It’s okay; You have already made the bitcoins you have bought yours, but what happens now? Are your cryptocurrencies really safe ? Where is the best place to store them? Are all sites worth the same? The truth is that no, since each of the tools can be designed for a specific use. Here we show you where you can do it.
You should try to store your bitcoin safely
As we know, bitcoin cryptocurrencies are 100% digital assets and that makes them vulnerable to attacks on the network. That is why not all sites are worth the same utility or to obtain the purpose of being really safe, as we are going to know. Thus, at present we find different methods, such as wallets , but there are more.
And it is that cryptocurrencies such as bitcoin form a decentralized P2P payment network. This means that there is no intermediary (such as a bank or company) to open an account for you. On the contrary, anyone can create as many ‘accounts’ as they wish for free.
These accounts are called addresses and each one is always associated with a password or key that allows you to certify that you are the owner of the corresponding address and the funds it contains. There, precisely, what allows us to control these accounts and our funds are the wallets and other cryptocurrency purses . These are actually special software that makes it easy for us to control our cryptocurrency ‘accounts’.
Not all sites are the same
But not everything is the same. There are many types: You can store your cryptocurrencies on your computer or mobile, on a physical device or even on a piece of paper, while not all of them are equally secure, so you always have to take extreme precautions.
As such, it should be said that these wallets are not files nor are they stored in any specific place, but to operate with bitcoins and other cryptocurrencies we need a private key that allows us to confirm that we are the original owner. As we mentioned, that is why there are wallets for bitcoins or platforms that allow us to store the virtual currency . But there are several types, they are as follows.
hot and cold wallets
It is a software that allows us to access a certain blockchain and thus be able to transact our cryptocurrencies. A wallet allows us to send and receive our cryptocurrencies, basically. Some wallets allow other functions, such as the exchange of cryptocurrencies and/or tokens quickly and easily.
We must distinguish between hot wallets, cold wallets and exchange wallets. Usually the first two require the recovery keyphrase to be generated first. Third-party wallets are usually exchange wallets and do not allow passwords to be generated. They are one of the most important and indispensable elements when operating with them. This is because they are the ones that allow us to send or receive payments in crypto assets.
As you know, and unlike the traditional financial system, bitcoin and other cryptocurrencies are totally digital currencies that do not exist in the physical world and that work based on cryptography . Therefore, the design of the wallets is of vital importance to be able to operate and manage our funds.
- Hot wallets . Hot wallet refers to any cryptocurrency wallet that is connected to the Internet. Generally these types of wallets are easier to set up and access. Easy to set up and use, they are convenient for accessing trading funds as they are already connected to the internet and are free.
- Cold wallets . Translated as ‘cold wallet’ or physical, they refer to any cryptocurrency wallet that is not connected to the Internet. Normally these types of wallets are more secure, but they do not accept as many cryptocurrencies as many of the hot wallets. Unlike the hot ones, which are free, these have a cost.
Exchange
Another possibility offered by the market is exchanges. An exchange works like a bureau de change . Or what is the same; With it we can enter physical money issued by a central bank and exchange it for cryptocurrencies. Transactions between cryptocurrencies can also be carried out.
This alternative is optimal if the purpose is to carry out transactions in the short term or if they are low amounts, since moving money from one place to another in the digital world can be expensive in terms of fixed commissions. In addition, some platforms such as Quantia offer the possibility of earning interest with the cryptocurrencies that are stored there.
web-wallet
The mobile web wallet is classified as a hot wallet, it runs in the cloud and can be accessed from any device that is connected to the Internet anywhere. Although it is easy and convenient to use, keep in mind that a third party controls your private keys and it is easier for them to hack and steal it.
They are generally those offered by exchanges or exchange houses. If you have ever bought bitcoins or other cryptocurrencies, you have surely seen how that same exchange house offers you an address where to store them. These wallets and your private keys remain in the hands of the exchange, so it is only recommended to store small amounts of cryptocurrencies or if necessary for trading.
Mobile cryptocurrency wallets
Mobile wallets are applications or DApps that you can download through iOS and the Google Play Store. Like other apps, it can be used anywhere with an internet connection to receive and send money.
Accessing your cryptocurrencies from a smartphone is one of the most useful and safest ways to do it, since you will always have them at hand to carry out transactions by scanning a QR code, without worrying about copying long shipping addresses.
In this case, mobile wallets are ideal for making purchases in stores and could soon replace credit cards or fiat money. There are wallets that only support the use of bitcoin (Electrum), but you can also find some that can support the use of hundreds of cryptocurrencies.
