Traders are at risk of their Bitcoin being stolen on exchange platforms. One can lose Bitcoin due to computer hacking, misplacement of private keys, or computer issues. If you do not want to fall victim, use any of the following ways to store your Bitcoin:
Hot Spending wallets
A hot wallet is a virtual wallet that typically resides on your computer or mobile device. A hot wallet is only suitable if you do not want to hold Bitcoin but rather trade it. It lacks complex security features. Hence, it would be best to enhance its security to guarantee that your funds are safe. Besides, hot wallets are only suitable if you perform low-value transactions on your exchange.
Cold Savings wallets
The safest way for you to hold Bitcoin is through a cold wallet. A cold wallet is usually operated offline, which reduces the possibility of loss. It stores the user details and the private key on an offline platform. It also includes software that enables a user to view their assets without compromising security. You should use a cold wallet if you only want to hold bitcoin and not trade.
Physical Bitcoin
You can also store your bitcoin safely as physical coins. A physical Bitcoin has a tamper-proof sticker that covers the value of the Bitcoin you have purchased. However, when you buy physical Bitcoin, you will pay more than the actual market value of Bitcoin. The price of a physical Bitcoin takes into account minting and shipping costs.
Take necessary internet precautions.
Once you have purchased and stored Bitcoin in your wallet, it is best to uphold some best internet practices to keep your Bitcoin safe. These practices involve setting up a backup system so that you can retrieve your details in case your hard drive is damaged. You also need to regularly update the software to make your wallet strong against any hacks and internet attacks. Setting up a multi-signature system will ensure that a transaction is thoroughly verified before being authorized.
