Top-notch Ways to Store Your Digital Tokens, Bitcoins!

Bitcoin, a digital asset that was created back in 2009 by a mysterious entity named Satoshi Nakamoto. This entity created a technology that has made many investors billionaires. Bitcoins are neither issue nor governed by any central authority or financial institutions which mainly attract the people. There is no fee charged in bitcoin transactions, and everyone is provided with transparent access to it. Bitcoin works on a technology named blockchain, which records all the transactions and verifies them. There is no involvement of third-party in completing bitcoin transactions.  

The blockchain technology on which the entire bitcoin network is developed is one of the leading innovations, and many companies and businesses have adopted blockchain technology as of now. You can learn about the top innovations that are made by visiting newsday.co.zw 

Till the year 2017, cryptocurrencies like bitcoin have attained a peak and gained much popularity, but after that, popularity gets fading, but bitcoin again experienced a modest surge in 2019. With the increase in popularity, the number of hacking events increased. No doubt, many new investors have invested in bitcoin and are not well aware of making their investments secure. Hackers are finding imaginative ways to steal the funds of people who have not protected their investments. Some thefts have taken place, and the victims watch their tokens getting away from them and stolen by hackers.

How are Bitcoins Stored?

Similarly, the investors store their cash and cards in a physical wallet; digital currencies like bitcoin are stored in a digital wallet. The digital wallet can either be web-based or hardware-based. The wallet can be stored in a computer, desktop, mobile, or you can reside in the wallet by printing the addresses and private key used for admittance on paper. But some users question the security of digital wallets? The answer is the security depends on how you manage the wallet. 

The wallets are assigned a set of private keys that only the bitcoin owner can access. If the bitcoin owner or wallet owner loses that private key or displays it to anyone, there are higher chances of being stolen. Even the wallet owner cannot access the bitcoins without the private keys. Other than this, if the user loses her bitcoin by malfunctioning of the computer, by losing a computer, or by hacking, then you will lose your bitcoins.

Let us move forward and know about the best ways to store the bitcoins:

Hardware wallet

Hardware wallets are the parts of hardware like USB sticks, Pen Drive, and other hardware devices that one person can carry out. The hardware wallet provides the benefit of full anonymity with which the transactions can be carried out. No personal information is associated with the hardware; therefore, no identifying link can be leaked. Hardware wallets are flexible to malware attacks; thus, if the user loses the wallet, funds can be recovered using the seed phrase. But if the user loses the hardware wallet, then there is no way to recover the bitcoins. 

Desktop wallet

Desktop wallets are also known as cold storage methods; these are not connected to the internet. A desktop wallet is the safest wallet, and it offers numerous advantages. As online wallets only work when connected to the internet, they are vulnerable to hacking and malicious attacks. Desktop wallets are only accessed through a private computer with security keys stored on the computer system. Therefore, the exposure of security keys is reduced. The desktop wallets also can get hacked if the machine receives immune to malware attacks designed to steal bitcoins.

Paper wallet

 One of the safe ways to store bitcoin is the paper wallet, but it needs more understanding of digital currencies. The user can quickly generate a paper wallet online by using numerous dedicated websites for greater security. It is relatively easy to store paper wallets as they don’t require much space and provide true anonymity. Paper wallets are the bitcoin seed written on a piece of paper. 

Physical coins

The services are allowing the investors of bitcoin to buy physical bitcoins. The coin that the user purchases have a tamper-proof sticker covering the amount of the bitcoin. The user needs to pay a small premium above the value of bitcoin to buy the physical coins.