Even though the cryptocurrency industry has only gone mainstream over the past decade, it has already produced a narrative so well known it's almost a cliche. An individual, or perhaps even a digital renq currency exchange, is subjected to a malicious hack.Many investors buy a popular digital currency like Bitcoin or Ether on an exchange, only to keep the currency on that platform. Digital exchanges take safety precautions to prevent thefts, but they are not immune to hacks.

Like cold wallets, online wallets tend to have private keys that are not recoverable if missing, so it's absolutely essential that you store your private key in a secure location that you'll remember. Individuals have gone to extreme measures to safeguard their keys—keeping them in safe deposit boxes or as encryptions in graphic files. Some users have gotten tattoos with their key information.