Where to store bitcoins?
Bitcoin is an electronic currency. So, you can’t invest it in a regular wallet. And where, after all, to store bitcoins, and how to protect your electronic savings from intruders, we will consider in our article.
Features of storing bitcoins
Features of storing bitcoins
In fact, bitcoins are not stored anywhere. Only digital keys that provide access to public bitcoin addresses and make it possible to sign transactions are subject to storage. It is for such information that bitcoin wallets are created.
Wallets are different. There are wallets for PC, mobile, online wallets, hardware. Such wallets are available for almost any popular operating system. In addition, there are even paper wallets. But which storage method will be the most reliable and right for you? That is what we are trying to figure out.
Bitcoin Wallet for PC
Bitcoin wallets for PC require installation on a computer. At the moment, such wallets are considered the most secure. The owner of a PC wallet can control the level of protection himself and manage his bitcoins without the involvement of intermediaries. Basically, this method of storage is preferred by advanced users and people who want to store large amounts of bitcoins for a long time.
Depending on the tasks to be implemented, there are “thick” and “thin” wallets for PC. "Thick" requires downloading and storing all the blocks, which will require a large amount of free space on your hard drive. And accordingly, only owners of PCs with high technical parameters can afford such a wallet. But, despite the significant bulkiness of this storage method, it is these bitcoin clients that will help ensure the highest degree of security and anonymity.
Among the most popular "thick" wallets, Bitcoin Core can be distinguished. This bitcoin client was one of the first to be launched, and still occupies a leading position. This program is constantly being improved and updated and can be installed on almost all PCs. But it should be borne in mind that, since this wallet is very resource-intensive, you should not count on its high speed.
Thin wallets do not require downloading and storing the entire blockchain. Due to this, the speed of their work is significantly increased, and the power requirements of your PC are reduced. Such wallets may well be installed on netbooks or tablets. But it is worth reading that the level of security of such bitcoin clients is somewhat due to the fact that some of the blocks are loaded from third-party servers. This means that the risk of transferring data to a third party increases.
Among the "thin" wallets, Electrum is the most popular. This wallet allows you to store bitcoins offline without requiring an internet connection. In addition, this program allows you to restore your wallet using a special code.
Mobile Wallet
A mobile wallet is a special application for smartphones. The main feature of such applications is that only part of the blockchain is downloaded to the device. And the rest of the information is read from trusted services, which may affect the security of this method of storing bitcoins. It is for this reason that it is not recommended to store large amounts on these bitcoin clients.
But mobile wallets also have their undeniable advantage. With the help of such wallets, you can pay with bitcoins directly from your smartphone. Such payment involves displaying a bitcoin address in the form of a QR code, or using contactless payment technology (FNC).
Of course, in Russia this method of calculation has not yet gained wide popularity. But, given the ever-growing interest of users in cryptocurrency, the days when bitcoins can be paid in any store are not far off. So, for example, now bitcoins are accepted in the Moscow IT-bar "Key" or in the Valenok restaurant.
There are many mobile wallets. But among the most popular, Blockchain can be distinguished, which has great functionality and a simple interface. And also, GreenAddress, which is distinguished by increased protection due to the confirmation of the transaction with not one, but several private keys.
Online wallets
The easiest way to store bitcoins is to create an online wallet. There are many services on the Internet that allow the creation of such a wallet. The most popular include:
- Coinbase;
- circle;
- blockchain
- Xapo.
And such services are very popular. After all, Internet wallets do not require the installation of special programs, there is no need to download data blocks and they can be accessed from any device that has a network connection. But it also has its pitfalls. All data is stored on the service. So, if there are failures in the operation of this service, interception of passwords, you can easily lose your savings.
Hardware Wallet
A hardware wallet is a special device for storing private keys in electronic form. All transactions can be made only through it. Moreover, such a wallet does not need access to the Internet. Hardware wallets include:
- Trezor
- Ledger Nano S
- keep key.
paper wallet
A paper wallet is a document containing two generated QR codes. One of these codes is a private key that can be used to spend bitcoins. And the second is public, used to receive coins.
You can create a paper wallet by contacting specialized Internet services. Such services will help create a bitcoin address and generate QR codes. The received data is printed on plain paper and stored.
Having printed out your paper wallet, you should take its safety very seriously. If third parties gain access to it, you may lose all savings. In addition, with careless storage, paper media may be damaged.
Anonymity of bitcoin wallets
Bitcoin wallets are not completely anonymous. Almost all data, including wallet numbers and transaction amounts, is publicly available. And although the use of bitcoins does not require binding to personal data and it is not clear from the published transactions between whom exactly the operation was carried out, nevertheless, if desired, the address of the bitcoin wallet and the identity of its owner can be calculated.
It is for these reasons that there are some ways to help increase the level of anonymity. These methods include:
- Using TOR or any other methods to hide the IP address;
- Creating a new address for each new transaction;
- The use of special bitcoin mixers that distribute bitcoins between hundreds of wallets and return the amount to the owner, thereby obfuscating the traces of the transaction.
How to secure a bitcoin wallet?
Like a regular wallet, a bitcoin wallet also requires protection. And given that this currency is electronic and is used mainly on the network, then such money requires more attention. To ensure the safety of savings, it is recommended to follow some rules.
Wallet Encryption
this is the first thing to take care of. Encryption involves setting a strong password. But you should understand that the password will not be able to protect you in cases where your device is infected with viruses. That is why it is recommended to use additional methods of protection.
Multisignature
Multi-signature is a great additional security feature. This method involves conducting a transaction subject to its signature by several users at once. Such a method can be successfully implemented between family members, business partners, or even one client if he signs a transaction from a second device.