Cryptocurrencies are getting more and more popular. Bitcoin, in particular, has gained a lot of traction. As a result, people are looking to get into Bitcoin trading. They can find various sites that offer the basics of trading. Additionally, there are simulator apps that let you get the hand of the trading market.
In other words, you have access to different ways that will help you learn how to trade Bitcoin. But where do you store it? In a Bitcoin wallet of course. Think of it as your wallet. It holds your banknotes in place, as well as the coins and credit cards.
You’ll come across several Bitcoin wallets. One of the most popular ones is the mobile wallet. It’s convenient and offers a good layer of security. Naturally, the different types of wallets offer different types of security. But how does a Bitcoin wallet work?
Behind the Bitcoin Wallet
The Bitcoin wallet comes with 2 keys. These are the private and public keys. The private key is the one that makes your wallet secure. It’s also a signature that confirms every transaction you make. The public key is the one you can share with other people. Through it, you can make purchases and receive money. It also enables you to buy fiat currency with your Bitcoin.
Security is a big issue for Bitcoin. Every transaction happens online. Hackers are lurking about and will do just about anything to get a hold of your Bitcoin. As mentioned before, there are several Bitcoin wallets you can use. Some of them are safer than others. If you’re a Bitcoin trader you’re going to want to go for the ones that offer better security.
The Most Secure Bitcoin Wallets
Paper Wallets
This is one of the most secure wallets to store your Bitcoin in. There are many websites that will generate a paper wallet for you. The private key is printed on a piece of paper. That way you’re safe from any malware or hacker attacks.
The code is connected to an online wallet. That way you can use your public key to make various transactions. This type of wallet keeps you safe and anonymous. Just remember to take good care of the piece of paper.
Similarly to the variety of wallets, you’ll also find many ways that will help you earn Bitcoin. One example is the Bitcoin Prime trading app. This is a trading robot that does all the hard work for you. All you need to do is create an account and deposit the minimum of $250. You’ll also get a demo account to get a better feel for the platform. After that, you can try out the live session.
Hardware Wallets
This type of wallet is also a relatively secure one. That’s because you store the private keys on a hardware device. This can be a USB device or other external devices. Hardware wallets are also secure against viruses and other types of malware. Additionally, they protect you because they don’t have any personal or financial information on them. To make a transaction you’ll have to connect to a device with Internet access. There are lots of these types of wallets available online. They’ll keep you and your Bitcoin safe.
Desktop Wallets
You don’t need the Internet to store Bitcoin on your desktop wallet. That’s what makes it so secure. Your Bitcoin is safe and sound on a private computer. Unlike mobile wallets that can be accessed from anywhere in the world, desktop wallets have limited access.
Naturally, you’ll need a connection to make purchases or trade your Bitcoin. However, the fact that your private key is on hardware instead of online makes this wallet all the safer.
Physical Coins
You can get Bitcoin coins as well. This is another secure method of storing your Bitcoin. The coin will come with a sticker that contains the private key. You can use it to access the online wallet and trade or make purchases. They’re similar to paper wallets in a way. The only difference is that the coins have a pre-determined Bitcoin amount on them. Nevertheless, they keep your financial data safe.
What Else Can You Do to Increase Security?
Besides opting for secure wallets, you can also take security precautions. Firstly, make sure to have a backup of your wallet. You can use USBs or CDs to do so. Regardless of what you choose you’ll be able to access your wallet if your system fails.
Also, make sure to update your software. Each update brings better security to your wallet. That’s why updates exist. Additionally, you can opt for multi-signature. When a transaction is taking place, you’ll need the approval of 3 to 5 people to make it happen. There are other ways to keep your wallet safe.
