Where and how can you store cryptocurrencies?

There are 6 ways to store your bitcoins or your private keys in the wallet addresses. Because Bitcoin works on a public-private key pair, storage of the private key is essential and they are stored in a „wallet“. Wich wallet will you choose depends on your preferences for security.

Bitcoin-QT Wallet

post9aThis wallet is original and it is created by developers of bitcoin. It is designed to be used on both desktop computers and laptop devices, and it stores private keys on your computer. It has to store a full copy of that blockchain. This wallet can send and receive coins, encrypt and receive and send addresses, so the private key gets a password. Bitcoin-QT Wallet is good for the beginning but is not a good option for computers with small hard discs. This way is not so good for storing large amounts of cryptocurrencies.

Web Wallet

It is hosted through a provider who is external and it stores private keys too. Web Wallets are really easy for using and are handy for new users. But you can be hacked for your details of login just as you can be hacked for the same details when you are logging into your bank account. The Web Wallet provider can also steal coins. Along with desktop wallets, this is a most unsecured way to store your cryptocurrencies.

Multi-Signature Wallet

These wallets have not got just a private key but also they have two additional keys. One key is held by coin-base, one by your machine and the third yours. You need only two keys to access your currencies. This is safe if you wish to keep your currencies long term. The government cannot seize coins kept this way.

Hardware Wallet – Ledger and Trezor

post9bThey can look like a USB memory disc, and are untouchable by malware. The brand Ledger has its own application and plugins. When you are in a transaction, if you enter a PIN three times incorrectly it will wipe your wallet. It is a top security system. Ledger must be on a secure machine so it can repair the wallet and the keys if they are damaged. It is for keeping an incredible amount of cryptocurrencies. Trezor is similar to a previous one described, but it is larger. The security of this hardware wallet is the highest of any wallet solution that is hardware based.

Paper Wallet

This is a secure way because you will print out private-public key pairs and QR codes for scanning. They are secure just as hardware wallets are.

Mobile Bitcoin Wallets

These can be stored not only on your mobile phone, but also on a tablet, iPod touch, or any other portable device. They are usually protected by a PIN and can be further secured by encryption. These wallets are for everyday use and spending and are good for keeping a small amount. They are no less secure than an average wallet online.