Cryptocurrencies are now spoken on every corner. Every day they become more popular and strengthen their position in modern economic operations. The network has a lot of information about how to make and increase digital gold. But where to store bitcoin and other cryptocurrencies that can not even be felt?
On a personal computer (laptop)
To store cryptocurrencies in computer memory, you need to download a special wallet that uses encryption algorithms to protect cryptocurrencies. Wallets are divided into “thick” and “thin”. The first involves downloading the entire blockchain algorithm, which requires special knowledge and a large amount of memory on your hard drive. For this type of wallet, you can download clients from the official websites of the used cryptocurrency. This type of wallet provides a high level of protection, but the amount of memory used and using different wallets for different cryptocurrencies is not very convenient. Thin wallets are a simplified version of thick ones. They access the blockchain using third-party resources and do not take up storage space on the computer. Also, the advantage of “thin” wallets is the presence of multicurrency representatives, which combine the ability to work with all types of popular cryptocurrencies. So, for example, the most popular wallets are Electrum, MultiBit, Hive and XAPO. All the above purses are not much different. They are quite easy to use. All that is required is to download a wallet. Select a server through which operations will be performed. Save the key phrase, which will be used to recover the password in case of loss.
On removable offline media
Since cryptocurrencies are digital currencies, that is, they are lines of program code, they can be downloaded to offline media, for example, a flash drive. If the information storage device on which the cryptocurrency is stored is not connected to the network, the security of the currency increases significantly. Using offline means for storing cryptocurrencies makes sense, with a large number of it. Part in this case, it is advisable to store on removable media, the remaining part can be used and stored on the computer itself, or in an online wallet and in case of loss, breakdown or hacking of the device, only part of the cryptocurrency will be lost. How to save cryptocurrency to a removable disk. To do this, create a backup copy of the wallet of the cryptocurrency that you use. It can be difficult to create one, but all you need to do is find the wallet file. dat. The folder in which this file is stored may be hidden for the user when using the Windows operating system, in which case it is necessary to check the boxes in the settings for displaying folders and files. In addition to the usual information media, such as a USB flash drive, CD, you can use hardware wallets. This type of cryptocurrency wallet is the safest of all existing for the so-called "cold storage". “Cold storage” means the storage of cryptocurrency without investing it, that is, the available funds do not multiply and are not invested anywhere, which also avoids the risks of their loss during investment activities. Hardware wallets are network isolated storage. In their work, they use electronic signature technology, a kind of private electronic key that is used to conduct transactions. The most popular representatives of this type of device are Ledger Nano S, Trezor and KeepKey. They support working with all the most significant cryptocurrencies. A detailed guide to using these devices can be found on their official website. There are several ways to ensure media security. If there is a very large amount on it, then it is advisable to place it in a bank cell or in a safe.
Online Wallets
With the growing popularity of cryptocurrencies, a huge number of online wallets for storing them have appeared. This method of storage is very convenient and very popular. Many services work with a large number of cryptocurrencies, which makes it easier to work with them. Also, this method does not require additional gadgets, access to such a wallet can be obtained from anywhere in the world. Computer memory remains free and there is no need to carry a flash card with you everywhere. Despite the advantages listed above, usability greatly affects security. Hacking servers, directly online resource where your funds are placed is unlikely. However, hacking a user using this resource and stealing his data from an online wallet is quite common. Various viruses and phishing sites can lead to the loss of all accumulations in cryptocurrencies. Therefore, it makes sense to store small amounts on these wallets for operational use. Blockchain Web Wallet is one of the most popular online wallets. You can protect your data with a password and two-factor authentication, which will provide reliable protection for your savings. The wallet works with Bitcoin, Ethereum and other popular currencies, constantly replenishing their list. Also, for each cryptocurrency, you can find an online wallet on its official website. Such wallets should be used with caution, it is recommended that you store your login information on paper.
Browser extensions
Crypto-wallets as an extension for browsers are also quite convenient and strongly resemble online wallets. Convenient functionality also suffers from security problems. Hacking browser extensions is a fairly popular practice, so storing large amounts is not recommended. The most popular of these wallets is Jaxx. It exists as extensions for Chrome and FireFox. This extension works with all the most popular cryptocurrencies. In order to use this extension, you need to go to the extension store, or install it from the official site. A convenient aspect of its use is the need to remember only one seed-phrase, consisting of 12 words, which will provide access to all wallets. As mentioned above, using this type of wallet for simple storage is not safe. You must be careful to check your computer for viruses and not leave login information on various unverified resources. It is recommended that you store information for entry, as in the previous case, on paper.
Trading exchange
It is not advisable to use exchanges for storage, since these systems are constantly subjected to hacking attempts and various cyber attacks that put your funds at risk of loss. The big advantage is the ability to work with almost all existing cryptocurrencies. There is also the opportunity to increase your funds. But simply using them for storage, without trading in large volumes, is impractical.
Mobile wallet
The speed with which the modern world moves requires cryptocurrency users to store not only on a computer, but also on a mobile device. This method has many advantages over the previous options. Obviously, specialized applications facilitate the use and storage of cryptocurrencies. They have a fairly high functionality and security advantages over crypto extensions for browsers and online wallets. This is due to fewer hacking tools for a mobile phone than for a personal computer. Many applications use NFC technology, which allows you to pay with cryptocurrencies without entering your personal data to access your wallet, applying a smartphone to the reader. A feature of mobile cryptocurrency wallets is that all of them are not full-fledged clients for using cryptocurrencies. The reason for this is the insufficient amount of memory on the mobile device, for downloading and an ever-increasing blockchain. It would also lead to high costs of mobile traffic, therefore, such applications use additional trusted blockchain nodes where basic information is stored, and the phone uses a simplified payment verification scheme. To use the application, you must install it from the App store or Play market. After going through a simple registration, it will be possible to use all the functionality presented by the application used. The names of applications can be viewed on the official cryptocurrency websites.
Paper wallet
This method is quite simple, convenient, cheap and safe. Special resources that provide services for creating paper wallets create an address for using cryptocurrencies with two QR codes. The first code is publicly available and allows you to receive cryptocurrency at the address of a paper wallet. The second key is private and is used to transfer cryptocurrency to other addresses. The main disadvantage of this method is its application for a limited type of cryptocurrency. At the moment, the service to create such wallets is possible only for Bitcoin, Ethereum and Litecoin. The advantage of this method is safety. After all, the login data is not stored or entered in digital devices, which ensures the safety and preservation of funds during cyber attacks and equipment breakdowns. To use this method, you must go to the service providing this type of service and register. Then you will receive a paper wallet in your hand by mail, or from your immediate representative. A huge number of cryptocurrency storage methods perplex their users.
Which way to choose? How to store bitcoin and other cryptocurrencies? It all depends on your personal preferences and the amount of cryptocurrency that you have. A large sum for simple storage is best divided into several parts. The largest, main part of the cryptocurrency is best stored on an isolated offline source that will not be connected to the network, which will provide you with protection against hacker attacks, hacking and equipment breakdowns. The other part that you plan to use can be stored in any of the above ways.
