Where and how to store your Bitcoin and Cryptocurrency? Safe and Secure Options

[Faucetspro]

Where and how to store your Bitcoin and Cryptocurrency? Safe and Secure Options

Because a “wallet” is essentially the same as a bank account. Allows you to retrieve bitcoins and other coins, save them, and transfer them to others.

You can think of a wallet as your virtual connector to the Bitcoin network, just as your online bank account is a common financial system connector. Wallets contain private keys; secret codes allow you to use your money. In fact, it is not the coins that need to be kept safe, but the secret keys that give you access to them.

In short: A crypto or Bitcoin wallet is simply an app, website, or device that handles your private keys.

Learn More: https://faucetspro.com/top-secure-bitcoin-and-cryptocurrency-wallets/

[JeromeTash]

Who told you an exchange is a type of wallet?  

An exchange is just an exchange. Not a wallet where you keep your Bitcoins. There are other types of wallet you haven't talked about such as web wallets, software wallets, paper wallets and yet you just rushed to call an exchange a type of wallet. I guess you didn't want to miss out on those referrals, did you?

You are the people who misinform newbies.

[tranthidung]

Who told you an exchange is a type of wallet?

It is wallet but custodial. Most of exchanges only give customers custodial wallets. They don't give private keys or mnemonic seeds to customers.

Not a wallet where you keep your Bitcoins.

Shortly, it is true.

More explanations for exchange wallets

• Still good for people who are not good in security and have bad web-surfing habit. Exchange and their wallets with multi-layer of protection can protect such guys. It is safer for them to keep their bitcoin on exchanges. But on very reputable exchanges AND with the awareness about risks of hacks on exchanges.
• For people who have good habit and good security (on their sides): It is best to use non-custodial wallets to store their bitcoin.
  
  • Bitcoin Core: download from Bitcoin.org or Bitcoincore.org
  • Electrum wallet (download from electrum.org)
  • Wasabi wallet
  • Verify your wallets !
    
    • Verify Bitcoin Core
    • How to Safely Download and Verify Electrum
    • Verify Wasabi wallet

[BrewMaster]

you are using the word "hot wallet" wrong. the exchanges are NOT hot wallets they are custodial accounts that have 100% control over the users money and user has absolutely no power.

a hot wallet on the other hand is a wallet that user has 100% control but instead of being kept offline it is connected to the internet. for example an electrum wallet on your PC that you use to connect to internet is a hot wallet.

[batang_bitcoin]

Exchanges being said as hot wallet is going to mislead a lot of newbies. They'll think upon reading your article is that it's okay to store a lot of their crypto assets in exchanges.
That's just very wrong.

[hatshepsut93]

I'm sorry, but people with poor understanding of crypto shouldn't try to educate others. It's completely misleading to say that there are two types of wallets - hot wallets and hardware wallets, and that exchanges are hot wallets.
There are actually many ways to classify wallets. Hot means a wallet that is exposed to the Internet. A cold wallet is isolated from Internet and other devices, it's used to sign transactions offline and then broadcast these transactions from another device. Software wallet is run on some sort of computer as an application, a hardware wallet is a dedicated wallet device. Custodial wallet is a wallet where the private key is controlled by some other party, rather than the user. The opposite of it is a self-hosted wallet.

Exchanges shouldn't even be considered wallets, they are what they are - exchange accounts.

[mk4]

I'd agree with most people here that you should at least know what you're teaching, before actually writing such articles.

Look, I'm not against creating affiliate websites because we all have to have our own ways of making money somehow, but at least wait and take your time until you have a good grasp of the topic you're going to write about. There are affiliate websites that make money while spreading GREAT information, while there are affiliate websites that just churn out half-assed articles just to make money from the affiliate links. Strive to be the former.

[vintages]

It is safer for them to keep their bitcoin on exchanges. But on very reputable exchanges AND with the awareness about risks of hacks on exchanges.

You have good valid points but no matter how an exchange claims to be safe with multi layers of protection, it's still best not to leave coins in it no matter what. IMO.

