Folks who intend to own bitcoin now or in the future must find somewhere to store them, and the place where bitcoin is stored is called a wallet. Folks should know that the wallet does not hold their bitcoin but holds the private key that enables them to access the address of the bitcoin.
It should also be noted that a bitcoin wallet usually holds lots of private keys. Therefore, a good number of bitcoin investors make use of several wallets.
These wallets can be on your computer or mobile device, or can also be contained in a physical storage gadget, and sometimes, on a piece of paper.
Paper wallets are simply pieces of paper on which the public and private keys of a bitcoin address are printed. They are secure as they are part of no network but can be misplaced easily.
We’ll be taking a look at some of the reliable ways to store your bitcoin. Do well to take note of the methods mentioned and explained below.
This is one means through which bitcoin can be stored. These wallets can be downloaded as software or hosted in the cloud.
The downloaded software is a formatted file that is stored in a computer or device and enhances transactions, whilst the hosted wallet offers a user-friendly interface but sees a third-party being trusted with your private keys.
This wallet is installed on your computer and enhances security as you’ll be the one in control of your private keys.
A good number of these wallets come with easy configuration and are available for free. These wallets can come in handy as payment options when you pay for games in a reputable online casino. You can sign up here and enjoy a worthwhile experience at a reputable online casino, thanks to bitcoin wallets.
However, one downside is that maintenance has to be carried out in the form of backups in case your computer is misplaced or corrupted, and there are no other places where your private keys are stored. This would be a big loss. This method requires you to be very security conscious.
Mobile wallets can be downloaded as apps on your smartphone and come in handy when you want to pay for something in bitcoin and buy or sell when you’re on the move.
The accessibility for users is top-notch and unrivaled. Almost all online wallets have mobile versions whilst others are strictly mobile versions.
Online wallets, also known as cloud-based wallets come with increased convenience and allows you to access your bitcoin from your device from anywhere if you have the right password, although internet connectivity will be required.
They can be easily set up and come with a variety of mobile and desktop apps that enhance the way you spend and receive bitcoin. Most of them are free too.
One demerit of this method of storing bitcoin is security. One might ask, how so? Well, your bitcoin’s private keys are stored in the cloud and you’ll have to rely wholly on the host’s security measures for the safety of your private keys that are stored in the cloud, as well as trust that they won’t shut down and abscond with your funds.
Regardless, some of the leading online wallets in the industry are attached to exchanges like Blockchain and Coinbase while others have added security features such as offline storage, namely, Xapo and Coinbase.