It’s quite a common that we hear stories circulating over the internet that someone has purchased crpytocurrencies but could no longer access the valuable tokens once they became worth something. Stories of cryptocurrency exchange hack were on the headlines in 2017, and even though many exchanges have implemented advanced security measures to reduce success of hacking attempts, the peril of losing your valuable tokens is still there. So how to store your Bitcoins to prevent potentially dishonest and fraudulent activity – the answer is having a bitcoin storage that will enable you to store your precious cryptocurrecny safely. Here are the best ways to keep your bitcoin secure—or at least as secure as possible.
How do Bitcoin Wallets Work?
Before getting into the thing the first thing you need to understand is that you won’t actually be storing the bitcoin itself. Bitcoin is not a form of currency in the general understanding of the word. Is not a unit of currency, is an encrypted address stored on the blockchain. Basically what you own is a unique cryptographic key which refers to a particular address within the blockchain. In order to maintain the integrity of this address and prevent hack attempts, you need to store it in a wallet. Based on the above mentioned, there are several ways to keep your bitcoins in safe place.
Best place to store bitcoin
The safest way to keep Bitcoins is to store them online in a digital wallet. Local storages on smartphones or PC have also gained popularity recently, as they minimize potential exposure to public and thus make hacking and phishing scams close to impossible. As such, keeping your bitcoins on the offline storage is by far the safest way to store your digital currencies.
Hardware wallets usually look like ordinary USB flash drives and can be easily connected to your pc or laptop. For security reasons each hardware wallet uses a PIN number. Additional security password called “seed” is provided in case of forgetting the pin. We would like to note here that forgetting both passwords will put you in a very uncomfortable situation so we recommend writing down your seed code on a piece pater and keeping it under lock somewhere safe. Off course, the intensity of the security measures depends on the quantity of bitcoins stored and on how frequently you are planning to use them. The only disadvantage of keeping bitcoins on hardware device is threat of potential malfunction, so we recommend having an additional back up copy on another device in order to avoid loss of valuable data.
Choose trading crypto on margin
Another way of safe Bitcoin storage is not having a direct bitcoin investment. With the growth of bitcoin popularity many brokers started offering its customers to trade bitcoins on margin, using leverage. This way allows traders to take advantage of fast movements of Bitcoin price and open positions on short timeframes. This is similar to forex trading, where you can get a fully operational trading account and open positions on movements of various cryptocurrency with leverage provided by the broker. We have tested several cryptobrokers, one of such brokers is Primecrypto.io. Website was very good trading platform and gives traders advantage to trade on numerous cryptocurrency including Bitcoin, Litecoin, Bitcoin cash and Ethereum. Though trading cryptocurrencies on margin is quite different from conventional cryptocurrecny investment this option will provide you with fast execution of trades, instant withdrawal option back to your credit card or bank account and will significantly reduce exposure to fraudulent activities.