What Are The Safest Ways to Store Bitcoin – Are you trading or want to trade bitcoin and want to know what are the safest ways to store bitcoin? The answer to this question is going to be provided right here on this page. So here we welcome you to the safest ways of storing bitcoin.
When it comes to finding the safest ways of storing bitcoin or finding the best bitcoin storage for your bitcoin, there’s no one best option for everyone. Also finding the best solution for your bitcoin means understanding the different options available, and making the right choice for your spending and saving habits
Digital Wallets
Digital wallet is typically an app that you download to your phone or desktop. It also comes in other variations like web wallets and hardware wallets. So when you buy, earn or send Bitcoin Cash (BCH) or Bitcoin (BTC), the coins will appear in your digital wallet (aka Bitcoin wallet). This depending on how much Bitcoin you own as well as how often you want to access it, you can use different types of digital wallets in storing them.
Software Wallets – Convenient Storage
Let’s start by saying that if you are considering using a software wallet, you have to ensure the software wallet you are using is fully non-custodial. By this, we mean that only you can have access to your coins, not the wallet provider.
If you are a frequent bitcoin trader, using software wallets is very ideal.
Software wallets are designed as an app that you can download for free to your phone or desktop. You can simply open up the app, and make Bitcoin transactions instantly. However, you have to ensure that your device is well secured to prevent online theft since software wallets are connected to the internet.
Thus, it is advised that you store only a limited amount of your coins in a software wallet for regular trading and spending.
Hardware Wallets/Cold Wallets – Long-term Storage
If you are considering getting a hardware wallet, you will find that it is well worth the money especially if you own a lot of Bitcoin. To ensure that the hardware device is legitimate, it is advised that you only buy one from a company that you can trust.
Hardware wallets are physical devices that are specifically designed for the purpose of storing cryptocurrencies. They offer just the best security for your digital assets. Why they have termed the best security for your bitcoin is because, hardware wallets are not connected to the internet, which makes them invulnerable to online hacking.
Where you have a significant amount of Bitcoin, the best storage option is getting a hardware wallet known as cold wallet.
However since hardware wallets take more time to access, they are not ideal for making frequent Bitcoin transactions. Instead you can use them for long-term storage.
Storing Bitcoin on an Exchange
Note that, cryptocurrency exchanges are not a secure medium of storing your bitcoin. Thus once you have bought your Bitcoin, you have to move it to your software or hardware wallet as soon as you can. Thus, it is recommended that you use cryptocurrency exchanges only for trading and not for storing your bitcoin.
Cryptocurrency exchanges are a popular place for many newcomers who want to buy their first bitcoin owing to the fact that they make the buying process of bitcoin so easy. However here’s what you should note, the cryptocurrency exchange itself has control over the funds in your account (web wallet) and as such makes it far more prone to theft and fraud.
Paper Wallets
Using a Paper Wallet requires more in-depth knowledge and understanding of cryptocurrencies and bitcoin in order to successfully operate it. You can use services like Bitcoin Paper Wallet or Wallet Generator to print paper wallets for bitcoin. However, it’s important to fully understand the advantages and disadvantages before you embark on it.
Paper Wallets offer an element of anonymity for the user. In a relatively small amount of space, bitcoin Paper Wallets, make use of a seed phrase to transfer funds.
On the other hand, in addition to things like printer network security, paper wallets have similar disadvantages just like hardware wallets. If the paper happens to be lost or damaged, or if the link fades, you may not be able to use your paper currency.
Physical Coins
Physical Coins offer a similarly tangible way of storing and transacting Bitcoin. They include tamper-proof stickers which cover a certain amount of bitcoin.
Physical Coins do not require internet connectivity which makes it more secure and minimizes the risk of online theft or hacking. You can also store physical Coins anywhere, which increases the buyer’s options and flexibility for storage.
On the not-so-bright side, physical bitcoin can be lost or stolen. Also having physical coins printed costs additional money apart from the cost of investment.
Now that you have seen the different storage options for storing your bitcoin, you can go ahead and choose the one that best fits the need you want it for.