Home Beginners Where to store bitcoins?

Where to store bitcoins?

by Alt Coins

From a technical point of view, the bitcoins themselves have not stored anywhere. Only digital private keys are stored, which give access to public bitcoins to addresses, and the ability to sign transactions. This information is stored in the purse that you choose.

Allocate a lot of groups of new bitcoin wallets. There are a lot of them. The standard typology contains five basic types. But they can be divided into three broad and global types, which we describe in the article and tell about each of them.

The first kind is online wallets

Even beginners can use them. In principle, it is almost impossible to do without online wallets, if you are actively working with crypto-currencies. Speaking about online wallets, you need to discuss both the positive and negative aspects of using such wallets.

First of all, they are convenient in that you can access your wallet from absolutely any device. Also, most modern online purses already have mobile customers. You can Download the application to the phone from which you will have access to the wallet. It is very convenient.

But in this way, there are also some negative factors that you must take into account. What kind? Choosing an online wallet, you should take a very responsible approach to the choice. The fact is that the company that will provide the service itself and will store all your private keys. Therefore, in case of any danger (hacker attack), all you can rely on is a good reputation and maximum securities of this particular company that provides the service.

What else should you consider when choosing your first online wallet? Most likely, choosing a trusted company with an excellent reputation in the market, you will encounter the need for verification. The fact is that most of these trusted and verified online purses will ask you to indicate your identity. For example, you may be asked to provide your address and even confirm it. Why is this happening? Therefore, in such large and severe companies, there is financial responsibility for your funds.

And as already said, the convenience of this method is so great that of course most of us still have at least one online wallet in their stock. If you are a beginner, we recommend starting with this kind of wallets.

The next kind is software wallets for computers and smartphones

Such wallets in another way or English are called Software Wallets and are assigned to a specific device that you use. Therefore, only you store private keys. Is it good, we think, yes. Especially if you keep more or less significant amounts in crypto-currencies and it is very important for you to keep them safe. Another question is that this method, like all the others, naturally has its drawbacks.

In general, there are two types of client bitcoins for computers so-called thick (heavy) and thin (light) wallets. Heavy client assumes the download of all the blocking on your computer. Therefore, you should understand that this will take a large place on your hard drive. And light clients turn to the block through third-party services. Therefore, weigh, respectively, much less.

One of the very first and trusted and so to say branded (heavy) wallets for Bitcoin is Bitcoin Core. It is considered an official client of the whole bitcoin network and is a sufficiently confidential, secure and trusted method. Also, from the light wallets can be identified the same Electrum, which has its version for both computer and smartphone.

So, go to mobile bitcoins wallets. We think that you will agree with us because a modern person has much more access during the day to his smartphone than to a computer. Therefore, of course, such mobile Bitcoin apps have become very popular.

Next, discuss the shortcomings of such Software Wallets or software purses. What is there in them is such inconvenient or unsafe, which actually can be a negative factor in their use.
On the one hand, at first, it may seem that by securing a purse for your device you guarantee to it full security. But unfortunately such a device, like any other one can be lost, forgotten or it can be trivially stolen somewhere.

Therefore, you should understand that when you consolidate your purse for a particular device, you may run into the danger of never again getting access to it.
Also, on your computer or mobile device can visit a virus that will copy your keys and subsequently access your bitcoins.

Cold storage of bitcoins (Cold Storage)

Technically, this storage bitcoins offline. When your bitcoin purse does not have access to the Internet. In principle, it’s a good idea to keep part of the bitcoins in this way, especially if you somehow got quite a lot of them. So, if you need to spend them, you just transfer a portion of this amount to any of the online purses.

In which cases under such cold storage bitcoins will be ideal? Imagine that you have a fairly large number of bitcoins that you want to keep for descendants. Of course, we exaggerate, but there are people who invest long into crypto-currencies, and this seems to be a very good way to secure comfortable old age. But in this case, you most likely will not often carry out transactions. And for this, the perfect option will be just cold wallets.

They, in turn, are divided into two types: paper and hardware wallets. First of all, let’s talk about paper purses. You did not misunderstand, and if you are the first to learn about this, then this is a very interesting point. Because your bitcoins can be printed. Of course, in fact, you are printing out the access key to these bitcoins. Such a method is well used in narrow circles of crypto-currency users. There are several services that offer services for generating paper purses, for example, PAPER WALLETS.

The next kind is a device or hardware wallets (HARD DRIVE)

With the growth of the development of crypto-economics, such devices as, for example, Ledger devices, on which it is possible to store not only bitcoins but also altcoins, are gaining particular popularity. What good are these devices? There are no viruses on them. You can store it safely enough or hide it in a safe or take it on a trip and have full and round-the-clock access to your bitcoins in a year or even several years.

The most famous to date manufacturers of devices are Trezor, Ledger, and KeepKey. So you can choose a device depending on your preferences and financial possibilities. But in principle, they all serve the same purpose.

If you still decided to keep your funds in crypto-currencies, then the most important rule for you should be diversification. This means that you must regulate and use several ways to store your bitcoins.
The most understandable and simple solutions are often the most insecure. Of course, in everyday life, it is most convenient to use online wallets or mobile purses on your smartphones. But at the same time, online wallets are most susceptible to hacker attacks, and a mobile phone along with bitcoin purse on it can simply be lost.

All this, of course, we do not speak to intimidate you. You just need to adequately assess all the factors that affect the choice of your wallet. Depending on the amount of cryptocurrency, the speed, and frequency of their use, or the prospects of this direction, you must choose a purse that is most convenient and reliable for you.

related posts

Leave a Comment