The Safest Way to Store Your Bitcoins - For Beginners

Bitcoin is a cryptocurrency that is not only a digital asset but also a convenient mode of making payments. The decentralized nature of this digital currency has made it a popular payment option worldwide. Since it is difficult to keep this currency from being stolen, lost or compromised by any other means, you must have a proper place to store it. The safest way to store your Bitcoins is a wallet file.

Wallet File

A wallet consists of ECDSA keypairs. A keypair comprises of a public key which is known to all and a private key that remains with the holder. The messages are encrypted using the public key in such a manner that only the concerned private key holder can decrypt them.

Types of Wallets:

Desktop Wallet

Technically named as Electrium, desktop wallets lets you use the same seed to open multiple wallets simultaneously. The best part is that you don’t need an internet connection to create and sign transactions while using this wallet. You can download “root public key” that you can use in your mobile application to monitor the wallets anytime anywhere.

iOs Wallet

It is popularly known as the Breadwallet. It is a storage that keeps your Bitcoin keys safe on your phone and also allows you to control your funds. It is one of the best ways of storing your Bitcoins as it uses either your fingerprint or passcode to get locked and unlocked.

Blockchain Wallet

Given the risks associated with Bitcoins such as the possibility of them getting stolen from blockchain, experts have incorporated AES encryption that safeguards your cryptocurrency wallet from being hacked. You can have your Bitcoins on Google Drive or Dropbox and allows you to download the same manually.

Software Wallet

This wallet type, also known as Multibit, helps in encrypting your private key through saving it to a USB option. This alternative is considered significant as you will not need to download the whole blockchain to send and receive the currency but rather, you will have a direct access to Bitcoin network as soon as you have a section of the blockchain downloaded.

Mobile Wallet

Mycelium or mobile wallet is the most convenient and the safest way to store your Bitcoins because you always have your mobile phone with you. The simple user interface allows you to navigate well and track the activities almost in real-time.

Based on the various features offered by the different storage wallets for your Bitcoins, it is only you who can choose the most appropriate one based on your specific requirements.