Bitcoin, which has experienced a protracted fall over the past few months, is still the most popular cryptocurrency. And the fall in the rate makes many new investors think about buying BTC before it starts to rise again at an explosive pace.
Those who decide to purchase bitcoins will not hurt to start a wallet. Of course, you can store cryptocurrency on an account on the exchange, but the most reliable way would be to withdraw it and hide it in a “safe” after purchase. Even if the exchange is hacked, your savings will not fall into the hands of hackers.
Avast Threat Lab experts conducted a study of 37 cryptocurrency phishing sites. Most of them pretend to be wallets – services for storing cryptocurrency. You can also be deceived during various operations with cryptocurrency. Therefore, it is worth using only proven services. According to
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It is very important to choose the right place to store cryptocurrency savings. Especially in light of the fact that scammers are on the alert and often create entire services offering to open a wallet. Naturally, you will no longer see bitcoins deposited in such storages.
In this article, we will tell you which bitcoin wallet to choose.
What is a Bitcoin Wallet
A Bitcoin wallet is a virtual storage. It is a set of files (or an application) that stores information about received and sent bitcoins. The very first bitcoin wallet appeared simultaneously with the cryptocurrency – in 2009. Then it was simply called Bitcoin, but a few years later it was renamed Bitcoin Core.
We advise you to create a separate wallet for bitcoin and transfer the purchased cryptocurrency to it. And also take the time to secure the key and passphrase. And we will analyze which bitcoin wallet is better to choose depending on your preferences.
Which Bitcoin Wallet to Choose
A cold wallet is a cryptocurrency storage that is not connected to the internet. In other words, all the data necessary to access bitcoins is invulnerable to hackers. That is why cold wallets are called the safest way to store cryptocurrencies.
There are several types of cold wallets, the main ones being hardware and paper wallets. The first is a small device that you can always keep at hand or put away in a safe. The advantages of such a wallet include anonymity – it does not store personal information about the user.
Storing cryptocurrencies in a hardware wallet is much more secure than most other methods. But at the same time, they can even be hacked. Keep in mind that hardware wallets are not 100% secure. If your device is stolen, the attackers could theoretically break into it and gain access to your keys. So take care of it.
A paper wallet can be called one of the most conservative methods of storing cryptocurrency. The essence of the method is that you print out your private key and secret phrase to restore it on paper. Since this wallet is technically impossible to connect to the Internet, it is unreachable to hackers.
Hot wallets are bitcoin storages whose private key is located either on the Internet or devices connected to it. They are launched by crypto exchanges, for example, our Currency.com platform. Clients are provided with a hot wallet, which is securely protected by the company. Hot wallets are also called applications for computers and smartphones.
The simplest type of hot wallet is online storage. It can be built into the browser or brought on the exchange. You can access such a wallet from any device connected to the Internet. It is convenient to store bitcoins in it, and the principle of operation resembles an online bank, but it is very important to pay attention to checking the reliability of the service. Remember: you trust the company with your cryptocurrency savings, it will be the company that will store your private key. Platforms for creating and storing wallets are one of the main targets of hackers.
For most traders, a balance between hot and cold storage is the best solution. To understand which wallet is better to choose for bitcoin, we summarize: hot wallets are more convenient when you are not going to store cryptocurrency for a long time and intend to make transactions. In such a wallet, it is better to keep only those coins that you want to spend or invest. If you have a lot of bitcoins or if you want to put aside bitcoins in the hope of a price increase in the future, then it is better to store BTC in a cold wallet.