BY: Mantri Pragad Markandeyulu
Part – 5 A Blog Series On Cryptocurrency
Decide how to store bitcoin
Bitcoins can be stored in two kinds of digital wallets: a hot wallet or a cold wallet.
With a hot wallet, transactions generally are faster, while a cold wallet often incorporates extra security steps that help to keep your assets safe but also take longer. Hot wallet With a hot wallet, bitcoin is stored by a trusted exchange or provider in the cloud and accessed through an app or computer browser on the internet. Any trading exchange you join will offer a free bitcoin hot wallet where your purchases will automatically be stored.
But many users prefer to transfer and store their bitcoin with a third-party hot wallet provider, also typically free to download and use. Why choose a wallet from a provider other than an exchange? While advocates say the blockchain technology behind bitcoin is even more secure than traditional electronic money transfers, bitcoin hot wallets are an attractive target for hackers. As Bitcoin.org warns: “Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank.”
There are many hot wallet providers, offering a range of wallet types. Here are a few:
Coinbase: Also a popular bitcoin currency exchange, Coinbase offers free online hot wallets and insures losses due to security breaches or hacks, employee theft, or fraudulent transfers.
Electrum: Software that allows your bitcoin to be stored on your laptop or desktop computer.
Blockchain: Like Coinbase, Blockchain is an online hot wallet; unlike Coinbase, Blockchain isn’t a currency exchange and is considered a less attractive target for hackers.
Mycelium: A mobile-only bitcoin wallet, with versions available for Android or iPhone users.
Although some hot wallet providers offer insurance for large-scale hack attacks, that insurance may not cover one-off cases of unauthorized access to your account.
Cold wallet A cold wallet is a small, encrypted portable device that allows you to download and carry your bitcoin. Cold wallets can cost as much as $100 but are considered much more secure than hot wallets. Cold wallet providers include:
Trezor: This company offers small, key-size cold wallets ranging from about $80 to $170.
Ledger Nano: Designed like a thumb drive, Ledger Nano has cold wallets ranging from about $60 to $120. When creating accounts for your digital wallets and currency exchange, use a strong password and two-factor authentication.
Read More : Obsessive-Compulsive Disorder OCD By: Dr. Ayushi Shrivastava
Read More : Unlock Your Potential With Good Nutrition By: Dr. Ayushi Shrivastava
Read More : INCREASE CORE MUSCLE STRENGTH FOR HEALTHY BODY by yoga practice and workout for get energy for the day
Read More : On the Pursuit of Meraki Moments
Read More : A Glimpse into my Trinbagonian Culture
Read More : Elusive or Expressive?
