- At the end of 2022, investors had misplaced over 4 million bitcoins (US$120.8 billion at current market pricing)
- Huge amounts of money have irreversibly disappeared due to either accidental loss of private keys, theft from scammers, hard forks, or exchange bankruptcies
- To prevent cryptocurrencies losses, it is imperative for crypto investors to use secure wallets to store their digital wealth
Since the launch of Bitcoin in 2009, the supply of the digital money continues to decrease. The bitcoin halving that is scheduled to happen in April next year will reduce the number of bitcoins drastically. The number of blocks is expected to hit 740,000. Each block reward will add 3.125 bitcoins to circulation, up from the current 6.25. The total supply of Bitcoin caps at 21 million. At the time of writing, there were 19,423, 593. 75 in existence. The total bitcoins left to be mined now stands at around 1.576 million bitcoins.
As this valuable cryptocurrency decreases, the number of lost bitcoins also continues to increase. OriginStamp estimates that at the end of 2022, investors had misplaced over 4 million bitcoins (US$120.8 billion at current market pricing). This often happens when investors forget their private keys, irreversibly losing their digital assets.
The loss of Bitcoin applies to every other cryptocurrency. Huge amounts of money have irreversibly disappeared due to either accidental loss of private keys, theft from scammers, hard forks, or exchange bankruptcies, among others.
How to prevent cryptocurrency losses
To prevent the aforementioned cryptocurrencies’ losses, it is imperative for crypto investors to use secure wallets to store their digital wealth. Most crypto traders store their cryptocurrencies in the exchanges they bought them. Exchanges such as Binance, Coinbase, and Gemini allow users to buy, sell and manage their crypto on the sites. However, the option is dangerous as investors have to trust the companies to keep their monies safe.
This article explores the top best hot wallet that investors can use to store their crypto and reduce the risk of crypto losses.
Trust Wallet feature among the most preferred wallets, with over 25 million users registering on the platform. It is a multi-chain wallet that supports over 65 crypto networks and NFTs. Trust Wallet provides a gateway to dApps through an inbuilt browser and the Wallet Connect feature. The wallet has additional features such as staking programs. Crypto holders can stake and earn from their cryptocurrencies while securing the blockchain.
The Binance-Trust wallet partnership has propelled it to the go-to site for many crypto traders. The partnership allows for easy transfer of crypto from Binance to the decentralized network.
Metamask (a cryptocurrency wallet and gateway to blockchain apps) is a software cryptocurrency wallet used to store, send, receive, buy, exchange, stake, and/or swap crypto and crypto assets. It supports the Ethereum blockchain and its growing ecosystem of dApps, all EVM networks (Binance Smart Chain, Avalanche, Aurora), and all EVM- compatible Ethereum L2s (Polygon, Optimism, Arbitrum, e.t.c).
Metamask supports a user base of 0ver 30 million, ranking as the most popular cryptocurrency wallet. It is easy to access, whether on Android, or iOS, and an extension for the widely used browsers. The wallet is also compatible with hardware wallets.
On the downside, however, Metamask does not support Bitcoin or any other non-EVM chains.
Safepal is a comprehensive non-custodial crypto wallet suite that supports over 10 million active users, over 100 blockchains along with 200,000+ tokens and NFTs. The wallet was established in 2018 and is backed by large exchanges Binance, Animoca Brands, and superscrypt.
Its hardware wallet is 100 per cent air-gapped and only uses an encrypted QR code to communicate. This prevents hacking through connections over WiFi, Bluetooth, and others. Safepal supports 15 languages and 100+ chains and has a mobile app that users can use to manage crypto and access dApps. Unlike Metamask, the wallets support EVM and non-EVM chains and have supported over US$100 million in transactions.
Aside from the above wallets, several other wallets are more efficient depending on the user. Web3Africa advises proper research and background check on each to ascertain which works best for what purpose.