have been the target of high-profile attacks by hackers, resulting in users losing large amounts of cryptocurrencies. Although exchanges do everything they can to keep their customers' private and public keys safe, they are easy targets for criminals. Moreover, as the FTX collapse made clear, exchanges themselves may not be the model of sound financial management they should be.

If you do not want to store your keys in an exchange's integrated wallet, you can pay for a non-custodial wallet from a third-party provider or purchase a storage device, such as a flash drive, to store your keys.

Wallet providers are also a target for hackers, but they are also highly accessible because if you lose your wallet credentials for any reason, your provider may be able to help you retrieve your keys by verifying your identity. I am.

Offline “cold wallets” are not connected to the internet and are therefore more secure from hackers. However, connecting to a web-connected computer closes an “air gap” that prevents malicious parties from accessing your keys. Additionally, if you lose the seed phrase that protects your cold wallet, you may be locked out of your keys and effectively your assets.

Your choice of storage method depends on how you balance security and accessibility.

This article does not endorse any particular cryptocurrency, broker or exchange, nor does it endorse cryptocurrencies or CFDs as an investment class. Cryptocurrencies are unregulated in Australia, so your capital is at risk. Trading in Contracts for Difference (CFD) is riskier than traditional stock trading, is not suitable for most investors, and can result in the loss of some or all of your capital. Before deciding to trade CFDs or cryptocurrencies, you should always consider whether you can afford to lose your money and seek advice from a licensed financial advisor.