How To Store Bitcoins
How did Bitcoin and its uses become the latest craze for online transactions in various industries such as eCommerce, investments, and online betting? What is Bitcoin? Concisely, Bitcoin the most popular digital currency that allows peer-to-peer transactions without the involvement of governments, banks, or financial institutions. It is a digital fund that you can’t physically touch. Having said that, you need to learn how to store bitcoins properly if you want to own one, let alone begin betting on NFL matches with bitcoins.
Apart from buying bitcoins and selling bitcoins, a Bitcoin wallet is, of course, the foundation of it all. The key thing to understand is you won’t actually be storing bitcoins since it is digital and not an object. Rather you’ll store the encrypted address of your wallet on the blockchain–also known the public ledger. What you have in hand and should have in safekeeping is the unique key that unlocks a specific Bitcoin location. Covering the Bitcoin wallet and address, there are a few ways to store your bitcoins depending on how often and how secure you want your digital funds to be. Below are the type of wallets you need to consider in learning how to store bitcoins properly:
Types of Bitcoin wallets
Hardware Wallets – This type of wallet is by far the most secure option for keeping your valuable digital funds secure. Hardware wallets are offline storage units that can be accessed or set up without ever using the internet or exposing them to the world. These come in the form of flash drives or any physical storage and can be purchased online.
Software Wallets – These are hot wallets that only require the application of software clients to create an address. The good thing is they are available for both desktop and mobile platforms, provided that you have installed the brand’s app. Simply download, register an account, and you can store bitcoins on your software wallets right away. Take note that software wallets are only secure if your PC or mobile devices are also secure.
Online Wallets – Online wallets or web wallets are the easiest to use amongst all types of storage. These are neither physical drives that can be lost and stolen nor applications that need to be downloaded. These are websites where you can create a wallet by signing up for a new account. You can then access the wallet from any device connected to the internet. Typically, online wallets are recommended to first-time users of Bitcoin.
Paper Wallets – These wallets are literally pieces of paper containing your Bitcoin wallet and address. These are much secure than software and online wallets if you know how to keep them and much cheaper than hardware wallets if you know how to store bitcoins effectively.