How to store your Bitcoins How to store your Bitcoins

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How to store your Bitcoins

updated on:7 May 2020

Before you own any bitcoin, you need a place to store it. That place is called & quot; wallet & quot ;. Instead of actually having your bitcoin, you own the private key that allows you to access your bitcoin address (which is also your public key). If the wallet software is well designed, it will seem that your bitcoins are really there, which makes using bitcoin more convenient and intuitive.

Actually, a wallet generally has multiple private keys, and many bitcoin investors have multiple wallets.

Wallets can live on your computer and / or mobile device, on a physical storage device, or even on a piece of paper. Here We will briefly see the different types.

Electronic wallets

Electronic wallets can be downloaded software or hosted in the cloud. The first is simply a formatted file that lives on your computer or device, which makes transactions easy. Hosted (cloud-based) wallets tend to have an easier-to-use interface, but will trust you. on a third party with their private keys.

Paper wallets

Perhaps the simplest of all wallets, these are pieces of paper on which the private and public keys of a bitcoin address are printed. Ideal for long-term storage of bitcoin (away from fire and water, obviously), or for gifting bitcoin, these wallets are more secure since they are not connected to a network. However, they are easier to lose.

With services like WalletGenerator and BitcoinPaperWallet, you can easily create a new address and print the wallet on your printer. Fold, seal and you're done. Send some bitcoin to that address and then save it safely or give it away.

Hardware wallets

Hardware wallets are small devices that occasionally connect to the web to conduct bitcoin transactions. They are extremely secure as they are generally offline and therefore cannot be hacked. However, they can be stolen or lost, along with the bitcoins that belong to the stored private keys.

& iquest; Are bitcoin wallets secure?

That depends on the version and format you have chosen, and how you use them.

Paper wallets

Perhaps the simplest of all wallets, these are pieces of paper on which the private and public keys of a bitcoin address are printed. Ideal for long-term storage of bitcoin (away from fire and water, obviously), or for gifting bitcoin, these wallets are more secure since they are not connected to a network. However, they are easier to lose.

With services like WalletGenerator and BitcoinPaperWallet, you can easily create a new address and print the wallet on your printer. Fold, seal and you're done. Send some bitcoin to that address and then save it safely or give it away.

Hardware wallets

Hardware wallets are small devices that occasionally connect to the web to conduct bitcoin transactions. They are extremely secure as they are generally offline and therefore cannot be hacked. However, they can be stolen or lost, along with the bitcoins that belong to the stored private keys.

& iquest; Are bitcoin wallets secure?

That depends on the version and format you have chosen, and how you use them.

The safest option is a hardware wallet that you keep off-line, in a safe place. That way, there is no risk that your account can be hacked, your keys are stolen and your bitcoin disappears. But, if you lose your wallet, your bitcoin will disappear, unless you have created a clone and / or saved reliable backup copies of the keys.

The safest option is an online wallet, it is very familiar and convenience versus security.

 

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