Bitcoin is a craze that appears like it is here to stay. With many investors choosing now to get into the space, bitcoin has taken off over the course of the past year. With the coin hitting new highs during the past two weeks, one of the looming questions remains: what is the safest way to store your bitcoin?
Storing bitcoin comes in the form of what is known as a wallet. These wallets are either digital or physical and serve as a storage place for the code that links the bitcoin to the owner.
One of the most popular methods of bitcoin storage is Coinbase that works as an online bitcoin exchange that is not extremely secure compared to other methods, but it does allow for easy liquidation and ease of use.
Another online wallet is known as blockchain.info. As aforementioned, online wallets can be tricky because they do allow for a lot of room for hackers to get involved. This website does however boast claims of being the “world’s most popular wallet,” with around 15 million wallets and over 100 million transactions so far. Obviously, security is the highest priority, but wallets can only be so secure when they are online.
The next type of wallet is known as a software wallet. One of the most popular types of this is known as Electrum. This is a storage option that is known as one of the most widely respected desktop storage applications to date. It is highly secure, and extremely easy to use due to the sites user interface.
The safest two methods of wallets are known as cold storage/paper wallet, and hardware wallets. The former essentially is a document that one keeps in safety deposit box or some other form of safekeeping that has the private bitcoin keys written on it. Since this one is as safe as the user can make it, it ends up being one of the safest methods out there. The latter is essentially a USB drive that keeps the keys on it. This is extremely safe, but since it is digital, it does always pose a risk of being hacked.