Bitcoin is the face of digital currency; through its work on blockchain technology that is not easy to break, hackers use all their might and can damage the keys or even change the direction of transaction in between. With the increase in internet theft or hacking and other things, investors are looking for the safest ways to store Bitcoins. But before, Users need to know specific security issues. They are:
- Every method leads to some issues; the user needs to understand what works best for his/her.
- Backup of data is necessary. Private security keys need to store safely and backup safely in case of theft, emergency, or forgotten so that it is easy for the user to recover.
- From time to time, an update of the software helps to keep abreast with security threats.
- It can also be secured by multi-signature so that copying or loss of data is stalled. Losing the data can hence be stopped.
Safest way of storing the Bitcoin
Investors need to know the safest ways of storing bitcoins. They are:
- Hardware Wallet: One can share Bitcoins in hardware devices that are not connected to the computer all the time. That way, it is easy to carry and give the user access to anytime and anywhere. It is safest as hardware devices are less prone to malware and easy to recover the data. The only disadvantage is the loss of the device. If the device gets lost or theft, there is no chance of recovering the Bitcoins.
- Desktop Wallet: Desktop Wallet is also known as the Cold storage method, often stored on the desktop computer or private computers not connected to the network. The computer system remains locked by private security keys that hold in that machine. It helps the user to be safe from their Bitcoin from online theft. But the low point is if the computer gets infected from malware specially designed for theft, the chances of Bitcoin stolen can be there. Another low point is it can’t be accessed at anytime and anywhere.
- Digital Wallet: For quick and easy access, a digital wallet works best. Private keys are secured online through software, which usually stores user information and is accessible through smart devices. It is suitable for online, anytime, anywhere transaction, still has the risk of online theft or hacking.
- Paper Wallet: If the user understands Bitcoin’s working, he/she can store Bitcoin in the form of a paper wallet with the help of dedicated websites. It is easy to store and comparatively great anonymity. They are like Bitcoin seeds or code printed on the paper, which is not easy to understand.
- Bitcoin Physical Coins: There are now many services which help the user to convert Bitcoin into a physical coin. It has a tampered proof sticker with private keys engraved on it. Many companies have introduced bitcoin coin in different forms, made of the brass inside and gold outside or also in pure gold form. The user has to pay an extra premium for buying in physical form.
There are many ways of storing bitcoins, and many more are coming on the way. For safely storing and spending, users need to pick up the choice as private keys secure them. Still, the loss and theft are the primary concern as hardware wallet can be a right choice as they are easy to carry and less subjected to any issues whereas digital wallet is easy to use and spend risks to thefts.