The purpose of Satoshi Nakamoto behind the creation of this digital currency is to provide the buyers and sellers with alternative money. This perspective was to make electronic money transfer easier. As soon as Bitcoin launched, people accepted it with open arms.
Today many companies accept Bitcoins in exchange for their product or services. In fact, traders have also started investing in Bitcoin.
Bitcoin is a digital currency and hence it needs to be managed carefully. When you are dealing with this cryptocurrency the most important thing you should learn is how to store this electronic money. In this article, we will see how you can store your Bitcoins safely in different types of wallets.
How to Store Bitcoin:
Bitcoin is an electronic currency, generated by an algorithm. This means you cannot save Bitcoins in your bank or any other physical entity. However, if you are purchasing Bitcoin it becomes important that you need a place to store it. Considering the same Bitcoin wallets have been designed.
The basic use of the Bitcoin wallet is to store this cryptocurrency. There are several types of Bitcoin wallet software available in the market.
Just like the bank account number when you will store Bitcoins in your wallet, your wallet will get a unique address. While performing the transaction you have to make sure that you make payment on the correct wallet address.
As the wallets follow the transparency criteria, it only reveals the unique wallet address. Any other information of the transaction partner will remain private.
Also once you perform the transaction at the wrong address or once you will lose your Bitcoin, recovering the same is next to impossible. That is why before performing the transaction you should cross-check the wallet address at least twice.
Before you go ahead and start storing your electronic money, it is always advisable to make sure that the wallet you have chosen is a reliable one.
To consider the same you have to remember these points:
- Trustworthiness:
It is always advisable to go for a dependable wallet to store your Bitcoin. For having a check on the trustworthiness of the wallet you can inspect whether it is legally approved or not. You can visit the official website of the wallet and check its legitimacy.
This will make you sure about the fact that the wallet you are dealing with is an ethical one.
- Compatibility with Bitcoin Exchange:
Bitcoin exchange is the place from where you can purchase your digital currency. You can get Bitcoins in exchange for hard cash. Once you have made the purchase the exchange directly transforms the money into your wallet.
But before the exchange does that you have to verify whether your wallet is compatible with the exchange or not. Only if both the exchange and the wallet are congenial then the exchange will be able to send money to the wallet.
- Security:
To store Bitcoins in the wallet it has to be secure enough to save it. Being an electronic currency the possibility of it getting hacked increases. Hence before you store your cryptocurrency in the wallet you have to make sure that it follows all the security features.
- Fees:
What if you get the wallet, start storing the cryptocurrency and your wallet starts deducting the money by the name of some XYZ fees. Nobody wants that to happen and that is why it is noteworthy to check the allowances of your wallet before using it.
You can visit the website of a wallet or can even give a call on the customer service number to know exactly what you can expect as a fee for the storage of your Bitcoin.
So as to store the Bitcoins in the wallet these are the few things you should remember. The next thing we have to see is what types of Bitcoin wallets are available.
Software Wallets:
As the name suggests this type of wallet is in the form of software which you have to download from the websites of the wallet. This software wallet can be installed directly on your laptops or computers. Although this is one of the most prominent wallets, these are also much easier to hack.
Before downloading the software wallet, you should make sure that you are downloading the regiment copy of the wallet or that you can have reliable and secure storage.
Cloud Wallets:
Cloud wallets are the type you neither have to install nor carry with you. These are the online wallets. These wallets also have a user-friendly interface. These wallets also offer offline security.
In this wallet, your unique key is secured with a third party. That means you have to exhibit faith in the third party regarding the digital currency and also there is a possibility of money theft.
Hardware Wallets:
Hardware wallets are small devices that can be used to store Bitcoins as a wallet. Hardware wallets require an internet connection to operate. Whenever you want to perform the Bitcoin operation you need to enact your hardware wallet.
This type of wallet is quite secured as it is present in a physical entity and most of the time the wallet is offline. However, there is a possibility of you losing your hardware wallet and with that, you may also end up losing your Bitcoins.
Mobile Wallets:
These are the varieties of wallets you can carry as a mobile application. These wallets are very much identical to the software wallets. This is again a prominent wallet category. As the application is present in the mobile phone this makes the usability of Bitcoin easier.
One can handily pay for the products or services wherever they want using these wallets. But there is again a risk of you losing your phone and with the phone, you may also lose all of your Bitcoins, as your mobile phone wallet will have the key for the transaction.
Paper Wallets:
If more than storing the Bitcoin you are looking for investing in it, then you can certainly go with this sort of wallet. As the name suggests this type of wallets are present in the paper document format. The document contains private and public keys to perform the transaction.
Those who want to store this cryptocurrency for a longer duration can get this wallet. Do this type of wallets are easier to lose, from the key security point of view this type of wallets are quite secure.
Among all these categories of wallets, you can choose the one as per your convenience and store your cryptocurrency.
Conclusion:
Now that you know the exact procedure of storing Bitcoin you can make your strategy and start with Bitcoin trading. Bitcoin trading is a great way of earning passive capital.
You just need to have adequate knowledge about this cryptocurrency and you have to speculate the movement of the market. You can get yourself registered with the trading software at Oil Profit Login.
This is one of the best trading applications for Bitcoins. With its security and technically advanced features, traders can enjoy a smooth and effective reading. You have to visit the official website of Oil Profit and download the application.
This app will provide you with great trading strategies and high-end security features. So if you want to make the most of your Bitcoin you just have to download the Bitcoin trading software of Oil Profit.