Even newbie who are serious about Bitcoin and just starting out with it for long terms, should learn about proper Bitcoin protection. I feel that is the main basic step of Bitcoin investment cause its easier to keep your bitcoin in an exchange and procrastinate about moving it to a safer place.

[ShowOff]

Even newbie who are serious about Bitcoin and just starting out with it for long terms, should learn about proper Bitcoin protection. I feel that is the main basic step of Bitcoin investment cause its easier to keep your bitcoin in an exchange and procrastinate about moving it to a safer place.

Exchange wallet is not a safe repository of asset for the long term and is never recommended to anyone despite their poor web browsing habit. Some exchange can implement multiple layers of security on their site, but they are not completely safe from hacking activity. Storing your bitcoin and asset in an exchange wallet mean that you have agreed to further risk. Remember one case, not your key, not your bitcoin.

Exchange wallet will only be suitable for temporary use if they are always active in trading (relevant for trader). Furthermore, if you want to hold it for the long term (investor), then a non-custodial wallet (electrum, bitcoin core) is the recommended choice beside cold wallet.

It look like the OP has to revise the misinformation on its site so that beginners are not exposed to misleading information. Beginners need to get the correct information about their wallet as well as where they store bitcoin safely, exchange wallet are just a temporary stopover if they are actively trading and they need to start thinking about a secure wallet if they want to hold them for long term.

[jrrsparkles]

If you have a large amount of money, you can store a small amount in the "hot wallet", and you can store the rest in the "cold wallet". This will be a bit safer, and you must keep the private key of the cold wallet well and don't lose it, or Back up to a computer without an internet connection,

Storing the private keys digitally has the risk no matter it is connected to internet or not, let's assume your computer's hard drive got crashed due to electrical or physical reasons then you can never access the funds or have to spend huge amount of money for hard disk recovery purpose.

[Ethan151]

Nice topic and interesting but I will like to ask a question, is there any bitcoin wallet that has a limit transfer per day just like the bank, because someone can be on a gun point to review his pin character or seen imputing his keys without knowing., how can we save this situation.

[GreatArkansas]

It is safer for them to keep their bitcoin on exchanges. But on very reputable exchanges AND with the awareness about risks of hacks on exchanges.

You have good valid points but no matter how an exchange claims to be safe with multi layers of protection, it's still best not to leave coins in it no matter what. IMO.
(.....)

These are one of the advantages of using cryptocurrency exchanges as wallets. I know a lot of people using it, and they are not aware of the risk behind it, if you value privacy and "NOT YOUR KEYS, NOT YOUR BITCOINS", you will hate people doing it.
But we can't avoid such people that got their reasons about they are using cryptocurrency exchanges for storing Bitcoin, maybe they have a reason that they can't able to keep safe their wallet seed phrases or private keys for various reason.

[Darker45]

Nice topic and interesting but I will like to ask a question, is there any bitcoin wallet that has a limit transfer per day just like the bank, because someone can be on a gun point to review his pin character or seen imputing his keys without knowing., how can we save this situation.

There are a lot of different kinds of wallets. There are those with limits and those without. Those wallets which give you complete control over your funds don't have limits. After all, it would be a complete irony if you're being offered with total control of your funds and yet you are also given limits as to how much you could withdraw or move in a day.

Those wallets which provide daily withdrawal limits are custodial and centralized wallets, ones which do not give you control of your funds. They're normally exchange wallets.

So choose which is which. But I guess, at gun point, a daily limit won't help much.

[khaled0111]

Nice topic and interesting but I will like to ask a question, is there any bitcoin wallet that has a limit transfer per day just like the bank, because someone can be on a gun point to review his pin character or seen imputing his keys without knowing., how can we save this situation.

This is exactly why it's not recommended to store all your coins in one wallet. Keep a small amount in a hot wallet for daily transactions and keep the rest in a cold wallet.
Also, some hardware wallets let you create a hidden wallet by adding a passphrase to the main wallet seed. This can help you against the $5 wrench attack as the attacker wouldn't know about the existence of the hidden wallet.