Learn about various options and possibilities you have nowadays to store bitcoins, either for gambling or shopping purposes. Keep your BTC funds secure.
Storing bitcoins properly is more important than you probably think
These days when payments and transactions in Bitcoin are becoming so increasingly popular, mainly because of their greater convenience and anonymity, the necessity to store the amounts of the cryptocurrency safely and securely has become more than obvious. As of the time of this being written, there are at least several various ways to set up a Bitcoin storage that you can easily trust your precious BTC funds to, so let us take a look at those being the most efficient and suitable just for you. It will of particular assistance to you when launching your first BTC wallet, especially if you have never any experience with cryptocurrencies before.
Right off the bat: if you’ve been wondering whether it is ok to store all your bitcoin in one single place, then the answer is NO. You should never do it so as to prevent losing all your crypto-funds in case your one and only BTC wallet/storage gets hacked and scammed, the more so you are keeping them online. We strongly advise you set up several wallets to store bitcoins, and start feeling much more secure and comfortable. After all, you obviously have no option to trust your BTC to a bank (and why in the world would you want to do that if the whole Bitcoin system was created in opposition to the somewhat-unmanageable conventional banking mechanisms and establishments), so you need to care for their safety by yourself.
How to safely store bitcoins without the risk of losing them accidentally
Essentially, if you’re following our advice to divide your Bitcoin funds and keep them in separate wallets or storages, nothing extraordinary will happen to them unless your vault gets hacked by a highly skillful hacker, or the exchange suddenly goes bung. Well, a solution to the latter cases also exists, and it’s called a hardware wallet/storage. These have been used by BTC devotees for a couple of years now, and their security and trustworthiness has been fully proven. Basically, what you’re doing to your bitcoin when sending them to that kind of a vault is putting them into a so-called ‘cold storage’ (a kind of a USB stick), where nobody but you can access them using a set of passwords and special credentials. Any time you decide you need to perform certain transactions with your crypto-funds stored on hardware device, you just connect to your PC or laptop, and do whatever you need to. Some of these devices are even equipped with chips like the ones built into plastic bank cards, so as to make and receive instant BTC payments at locations where such technologies are supported. Seems really convincing and solid, and it may suit your needs perfectly if you’re unwilling to store bitcoin online for security reasons. Just remember to keep your cold storage away from people you don’t really trust.
But what about smartphones? How to store your bitcoins safely on them? In fact, you either use your smart device (Android-powered phones and iPhones give the best fit for that) to access your virtual wallet on the Internet, which is basically what most people do, or use your phone’s internal memory as a hardware BTC storage (certain providers enable this option too). On one hand, one may consider both these functionalities incredibly convenient, and they may have a point, as you don’t need to carry anything else with you but your phone (and you have it with you most of the time, do you?) to make and receive instantaneous transactions in Bitcoin. Brilliant, isn’t it? But then, again, if your phone gets stolen, you may kiss goodbye to your online wallet (never stay logged in if you don’t use it) and built-in storage in case a thief is clever enough and knows what to look for on your device. Kind of ambiguous. Still, if you think your phone never falls into the wrong hands, you should by no means underestimate the possibility to use your smartphone to store Bitcoin, or use to access your virtual wallet. If BTC security is of no concern at all, a more convenient payment option may be preferred, that’s for sure.
Paper wallet? Really? How can it be a secure Bitcoin storage?
Well, believe it or not, it actually can. Or, let us put it this way: certainly, a sheet of paper has no physical capacity to store bitcoins, no matter how thin or thick it is, but in fact you can use it as an auxiliary method to keep the necessary access details, addresses, and credentials for your BTC wallet in a tangible form, i.e. not online, where they can be obtained by someone unwanted more easily. So, basically, it all goes like that: you have all the necessary data to access your online wallet (including your unique QR codes printed out) backed up on paper, and you keep it in a secret place. Whenever you need to, you can access your Internet wallet within seconds using your smartphone’s camera (see above), or a webcam.
There is also something else you can do to add up to your BTC funds security using a paper, more specifically, create a password for your vault that is impossible for others match, and put it down for use in an emergency. Also, it would be logical to hide this paper from sight and, if possible, keep it locked away in a place only authorized persons are able to access.
As you see, the tips on how and where to store bitcoins properly and securely are rather simple, but they are very helpful and efficient when it comes to looking for a better storage alternative for your digital crypto-funds. There is no point in reinventing the wheel when there is a choice of really safe and proven methods to enhance your payment security without any undue effort. Knowledge is power. Now, you can always give a good advice to your friends or relatives if asked ‘How do you store bitcoins?’