For those that have finally decided to become an owner of
bitcoins, knowing how to store this digital currency will be of the
utmost importance. The very name can be reminiscent of your everyday
experience with traditional paper money, but there are some details
that you should be aware of before you make your first purchase.
To gain access to your Bitcoin address requires the use of special
private keys which are stored safely in a bitcoin wallet. These
digital wallets offer users access to public bitcoin addresses and
let them make transactions, but there are some differences between
them in the way you can access them. There are three important things
to consider when picking the bitcoin wallet that best suits you.
These things are the level of anonymity that you have, the level of
transaction and data security, as well as how much control you have
over your assets. Let’s take a look a few options.
Custodial Bitcoin Wallets are a good way of storing your assets.
These services are run by a third-party site. That means that they
are stored on the internet. The advantage of this is that you have
access to your bitcoins if you have access to the internet. The only
danger is handing over sensitive information and potentially losing
bitcoins in the process.
Desktop Bitcoin wallets offer the ability to make an address which
will later be used to receive or send funds while also providing a
spot for private key storage which are crucial for making
transactions. Using this type of wallet is as simple as installing a
specialized program on a laptop or desktop computer of your choice.
Paper Bitcoin wallets are services that give each user an address
for their bitcoins along with a pair of QR codes. One of those codes
has a private key inside necessary for transactions and the other
gives you a quick link to the bitcoin address itself.
Mobile Bitcoin wallets grant you access by way of special apps.
That way you can make transactions whenever you have your smartphone
with you. The difference between these apps and regular clients for
Bitcoin is that traditional clients have to download the whole
blockchain. On the other hand, an easy-to-use mobile wallet only uses
a small part of the blockchain but relies on other nodes or other
users when it needs additional information.
Another popular option when it comes to storing private bitcoin
keys are wallets that require a USB flash drive or another physical
device, for instance, a hard drive.
Now that you know some of the most popular ways to store your
Bitcoin funds, you can choose the best one for you. Consider what you
want from storage and your habits when using this digital currency.
Whichever way you choose to go, it will shape your view of digital
money and can either hinder you or make working with bitcoins easier.