Even though cryptocurrencies like Bitcoin are not a physical thing that you can withdraw from an ATM, you do need a place to store this money. After all, it does not just blindly float around the internet waiting for you to access it. You need a secure place to store your stash of Bitcoin or any other cryptocurrency. Storing cryptocurrency is essential to success if you are going to engage in any kind of cryptocurrency transactions. This storage device is commonly referred to as the wallet. The wallet is where you store your personal cryptocurrencies. Now, there are different kinds of wallets out there, each of have different properties, some being better and more secure than others. It’s time for us to talk about everything you need to know about storing your cryptocurrency in your personal wallet. Storing Cryptocurrency – The WalletThe wallet, like we said before, is the place where you store your Bitcoins and other crypto-coins. Since Bitcoin and other currencies of this sort are not ensured by any banking or insurance institution, any wallet you use absolutely needs to be 100% secure. There are various ways of ensuring that your wallet is secure, with one of the main ways being with a key code or a password in layman’s terms. You and only you have access to your wallet through your personal key code. This is indeed very secure, but it can also pose some problems. If you lose your code, you will have no way of accessing your wallet. Not having access to your wallet means that those coins are forever lost in the infinite sea of the web. You will never see those coins again if you lose your password. Also, these passwords or key codes can be stolen via hacking. If someone else gets a hold of your key and your wallet info, they can easily take all of the coins out of the account. This is why it is essential to never share your key with anybody. Storing Cryptocurrency – Different WalletsThere are various storage methods that you can use to store your cryptocurrencies. The first type of wallet is the online web wallet which keep private keys secure on their servers. These online web wallets such as like Blockchain.info work pretty well, but they do come with certain risks of theft and hacking. However, they do not require you to have any personal storage space on your computer or otherwise. Next, there are hot wallets. Hot wallets are apps or programs that you have on your computer or smartphone, which connect through the internet. These application based wallets can be used to make transactions and to store small sums of cryptocurrencies, but they cannot be used to store the entirety of your cryptocurrencies. Both of these methods work just fine, but they are not the most recommended. When it comes to storing cryptocurrency, we would recommend using a form of cold storage. Cold storage means that the coins are not stored on some kind of online cloud-like system or web based server. One of the most popular and secure cold storage methods is to simply use a USB drive, external hard drive, or some other such storage device. It’s easy, safe, and secure. Next, there is a thing called the paper wallet, which more or less resembles a bank note. This is actually just a piece of paper containing a password or code for redemption. They contain a certain amount of Bitcoins or other cryptocurrency, and once you enter the code to gain access to them. This method is not recommended as it is one of the less secure methods of storing cryptocurrency. Next, there are also physical Bitcoins, which holds the Bitcoin’s public address and they key. These can come in the form of something that resembles a credit card and recently have taken the form of actual coins. Perhaps the most secure way of storing cryptocurrency is with a specialised cryptocurrency offline wallet. These resemble USB drives, but are designed with special security measures and are designed specifically to store Bitcoin and other cryptocurrencies. Most people would recommend using an offline hardware wallet as they tend to be the most secure of all. These are often refereed to as ledgers, with the more advanced versions actually having their own displays so you can check the balance without connecting it to your computer. All of the above listed storage methods are viable options, but some are better than others. Storing Cryptocurrency – Traits Of A WalletChoosing which version and type of crypt-wallet you use can be a little difficult. Let’s go over some of the most important traits that you should look out for when choosing your own wallet for storing cryptocurrency.
Storing Cryptocurrency – Some Recommended WalletsLet’s take a look at some of the best, most modern, and most convenient options to go with for storing cryptocurrency.
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