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What Are the Safest Storage Options for Bitcoin?

    Just like you tuck your credit cards and cash away inside your wallet, in the same way, you need to store your Bitcoins properly too. For this purpose, digital wallets have been developed. They keep cryptocurrency secure and safe from theft and hacking.

    These digital wallets are actually pretty accessible for the owners too. You can store them on your desktop computer or mobile device. Some people also like to print out access keys and addresses on paper for even more security.

    Want to know exactly how such digital wallets keep your hard-earned crypto coins secure? Well, the user’s security precautions dictate how secure the cryptocurrency will be. This is why it is important to learn more about digital wallets and proper security measures.

    You need your private keys to access the cryptocurrency you own in your digital wallet. Usually, these private keys are stored inside the wallets so that no one can access them at all. There are different types of storage options for Bitcoin currencies that you should definitely look into.

    1. Hot Wallets

    Online wallets are often called hot wallets. These wallets work on any device, as long as it has an internet connection. This makes it easier to use since you can access it through tablets, smartphones, and PCs.

    However, many people may not fully trust hot wallets because the private keys to access them are stored in devices connected to the worldwide web. This increases the risk of hacking and theft. Users that don’t apply proper security measures to their hot wallets will find that the increased risk of getting the assets stolen can be quite a headache.

    But these hot wallets are quite convenient when it comes to accessing your funds from anywhere on the planet. Hence, these hot wallets are perfect for people who don’t own a lot of cryptocurrencies.

    Hot wallets are quite similar to traditional bank accounts. So, just like a bank account, you should ensure that all of your spending funds are stored in easily-accessible checking accounts while the rest are stored in investment or savings accounts.

    2. Cold Wallets 

    Cold wallets provide the safest storage option for cryptocurrencies. They aren’t connected to the internet, so the risk of hacking or theft is lower. This makes them way more secure than hot wallets. Cold wallets are also called offline or hardware wallets.

    Cold wallets store private keys and addresses on a platform that doesn’t connect to the World Wide Web. The software continues to run so that you can also access your portfolio and all the money you are earning without risking the private keys from getting hacked or stolen. You can start your bitcoin trading journey with the trading platforms like the crypto genius website

    It is definitely true that paper wallets are definitely among the best ways to store Bitcoin since it is completely offline. These cold wallets are available on many different websites that you can easily download. The wallet will generate a public and private key so that you can print them out on a piece of paper and keep it safe. We do recommend laminating the paper wallet so that it doesn’t get damaged and storing it away in a safe at home or a security deposit locker at the bank.

    These wallets are basically just USB devices that store private keys. Compared to hot wallets, they are more secure because they don’t actually get exposed to any susceptible software or devices connected to the internet. This makes it basically immune to getting hacked or viruses.

    Cold or offline wallets do require a little bit of expertise on behalf of the user, even though they are the safest storage option. Understanding the basic differences between hot and cold wallets is important if you are interested in holding crypto coins.

    3. Physical Coins

    You can also purchase physical coins for Bitcoin with plenty of online services. You will receive a label that is designed to eliminate tampering. The coin you purchase will cover a specified Bitcoin quantity when you buy it. However, there are some additional costs that you need to pay for, such as transport costs and the production costs of the coin, that translate into a small fee.

    Make tracking the Bitcoin currency even easier with a proper tracking site and keep your coins safe in a digital wallet!