HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

How To Store Bitcoin Safely: Crypto Wallets Explained


Bitcoin is booming once again, and everyone is rushing to learn all they can about the leading cryptocurrency by market cap. One of the biggest challenges Bitcoin and crypto investors face, is making a decision on where to safely store any coins for the long or short-term.

Depending on the need, more than one type of cryptocurrency wallet might be necessary. This guide breaks down all the different types of Bitcoin wallets, which type of wallet security is the best, and which are the safest Bitcoin wallets to select for storage.

Introduction To Bitcoin And The Basics Of Blockchain Wallets

Bitcoin is the first ever cryptocurrency and with it came the creation of blockchain technology. BTC is the crypto asset that lives on the Bitcoin blockchain network. The technology was designed to allow users to be their own bank, which means they must control and self-custody their own assets. This takes some technical expertise, however, several solutions have emerged over the years that allow users of crypto technology to easily interact with a secure Bitcoin wallet on the blockchain through an app or desktop interface.

Before you decide to buy and store Bitcoin yourself, you will want to familiarize yourself with the various sections outlined below in this guide.

What Is The Best Way To Store Bitcoin? Safely Storing BTC

The best way to store cryptocurrency is always the safest method, and in this case it is more often than not through an offline storage device referred to as cold storage. However, a cold storage device means you cannot easily access crypto assets for yourself.

As you can see, an offline wallet isn’t always convenient. If there’s a major crash, or you suddenly need to access your coins, it takes several steps and much more time.

Digital Coins

It is important to understand that cryptocurrencies like Bitcoin and Ethereum are digital coins or virtual currencies that exist only via the internet on the blockchain. The benefit of digital coins is that they can be moved easily, transferred to and from with speed, and tend to cost less and take up no space.

Physical Coins

Even though when we’re talking cryptocurrencies, it is almost always digital coins, there are also some physical coins too. These physical coins, however, are simply metal “coins” that include a QR code or some other means to access a blockchain wallet.

Storing Coins On An Exchange

Storing coins on an exchange is often considered a no-no due to all of the hacks everywhere in the crypto industry in 2018. But the industry has matured since, and exchanges have learned to take additional steps to prevent hacks. So long as the platform has a reputation of reliability and proper security procedures, storing coins on an exchange can be safe.

What Is A Cryptocurrency Wallet? The Solution To Storing Crypto

A cryptocurrency wallet is an interface designed to allow access to the blockchain to easily move coins to and from the wallet. Each wallet consists of a private key and public key acting as the address. However, there are so many different types of wallet systems to choose from, from the most basic to extremely advanced.

Types Of Cryptocurrency Wallets Revealed And Explained

Here’s an exhaustive list of the various types of crypto wallets, their individual advantages and disadvantages, as well as explaining the different ways each wallet system works.

How To Keep Cryptocurrency Safe? Going Beyond Wallets And More

Storing assets in a wallet is obviously how to keep cryptocurrency safe, but you can go above and beyond choosing the right wallet to further protect yourself from the risks associated with storing cryptocurrencies like Bitcoin and Ethereum. Personal operational security is a must. Hiding personal details to stay anonymous whenever possible is best for the safety of assets. Users cannot be made a target if there’s no evidence that they own any crypto assets.

Hackers don’t target users randomly or for no reason. A history of bragging about assets online is one red flag that hackers can use to target unsuspecting crypto investors. Hackers can also target based on the platform, so selecting the right platform or wallet system is the most important. Take this as a reminder to never disclose to anyone that you hold any crypto assets whatsoever.

Keeping the bulk of assets in offline cold storage is recommended, but not convenient so keeping a small portion of crypto in a separate secure cryptocurrency wallet on a trusted and reliable platform like PrimeXBT is an ideal way to still have relatively quick and safe access to funds. Never invest more than you can afford to lose, and take extra steps for safety. Users should install malware protection, double and triple check any and all addresses before sending, and to make sure all computer software is updated at all times for the best possible security.

Use a VPN if possible, only use two-factor account authentication that relies on Google over SMS to avoid SIM-swap attacks. Keep an eye peeled for anything that looks off, such as Phishing sites. Platforms never ask for a username and password. Double check the URLs of any sites you’re visiting before interacting with crypto assets.

Even if you do all of this, there’s always a risk of loss associated with digital assets. A hacker could be that good, learn to crack cold storage, or some other strange incident could occur. Anything is possible, so be ready for anything at all times as an investor.

Bitcoin Wallet FAQ: Commonly Asked Questions About How To Store Bitcoin

Bitcoin, blockchain, wallets – it can all get a little confusing even after reading this guide. Refer to this FAQ whenever you have questions, where we’ve aggregated all of the most commonly asked questions about Bitcoin wallets and storing coins safely.

