Bitcoin is the talk of the town among investors, traders and tech enthusiasts alike. Even in 2021 the cryptocurrency has reached new heights and is poised for unprecedented growth.
One thing you should know about Bitcoin and cryptocurrency is that it can be stored, just like a fiat currency. The digital asset can be put into a ‘wallet’, to which there are several kinds.
Let’s explore the safest ways to store Bitcoin and protect it from hackers, security breaches and hardware failure.
Hot Wallet
A hot wallet is a software or web-based digital holding storage solution for Bitcoins and crypto coins. Internet-connected devices such as smartphones or computers are usually used to this end.
Whenever you need to make a purchase or a trade, you can access the hot wallet and have it generate a special private key that will be used in the transaction. The upside to this is that you can make transactions faster and it’s more convenient. However, since it’s basically a software it’s vulnerable to hacks, malware, viruses and the like.
It’s certainly possible to have your Bitcoin funds stolen, and as such it’s not recommended to put all your assets in them. A good rule of thumb is to transfer enough Bitcoins so you can make a purchase and have it ready when that time comes.
Bitcoin trading is a popular investment scheme for 2021, and there are platforms that offer to ‘hold’ your Bitcoin while you buy and sell crypto. These sites offer a slew of security features as you trade your digital assets. However, it’s always best to store the ones you won’t need somewhere else. Visit this site to trade Bitcoin and make a profit today.
Cold Wallet
A cold wallet is a hardware-type holding storage for Bitcoin and other cryptocoins. They’re considered by many to be the safest storage solution because they’re similar to safes and lock boxes.
Hardware wallets are typically sized like a hard drive or flash drive and contain the technology to store your Bitcoin in a private key and address. Like a hard drive you can connect it to a computer when you need to make a large transaction or refill your hot wallet.
In the same vein there are paper wallets that contain the keys and address of your digital asset. They’re printed on paper, which is practically immune to viruses and all kinds of hacking attempts.
Unlike hot wallets, cold storage will require a bit of a know-how to properly set up. Serious investors and Bitcoin holders will have to go through the process if they want their money secured and safe from digital attacks.
To ensure that your level of protection is of the highest level it’s recommended to install software updates as soon as they appear. These wallet software will usually implement better security and will have fixes for the latest vulnerabilities. Sign up for two factor authentication if possible and back up your keys and addresses often. You’ll have peace of mind knowing your investment is in safe hands.
