Bitcoins and where to store them
When it comes to the question of where to store Bitcoins, there is a variety of options. By now you probably know that Bitcoins are stored in some sort of a Bitcoins wallet but the question to be asked are what are your options? Which is more secured? And which is more reliable?
Well, ask no more! here is a list of the best options avalable:
Wallets are divided to two kinds - Cold and Hot. Any wallet that reside on a computer/smartphones or any other device that has internet access is considered to be a hot wallet while all other solutions that have no access to the internet are considered as cold. In a security perspective, hot wallets are considerd to be the less secured option.
Online wallets are provided by Bitcoin exchanges and online wallet companies. You can open an online wallet at any cryptocurrency exchange such as Coinbase and CEX.io or you can open an online wallet at an online wallet service such as blockchain.info. All of these options are free of charge.
Online wallets can be accessed only from the internet thus considered to be less secured than any cold wallet solution. It is recommended to protect your online wallet with some sort of a two factor authentication solution, the most recommended one is google authenticator.
The usage of smartphones for everyday tasks makes mobile wallets a convenient option.
Bitcoin Wallet is another popular mobile wallet.
Desktop wallets are very easy to download and use, you can use them even if the computer is offline which make them even more secure. Armory is the most recommended desktop wallet, mostly because it supports a wide variety of operating systems.
Hardware wallets come as secure USB tokens that you can plug into your computer, transfer funds and detach. Ledger and Trezor are becoming more popular but there are many other options out there.
Paper wallets are a printed copy of a Bitcoins wallet. you can easily print and store them in a secure location for safekeeping. You can use Bitaddress.org or Blockchain.info to create a paper wallet.
While there are many options to store your bitcoin, you must remember that security should be your main interest.
Avoid having large funds on a hot wallet. If you intend to trade other cryptocurrencies, you should have the majority of your funds on a cold wallet and leave only the portion you plan to trade on a hot wallet.