As everyone know bitcoin is in acceptance everywhere and have great future. Merchant do accept as payment. As they have minimal transactional amount. Bitcoin stores in digital vault it allow you to send or receive or buy good by bitcoin same you work with cash in your safe-deposit box. You digital key to access your account. But your digital does not have insurance as it decentralized currency. You can store your digital vault in five ways in your phone, computer and web.
- By desktop you can visit website and pay.
- Beside, to receiving transactions on the network, software also enables you to create a bitcoin address for sending and receiving the virtual currency
- Enable to store the private key for it.
- This has the advantage that you control your own money, nobody else has access to your wallet and you know where your money is at all times.
- Measure for safe account, don’t you let your computer get infected or let your friends copy files around or whatever.
- Disadvantages with this are that you have to store the entire bulk of the blockchain on your computer.
- Another disadvantage is that you cannot use your money from any other computer.
- Even you will lose all the money in your wallet if you ever lose your hard drive or computer, unless you’ve made a backup of the wallet file.
2: Mobile wallet
- Using digital vault from phone is much easy than computer.
- As in your physical outdoor payments it’s not possible to handle computer with you but it is easy to carry smartphone with app, stored digital private key.
- Bitcoin address allow you to access your account from phone.
- Many also incorporate other layers of security to ensure users’ bitcoins are not compromised.
- It is a good idea to keep only a small amount of bitcoins in mobile wallets while keeping the rest in more secure options.
- In some cases you can access through smarthphone has driven themselves in advance feature with near field communication. This feature help you to pay bitcoin without entering information.
3: Web Based Wallet
- Web based wallets store your private keys online, on a computer controlled by someone else and connected to the Internet.
- Some web wallets link to mobile and desktop wallets, replicating your addresses between different devices that you own.
- Online bitcoin wallets are easy and accessible via any device with connection of internet.
- It is easier and faster to make transactions via online wallets due to its accessibility.
- lack of digital security knowledge and Phishing, malware, insider hacking allow hackers to steal bitcoin from online wallets
- Online bitcoin wallet are in usage but we suggest you should keep larger amount of bitcoin in other types of wallet.
- Digital wallet have lot of advantage but with advantage they have disadvantage too as they can hacked.
4: Hardware Wallet
- A hardware wallet, also called a bitcoin locker or cold storage, is the most secure bitcoin wallet.
- A hardware wallet is a device to be connect to your computer, using a USB or another kind of connection.
- bitcoin hardware wallet will give you the safety of cold storage can be combine to online wallet
- The method of choice for many bitcoin holders to keep significant quantities of bitcoins
- Hardware bitcoin wallets are user-friendly and portable
In the past many bitcoins were hacking online and sending the bitcoins to another wallet. By keeping your bitcoins on a hardware wallet, they are offline / in cold storage, and hacking is impossible . This means a hardware wallet is one of the safest ways to store bitcoins.
5: Paper Wallet
- Bitcoin paper wallets are safe from hackers as the bitcoins are offline.
- Users have control of their bitcoins at all times as they keep own private keys.
- The problem, is storage. Paper can torn, fade or otherwise lost .
- As hardware wallets, there is no recovery mechanism for paper wallets– so lost bitcoins gone forever. This is something you need to keep in mind if you want to use this option.
- As your money wallet your paper bitcoin wallet can be theft too so you need to be careful.
Some simple way you can secure your wallet.
- Encrypt it
- Back it up
- Take it offline
Encrypting means setting a unhackable password with capital letters, punctuation marks, numbers, etc. This helps against most robbing mishaps, yet there are limitations.
- Hackers could use a software to hack your accounthence even if you have a super strong password, a still their are chance of hacking.
- If you forget your password then you are not seeing your coins again.
Backup it up!
- Backing up your wallet ensures that if all else fails such as computer crashes, phone gets stolen etc you can restore your coins.
- Bitcoin wallets have hidden private keys. We suggest you backup your entire wallet in spite of keeping back up for your visible Bitcoin addresses.
Take it offline
- You can protect your wallet is if you store it in a place that is not connected to the internet.
- Anything connected to the internet is susceptible to hacking. which is cold storage to store private bitcoin keys offline.
- Many software wallets offer cold storage.