How To Store Bitcoins
Bitcoins have exploded in value since its official launch in January 2009. From headlines to articles discussing what is Bitcoin and what can it do, many people are now lining up for a taste of digital coins. Luckily for every crypto-aware people out there, doing Bitcoin transactions is easy as learning how to store bitcoins properly. That, among all things, is what we’re going to discuss in this page.
Prior to buying bitcoins and selling bitcoins, one must first get a Bitcoin wallet—the software program where bitcoins are stored using unique, private encryption keys. While you’re busy learning how to store bitcoins, your Bitcoin wallet is safely keeping all your digital funds.
TYPES OF BITCOIN WALLETS
A Bitcoin wallet functions as your digital keeper and recorder of all the transactions you make, whether it’s for online shopping or betting. Learning how to store bitcoins properly starts with choosing the perfect Bitcoin wallet that matches your lifestyle and preferences:
Hardware Wallets – These are physical devices (i.e flash drives and externals) that store all the public keys in a cold storage. You can use hardware wallets offline as one doesn’t require Internet connection when confirming transactions. They are immune to hackers and computer viruses, but they also cost money.
Software Wallets – In contrast with hardware wallets and cold storage, software wallets function as a hot wallet. These are storage units you can install as an application directly on your computer, mobile phones, or other devices. Most are free and have easy configuration processes. The downside of software wallets is that you have to protect your computer from online attacks. We encourage you to maintain backups at all times. Other than that, software wallets is a viable option for most first-time Bitcoin users.
Online Wallets – These are cloud-based wallets also known as web wallets. If you have constant access to internet connection, this is the most convenient wallet for you. You can access the websites containing your wallets using your devices and the password alongside it when you first registered. Online wallets are mostly free and are easy to find. Hence, make sure that the online wallet you choose boasts the best security.
Paper Wallets – These are literal papers containing the private and public keys of your Bitcoin wallet and other transactions. It is the simplest of all wallets and the most ideal for long-term storage. The only disadvantage often encountered here is that the papers can be misplaced.