Best Way To Store Cryptocurrency Long Term

Bitcoins are purely digital assets, and their ownership depends on who holds the private key. Due to the character trait of anonymity, under whose name the Bitcoin was bought will not be considered. If someone manages to gain unauthorized access to your private key, your Bitcoins will belong to them. Hence, to have possession of your bitcoins for the longest time, it is important to store them safely. There are two ways to deal with this challenge, a hot wallet, and a cold wallet.

Where to store cryptocurrency?

A hot wallet is accessed through the internet. It is a perfect fit for people who make transactions with bitcoin quite frequently. It is very easy to set up and provides quick access to your tokens. No matter where you are if you have an internet connection, you can access your hot wallet. Traders enjoy this convenience very much.

On the other hand, cold wallets are physical devices that do not have any connection to the internet. The key is stored offline in a physical device, which makes it harder for hackers to crack the code. This is the safest method if you are looking to hold on to your bitcoins for the long term. You could create a trustworthy online bitcoin wallet for smooth transactions.

A hardware wallet comes in the form of a physical electronic device that uses the random number generation (RNG) technique to generate public and private keys. The hardware wallets are only storage for your private keys, the cryptocurrencies still remain stored on the blockchain. The keys are medium to maintain authentication as you let yourself in. One who has the keys has access to the coins.

The primary reason why hardware wallets are more dependable is that it stores your private keys in a device which cannot be connected to the internet. So, you can be sure that you are safe from hackers. They become a gateway for your access to the blockchain. Your hardware wallet has a private key and that is like a digital signature that signs off the transaction you make on the blockchain.

What makes private keys so safe is the fact that it is impossible to forge them. Every key is unique and they are an array of random characters having a mixed arrangement of alphabets and numbers.

Also Read : How to invest in Ethereum ?

How to store Bitcoin?

The best way to store cryptocurrency or Bitcoin is in a hardware wallet, which is not actually storage for Bitcoins but it keeps the key safe which unlocks your Bitcoin.

Benefits of Cryptocurrency Hardware Wallet

• High Security

Crypto users would prefer hardware wallets over software wallets any day, as they want ultimate security for their tokens. You are not required to connect the wallet to your computer for any transaction, which keeps it from being exposed to hackers. Even if your personal computer is intruded on by cyber attackers, your crypto assets remain safe.

• One Storage for Multiple Cryptocurrencies

As cryptocurrencies do not have a physical existence, one wallet can store multiple of them. You have the liberty to store your private keys to Bitcoin, Ethereum and others. Also, it becomes very easy to recover them as there is one single phrase that you need to remember to backup all your assets. There is no limit to how many forms of cryptocurrencies you can store.

• Pin Encryption

To add an extra layer of safety, your hardware wallet only unlocks with a pin generated by you. This pin is only supposed to be known to you and no one else. If the wallet gets lost or stolen or someone tries to forcefully activate it, the device will switch to self-destruction mode after three wrong pin entries. The public and private keys are stored on the device will be automatically deleted to ensure they don’t fall in the wrong hands.

These are some tips on how to protect your cryptocurrency. However, it is your responsibility to keep your wallet away from prying eyes when you are entering your pin or copying your private key. With cryptocurrencies becoming popular and widely accepted, digital wallets are trying hard to up their game. They are undergoing continuous developments and changes to eradicate any vulnerabilities or flaws so that your crypto assets are highly secure.