We always hear about someone who recently bought a lot of bitcoin but lost it once the cryptocurrency value has started to rise.
So, if you’re just new to bitcoin, the first thing you might want to do is to think of a way to ensure that it is safe and secure. The same can also be said if you’ve been holding bitcoin for years now; you should be looking to upgrade your bitcoin storage.
Before you go ahead and find the best way to store your bitcoin, it’s important that you understand that you are not actually storing it itself. Bitcoin is not an object. It is an encrypted address on a blockchain. What you actually get is a unique key that unlocks a specific bitcoin location. This is the one that you should be protected at all times and one of the best ways to do it stores it in a wallet.
With that said, there are many ways to store your bitcoin with each of them offers a certain level of security. It all depends on how safe you want your bitcoin to be and how much you want to use it on a regular basis.
One of the best and easiest ways to store your bitcoin is to put it in an online digital wallet, or storing it locally to your computer or mobile device. However, doing such a thing can make your bitcoin vulnerable to attacks from scams and hackers. This is why it’s best that you store bitcoin on a hardware wallet where you can store your cryptocurrency offline.
Hardware wallets are like USB drives. You can easily connect them to a computer. They require you to use PIN number when accessing it. They also have a secondary password called “seed” that you can use to access your bitcoin if you forgot your PIN number. But if you forgot the two passwords, then you are so unfortunate. This is why you must write down your “seed” password somewhere safe.
Another major drawback of a hardware wallet is that once you lose it, you have no other means of recovering your bitcoin. This is why we suggest that you should always create a backup on another encrypted storage device just to make sure.
Store Your Bitcoin: Other Options
Another problem that we don’t like about hardware wallets is that they can give you a hard time in actually spending your cryptocurrency. So, instead of storing all your bitcoin on a hardware wallet, we suggest that you keep a small amount of it on a digital wallet.
And, if you want to store your bitcoin offline but don’t prefer hardware wallet for it, you may want to use a paper wallet instead. A paper wallet is a piece of paper where all your public and private keys that you used to access your bitcoin are printed on it.
If you don’t plan on using your bitcoin for a while, then the paper wallet is a good option for you. Just make sure to keep the paper wallet somewhere safe and secure.