Today, around 22% of American adults have a share of Bitcoin. Cryptocurrencies have exploded in popularity in the last few years, and they’re not going anywhere. In fact, financial analysts predict that the global blockchain market will grow by $39.17 billion by 2025!
This means that if you don’t have a share yet, you should buy, pronto. And considering this is a huge investment, you need to practice good Bitcoin storage so criminals don’t get their hands on it.
Don’t know how to store Bitcoin securely? Then keep reading, as we’ll show you all the best Bitcoin tips!
How to Safely Store Bitcoins
After you’ve purchased Bitcoin, such as from a Bitcoin kiosk (read more here), you’ll want to transfer it immediately to a wallet. Otherwise, they’re just floating around in a temporary wallet.
There are 2 types here: hot and cold.
Hot Wallets
Hot wallets are those connected to the internet, so you can access them through smartphones, tablets, and computers. The types of hot wallets include desktop, mobile, and web.
It’s very convenient because you can quickly access your Bitcoins and make transactions.
However, the drawback is they’re not very secure. So you might want to look into cold wallets instead.
Cold Wallets
As you might’ve guessed already, cold wallets aren’t connected to the internet. This makes them the more secure type.
You’ll have to hold a physical wallet that looks like a USB drive. To access your Bitcoins, you’ll need to plug the device into a computer and input your private keys.
While cold wallets are more secure, they’re more of a hassle to use. Also, if you lose your private keys, you’ll lose access forever.
Which Wallets Are Right for You?
As you can see, each type of wallet has its own pros and cons. The fact is, the best solution is to use both.
Think of it this way: your hot wallet is your checking account where you can easily withdraw and deposit money, so you don’t want to keep the balance too high. On the other hand, your cold wallet is your savings account where you keep the bulk of your investments.
When choosing the type of hot wallet to use, avoid web wallets, as they’re the least secure. They’re more prone to malware and phishing, and some third-party services may run away with your crypto.
Desktop and mobile wallets are much better choices since a third party’s not holding your Bitcoin for you. Mobile wallets can be ideal since you can make quick payments by scanning QR codes.
Know How to Store Bitcoin Safely
Now that you know how to store Bitcoin securely, you’ll be able to use this crypto with ease and peace of mind.
The best solution moving forward is to use both hot and cold wallets, with the majority of your Bitcoins in the latter. Only put a small amount into your hot wallets to ensure your investment stays safe from prying hands.
For more information about cryptocurrencies, take a look at the rest of our blog.
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