How to Store Your Bitcoin

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A lot of people are concerned about one very important question: Well, before finding out the best and the most secure bitcoin wallet, we need to first understand what are the different types of wallets available and how one is better than different types of bitcoin wallets. A BitCoin wallet or any cryptocurrency wallet is just like your bank account or a place where you store your money.

A public different types of bitcoin wallets is used to send or receive cryptocurrency to your wallet. Private key is the one which gives you actual different types of bitcoin wallets to your cryptocurrency account.

Online wallets are also called web wallets. They come under the category of hot wallets. However this type of wallet have their own problems, being least secure is one of them. Software wallets are also hot wallets. They require the user to download a software on their laptop mobile or any other device. Usually software clients are available for multiple devices, especially for both mobile and desktop versions. Desktop wallets like Bitcoin Core requires the users to download the complete blockchain, which is almost GB in size.

However not all wallets require the blockchain to be downloaded. They different types of bitcoin wallets relatively easy to use too and safer than online wallets. However they have their own down sides. Also, if the data or device itself is lost, the wallet and thus all cryptocurrency you have is gone too. Some wallets provide an option for backup too to fix the issue of data loss or device loss. Yes you heard it right. Most of the online or software wallets available allow the users to print their existing keys for their wallet.

Once you have the paper wallet printed keys, you can simply use them wherever you want just by adding public-private key combination into your existing wallet service.

Apparently, paperwallet is more secure than the online and software wallets. One way is to generate multiple physical copies of your paper wallet and then place them in a secure place, to avoid getting hacked or robbed! Hardware wallets are a type of cold storage.

These are the devices which are usb shaped devices. They need to be plugged into the computer while making a transaction and can be pulled out and stored safely when done. Hardware wallets are relatively safe from computer virusus, malware and hackers as they generate they different types of bitcoin wallets keys on the device iteself. They are also easy to use and provide backup options too. The hardware wallets come with builtin security features like password protection too to avoid theft.

Hardware wallets are a very good option if you have plenty of bitcoins and regular deal with them and carry them different types of bitcoin wallets you from place to place. Now, as we understand different types of wallets and their pros and cons. We can now discuss and see which wallet suits whom and in which conditions. Divide it into more than one and be safe. Also, keep your money in online or software based wallets only when you need to frequently send or receive it.

Keep only the amount that you usually need and keep the rest of the amount in a different types of bitcoin wallets wallet like hardware wallet. What is a BitCoin Wallet A BitCoin wallet or any cryptocurrency wallet is just like your bank account or a place where you store your money.

What are public and private keys? Two main categories of BitCoin wallets We can classify all bitcoin wallets into two main categories: Hot wallet online wallets Cold storate wallet offline wallets Ok so now lets see four types of cryptocurrency wallets 1. Online Wallets Online wallets are also called web wallets.

Pros of Online Wallets Ease of use Accessible from any devide with internet connection Easy to setup Online wallets are usually linked with cryptocurrency exchanges or bitcoin exchanges online Cons of Online Wallets Private keys are saved on someone elses server More prone to hackers Prone to technical glitches Website management can limit or suspend your account anytime for any reason Website has the control over your cryptocurrency 2.

Software Wallets Software wallets are also hot wallets. Mobile apps based software wallets are quite easy to use too. Pros of Software Wallets More secure than online wallets Data is available at the users own computer or mobile device Easier to backup yourself You have control over your cryptocurrency Cons of Software Wallets Wallet is lost if device is lost Hackers can hack the computer different types of bitcoin wallets mobile and gain access to wallet via different types of bitcoin wallets Requires some technical know how 3.

Paper Wallets Yes you heard it right. How to generate paper wallet? Pros of Paper wallet More control on your wallet More secure than online and software wallets Can be stored and taken care of without internet connection or holding on to a computer or mobile device Cons of Paper wallet Can get damaged with time Get get stolen physically Different types of bitcoin wallets copies to prevent damage make it more prone to being stolen Need more technical knowledge to generate and then use the paper wallet 4.

Hardware Wallets Hardware wallets are a type of cold storage. Small and frequent transactions: Online wallets or Software wallets Cryptocurrency exchange: Online wallet but only the amount that you play with Occassional big different types of bitcoin wallets Hardware wallet Storage only: Which wallet do you use?

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Types of Bitcoin wallets Bitcoin is an anonymous payment network, introduced in Within these years, Bitcoins rose in popularity extremely.

Value of Bitcoin is constantly jumping up and sinking down. Bitcoins are now used to pay for a lot of services just as real money. Many services started to accept Bitcoins as a payment method: Reddit, Baidu, Humble Bundle, Foodler, etc.

Similar to real money, you need to have wallet to store Bitcoins. The difference is that in Bitcoin wallet you store not actual Bitcoins, but private keys. In cryptography user generates 2 keys: Private key is used to decode information which is encrypted in the public key. So public key can be widespread freely, while private keys are to be stored in the secure place wallet. Public keys can be used to accept Bitcoins, so users can send you funds, while private key can be used in case you wish to pay with your Bitcoins or transfer your funds.

To store Bitcoins you can use one of the next 3 types of wallets: Online wallets are dedicated to store your digital keys on the Web. It means that Bitcoin wallet is stored not on your computer, but on some faraway server of service provider. There are different online wallet providers. And depending on the provider, features of Bitcoin wallet can vary.

Some online wallets are created with minimum features, while others can be used as a full-featured Bitcoin wallet. The main advantage of online wallet is that it enables you to enter your wallet in any place of the world. Online wallets are very easy to start using and have simple interface.

Disadvantage of this kind of wallet is security. When you trust your wallet with private keys to online service, there can be 2 cases you should be afraid of: To safeguard Bitcoins stored online a so-called hybrid wallet was created.

In this wallet you can encrypt your private keys in your browser before sending them to the server. So there are only encrypted keys are stored, and no one can get hold of your information. The second type is mobile wallet. It is almost the same as online wallet, but it is supported by mobile device.

So security of storing Bitcoins in mobile wallet comes in question. Whatsoever, mobile wallets are very useful if you wish to make payments when you are in the street and away from any computer. The main advantage is convenience, of course. It is possible to pay in stores at POS locations of course, in case merchant supports such kind of payment. However mobile wallets are not full Bitcoin clients. Desktop wallets are installed on your computer.

These are full-featured Bitcoin clients, with the the highest security level and the widest variety of features. Once you install this wallet on your computer you need to update it by downloading all blockchains which were created from the very beginning. This can cause some difficulties in using desktop client, as it takes time to download gigabytes of blockchains. Of course, it is recommended to have powerful hardware if you wish to run desktop client.

Currently desktop wallets are the most secure way of storing private keys. Some of them even allow users to have a paper wallet in which private keys can be stored. This feature is dedicated to store private keys on the paper or any other offline storage to prevent private keys from being hacked by a person or virus. Once you understand that you need to create Bitcoin wallet, it is better to decide first how would you use it? There are plenty of Bitcoin wallet providers offering different features.

So spend some time to learn more on this question and choose wisely. All in all it is more appropriate to store Bitcoins in desktop wallet with the highest level of security and have mobile wallet in order to spend some Bitcoins when you are out in the street. Our technical platform is dedicated to provide quality and fast service.