Safe Storage Options for BTC
Bitcoin is one of the most popular cryptocurrency right now. Its notable bull run after the halving in May has resulted in a significant surge of the price in 2021, surpassing their previous all-time highs. Actually, Bitcoin has topped $40,000 in January 2021. This means that the massive Bitocin rally continues in 2021.
So, naturally, a lot of people were looking to obtain BTC. But, one of the most important steps of investing in BTC is choosing a safe storage solution for your BTC. In this article, we compare different storage options for your BTC.
Bitcoin wallets are required for anyone that wants to get BTC and make payments in BTC. There are different options when it comes to wallets, including web, mobile, desktop wallets, and hardware wallets. The mutual thing about Bitcoin wallets is that they have a private and public key that are required to make BTC payments.
The private key is stored in your wallet, and in order to complete the transactions, you need a private key that is used directly to sign the transactions. If you have a digital wallet, the private key is generated by the software when a transaction is initiated.
Otherwise, the public key is required to receive payments, and it also identifies the Bitcoin wallet, but it is not linked to your personal data. So, essentially your public Bitcoin address is generated as a hashed version of the public key. Thus, it's very important to choose a secure wallet.
Types of Wallets
But, there's also another factor that you need to consider when you're choosing a Bitcoin wallet, and that's how you're planning to use your BTC. Do you want to trade online? Or, you want a safe wallet that allows you to easily shop offline and online?
So, if you want to invest in BTC on online trading sites, then a good option would be to consider getting a web wallet. You can quickly access your web wallet through the browser on your smartphone, tablet, and desktop device. However, the downside of getting a web wallet is that your private and public keys are stored on a remote server of the provider.
Hence, you need to carefully pick a trusted brand because your keys are essentially stored online. Besides, you also need to choose a reputable trading site where you can buy and sell BTC for other cryptocurrencies. For example, if you're a beginner, make sure to also pick a site that features resources that will help you learn more about trading and cryptocurrencies.
A great site is Bitcoin Revolution, an automated trading platform that utilizes a powerful combination of Artificial Intelligence and blockchain technologies. You can trade Bitcoin here and potentially obtain up to $1500.
A mobile wallet is very convenient because it is installed as an app on your smartphone. So, you can easily make payments when you shop offline, for example.
There are a lot of choices for both iOS and Android mobile devices. Lastly, the desktop wallet is perceived as a safe choice because the software is installed on your computer. The risk again is computer viruses, but it is a safer option than mobile and web wallets. However, it isn't convenient as the other options.
Cold Storage Options
It should be noted that the so-called 'hot' wallets that are connected to the internet are more affordable than cold storage options. If you use multiple Bitcoin wallets online and want to back up your BTC using a solution that isn't connected to the internet, you need a cold storage option.
This is a very simple storage option where your private and public keys are usually printed on a piece of paper along with a QR code that you can use for purchase via your hot wallet. Actually, the QR code can be added to the software wallet. But, you will need to find a safe place for your paper wallet because if anyone finds it, they can quickly access your funds.
This isn't a popular or widely used option. But, you can still take it into consideration when you're making your decision. Basically, your wallet's private key is encrypted as an audio file on a CD or, in some cases, vinyl. The only way to access the private key is by using a spectroscope app.
Finally, this is regarded as a secure option, and it is quite popular among investors that want to have complete control over their assets. The hardware wallet is a USB drive where your private and public keys are stored. This means that your keys are safe from unauthorized access and computer viruses. But, again, you have to make sure you have a safe location for your hardware wallet.