There is absolutely no doubt in the fact that bitcoins are right in the middle of the public attention. Those who have invested on this for some years now, are taking advantage of their expertise and knowledge to get out as many benefits as possible. Conversely, the people who have recently shown interest about this topic is trying to learn the most about this volatile market.
The truth is that everything related with cryptocurrencies is developing very fast. New platforms, currencies, technologies and more sophisticated security advances are taking place at the same time. The user has now the work of being as most updated as possible in this field.
Electronic wallets to store bitcoins and other cryptocurrencies are one of the most popular topics of interest. Especially because some of them are vulnerable of hacking and users are afraid about the security of their actives on the internet. Not all the wallets work the same, so we will share with you the best options to store your cryptocurrency!
Hardware Bitcoin Wallets
These are the most secure type of wallet to store your bitcoins, because when they connect, they do it through “Cold Storage”. This means that the hardware wallet is disconnected of the internet, making it inaccessible for hackers, Trojans and malicious programs. In this manner, they guarantee the security of your bitcoins.
This type of wallet are paid but you need to see them as an investment that can help you to save thousands of dollars in the future. As some of the best in the market, we can mention.
1. Ledger Nano S:
Managing this wallet is very simple because all you need is the Chrome browser and a safe computer. This type of wallet includes a secret PIN for more security. Ledger lets you to set up a recovery seed in order to obtain all your private passwords in case you lose or accidentally broke your device. A recovery seed is a group of words that must be placed in a strict order. In case you lose your device, you can just restore your wallet in another device by using this seed.
This is very important because we have to protect our passwords not only from external hackers but also from our own actions.
We are talking about a hardware wallet that keeps your private passwords offline. Besides, it lets you sign your transactions with your digital signature without the need to connect on the internet. This wallet is very popular because it works simultaneously as a “cold storage” and as a tool to manage your transactions, letting you to spend your currencies.
Any time you want to make use of your bitcoins, you can do it through the limited “one way” USB connection. TREZOR interacts in a safe way even with computers infected with malware.
There aren’t usernames nor passwords for TREZOR accounts, being very difficult to hack. In case you want to eliminate the risks even more, TREZOR offers a protection with passwords for the access. This has to be memorized and not written anywhere.
Online Bitcoin Wallets
This type of wallets work in the cloud, so users can have access anywhere from practically any computer device. They are very comfortable to access and easy to set up, comparing them with the hardware wallets. However, they involve a third party that constantly improves the security and takes proactive measures that keeps alive the digital risk.
This is one of the easiest ways to buy and store your bitcoins. It’s the most popular option for those who are barely starting in the cryptocurrencies field. Coinbase is a broker, an exchanger and an electronic wallet at the same time. The hardware wallets don’t offer this flexibility.
It’s the biggest bitcoin exchanger in the world and at the same time, one of the main objectives for computer’s hackers. One of the main benefits of this wallet is the fact that all its digital currencies are insured. This means that they would cover the loss of money due to violations in the security.
They store only the 2% of the funds online and the rest in a “cold storage”. A good recommendation to improve the use of Coinbase is making use of its “Multiple Signature Vault”. This is a decent solution to store bigger amounts of bitcoins.
It is a 2 of 3 wallet, which means that Coinbase owns one of your passwords, you own the second one and the last is a shared password. A user needs 2 of these 3 secret words to spend the bitcoins. An additional security measure is the 48 hours of process for all withdrawals in the vault. In this manner, you can cancel any withdrawal request inside this period of grace.
This is a multi-signature Bitcoin wallet available in the web, for android and IOS. It’s compatible with hardware wallets like TREZOR, Ledger Nano and HW.1. In this context, multi-signature means that the site requires a manual confirmation to manage your cryptocurrencies.
They use Deterministic Hierarchies Wallets, which means that they use new addresses for every incoming transaction, which keeps high privacy standards inside the operations.
This app includes at the same time, wallet and “bitcoin client” functions to offer their clients the possibility to access the right data and interact with the network in a secure and intuitive way. This wallet has to do with security because is decentralized, assures and backed. Neither Airbitz nor any third party can access to your currencies.
This tool is updated in the Bitcoin community and it has a directory of enterprises that accept this cryptocurrency. Its interface is very simple to use, creating automatic backups and making it a great option for beginners who look for a secure and practical option.
Now is your turn to analyze each one of these options and pick those that fit best with your current needs and expertise as a cryptocurrency investor. Remember that every process is a path of learning, so this is the perfect moment to research even more about a field that each day is gaining more attention for financial institutions. Today is a good day to start!