Where to Store Siacoin: Top 4 Places to Safely Store Your SC

Top 4 Siacoin Wallets to Safely Store Your SC 

Blockchain is one of the most disruptive technologies in the past decade. This decentralized ledger of transaction records has allowed us to improve upon the operational processes in countless industries. This includes finances, logistics, healthcare, gaming, and even file storage. 

Siacoin is a blockchain protocol that improves upon the latter and provides decentralized cloud storage for its users. In this article, you will learn about the Siacoin project, its advantages, and the best ways to store your SC coins. 

We will also delve briefly into how to choose a crypto wallet, depending on the type of investor you are. This should allow you to make the best choice when looking for the best option of where to store Siacoin. 

Introduction to the Siacoin Protocol

Siacoin is the cryptocurrency of the Sia network. This blockchain protocol allows users to share their extra storage space with others and be rewarded for it. This provides a wide range of benefits regardless if you are a renter or a loaner of storage space. 

You see, cloud storage systems are usually centralized. Consequently, when you send your files somewhere on the cloud, they go onto a centralized server. This is a huge drawback security-wise, as it presents a single point of failure. Bad actors can hack servers, shutting down the network, or compromising sensitive data. 

Because it’s completely decentralized, the Sia Network negates this disadvantage. In a nutshell, the Sia protocol splits your files into 30 different pieces and sends them to different hosts, encrypting each piece. As a result, the network is much more secure than a traditional cloud storage system. 

The SC tokens are used on the network to pay for the services provided by the hosts. Users pay SC tokens to lock their files into a smart contract on the blockchain. At the same time, the hosts receive a portion of these funds as a reward for providing storage space.  

How to Choose a Cryptocurrency Wallet

If these characteristics of Sia sparked your interest, you should know that before you buy any cryptocurrency, you should first create a cryptocurrency wallet. Cryptocurrencies are entirely digital and need specialized software for you to access and spend them. 

By and large, there are two major types of wallets: 

• Online (or “hot”) wallets, which are usually offered by cryptocurrency exchanges. The huge caveat with these hot storage options is that you don’t own the keys to your SC. As such, you need permission from the wallet provider to move your funds. 
• Offline (or “cold”) wallets, which encrypt your keys on a device you own, such as your smartphone, desktop, or a specialized device called a hardware wallet. As a bonus, they usually come with a web-based interface enabling you to easily send and receive cryptocurrencies. 

Hot wallets are very convenient when trading cryptocurrencies. However, once done with your trades, it’s better to transfer your SC to a cold wallet for long-term storage. This way, you will keep control of your funds at all times. 

Best SiaCoin Wallets on the Market

With those basics out of the way, let’s have a look at the best available wallets on the market for storing Siacoin. 

1. Ledger Nano S 

The Ledger Nano S is one of the most popular hardware wallets on the planet. It costs around $80 and provides storage for thousands of different coins. More importantly, in our case, the Ledger Nano S offers full Siacoin support, which isn’t commonplace in the industry. 

To store your SC on the Nano S, all you need to do is to install the Siacoin app for the wallet and you will be able to handle your funds right away. The huge benefit of Ledger devices is that they provide military-grade security coupled with a great interface for daily usage. 

2. Ledger Nano X

Priced at $160, the Nano X is Nano S’ big brother. It offers all of the advantages of the S version, with larger storage space. This allows you to install 100 apps for different coins (vs only 3 for the Nano S), which is ideal for investors that hold multiple cryptocurrencies. As such, it can be a good choice for those that wish to learn how to invest into Ripple and store XRP as well as SC. 

3. Sia.UI

Sia.UI is the official software of the Sia network team. It will allow you to download the entire Sia blockchain and participate in its ecosystem by becoming a storage provider. The caveat is that it has quite a learning curve before you can use all of its features. 

4. Sia Central Lite Wallet

Sia Central is a lightweight desktop wallet for Sia that doesn’t require you to download the entire blockchain. It’s ideal for investors that just want to send and receive tokens and prefer doing it from the comfort of their desktop. 

Here’s a short overview of the four options:

Conclusion

Siacoin is a beneficial project — one of the pioneers of the decentralized file storage ecosystem. Hopefully, our article helped you realize its potential and gave you enough information on how to choose the best wallet if you want to start investing in it.