Do I Need A Wallet To Buy Bitcoin?

Yes and no. You will need a wallet to store the BTC you buy, but in most cases the platform will automatically generate the wallet for you at the time of purchase. Therefore buying any Bitcoin should result in a free wallet to use. From there, you can send the BTC, or store it.

Where To Store Bitcoin?

Storing Bitcoin should involve a cryptocurrency wallet. The safest solution is a cold storage wallet where assets are kept offline at all times. Hot wallets always access the internet making them riskinger to store assets on.

How To Protect Your Bitcoin?

Protecting your Bitcoin first and foremost starts with the right wallet or platform that can protect it for you. Next, it involves the investors keeping their personal finances to themselves, and being extremely careful about personal and private data that can be used to access financial accounts.

How To Safely Store Bitcoin?

Storing Bitcoin safely involves a cold storage wallet solution, or relying on an award-winning trading platform’s internal wallet system.

How To Store Bitcoin Offline?

Storing Bitcoin offline involves a cold storage wallet. These are usually a USB device or some other type of hardware. 

#source


RELATED

Trading the FTSE All Share Index

The London Stock Exchange (LSE) is one of the oldest and most important financial institutions in the world, and in case you have heard of the...

Gold at 8 years highs. Why so and who will benefit from it?

The business of storage operators with a high level of security, in which physical, not virtual, metal is stored, is in a boom of demand from wealthy investors...

Most Trending Currency Pairs in 2022

Are you one of the many beginners in online trading who are struggling to understand even the basics of the markets? Don’t worry, we know the feeling. One of the most common reasons why people hesitate to start trading...

What US stocks can grow during coronavirus pandemic

Unprecedented sell-offs in global stock markets led the S & P500 to fall by more than 30%. The Dow Jones Index fell more than 35%. Given the increased volatility, at the moment of a mood...

EOS: Where Will 2021 Take This Coin?

If you've considered adding cryptocurrencies to your trading strategy or investment portfolio, you've likely come across EOS. Is this altcoin worth your while?

How to Get into Online Metal Trading with IronFX?

The most popular precious metals in metals trading are gold and silver. The latter is strongly linked to the main currencies and the world economy as a whole. Precious metals have long been...

Position Sizing Using the Risk Reward Ratio

Position sizing involves making an objective decision about...

TOP 10 Effective & Profitable Forex Advisors in 2020

Automated trading systems are an opportunity to create passive earnings in the financial markets for all users. Successful and proven strategies...

US Stock Indices: The Past and the Present

There is a saying in the world of finance: "America will sneeze, but the whole world will catch a cold." But what is the way to determine how serious...

Best Forex Expert Advisors for Profitable Trading in 2022

As many of you know, the foreign currency markets are open for trading 24/5, which makes it very hard for a human to keep track of everything that's going...

Margin Call: What It Is & How to Avoid It

You have probably heard about an unpleasant surprise to traders: a margin call. And we hope you do not know how bad it might be for your money. A margin call is a broker’s demand...

Can you make money with crypto arbitrage?

Crypto arbitrage is the practice of and methodology behind taking advantage of price fluctuations in the price of various cryptocurrencies, such as Bitcoin or Ethereum. These variances...

What are cryptocurrencies and how do they work?

Nowadays, cryptocurrencies have become a worldwide phenomenon that most people have heard about. Although somehow they are still unusual and are not understood...

Delving into the Webs of Influence: Dissecting the Role of Past Performances in Sculpting Future Achievements

In the continuously evolving sphere of human endeavors, the relentless quest to decipher whether the footprints of past performances imprint on the sands of future successes remains a focal fascination among scholars, analysts, and industrial protagonists...

How to make money on meme stock?

Meme stocks are shares that gained popularity and achieved a cult-like following on social media. As a result, private investors in online communities can create hype and influence the price of individual shares...

How to Trade Indices? A Useful Guide

To begin with, indices are a way to measure the performance of a specific group of assets, like stocks, including their prices. Famous indices are basically...

What Is Spoofing in Crypto Trading?

Spoofing is a way to attempt to manipulate the market in your favor. If you spend any time trading, you will eventually hear the term “spoofing.” Spoofing is illegal...

What Makes Bitcoin Unique and How Is Bitcoin Traded?

Bitcoin is a global digital currency based on distributed computing instead of gold and banks. At the time of this writing, Bitcoin is the world's largest digital currency...

Secrets of trading by Fibonacci levels

It is difficult to find a trader, even among newbies, who have never heard of Bill Williams - the developer of effective indicators integrated into almost every...

Deepen your Understanding of Crypto Trading

Cryptocurrency trading, or more briefly crypto trading, is simply the exchange of cryptocurrencies. Just like in Forex, you can buy and sell one cryptocurrency for a fiat currency...

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.