What Wallet Do You Store Your Bitcoin?

[CupCakeHugs007]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

[1714563399]

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[1714563399]

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[1714563399]

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[Nwada001]

Any open source self-custodial wallet will be a better option.

Why in search for crypto wallet to use, I will advice you select open source wallet. Electrum are one of the highly recommend wallet since it's easy to use and it's both mobile and desktop supported.

If you Bitcoin is worth enough for you to spay some few dollars in purchasing hardware wallet then I will recommend you check out the below list.
list of Open Source Hardware Wallets

[OmegaStarScream]

If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

That's because when you're using such a service, you're giving them full control over your funds. So if they ever go down (hacked, funds stolen, etc.) your funds will be gone forever.

And if you think that no such a thing can happen because the company is too big to fail, then you should know that we've had multiple incidents where millions of dollars were lost in the last year or so, with services similar to Nexo: BlockFi, Voyager, Celsius network, etc.

[mk4]

Is 8-12% worth it knowing that the custodial that holds your bitcoin could end up getting hacked or end up going insolvent? I don't think so. Bitcoin's price appreciation alone is more than enough for me; the extra yield poses too much unnecessary risk.

https://chainsec.io/exchange-hacks

[electronicash]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

depends if you trust Nexo. there used to be a lot of these platforms that pays interest like Blockfi. they filed for bankcruptcy afaik in the early days of this current bear market. It's surprising Nexo survived after Luna.

if it's a wallet that you meant, there is no wallet that pays interest. BTC price itself grows in the bullrun. be reminded that when you send your coins in Nexo, its not your coins anymore.

[Smartvirus]

Any open source self-custodial wallet will be a better option.

“Self custodian wallet”…

I guess that’s another way to put it. Sounds strange to me as I’m used to calling it non custodian wallet.

@OP, i would recommend Electrum wallet for you for a non custodian wallet or you could use Mycelium. Virtually a wallet that gives you a private key or seed phrase would be cool.

You could as well get hardware wallets or store in air gapped wallets (wallets that haven’t gone online by any chance). You’ve got a good number of options and ensure the safety of your keys or seed phrase, it’s your only chance of recovery.

[imamusma]

If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

I am more likely to prefer just a return from the volatility of the bitcoin price in the wallet that gives me custody than to expect a return of interest + price volatility from those who are in full custody of my assets. Remember, not your keys, not your bitcoins. This is the shortest lecture to tell you that when you do not have full custody of your assets then you are not the full owner of the assets.

[BIT-BENDER]

Let your priority when selecting a Bitcoin wallet be more of safety rather than interest, the aim of you holding Bitcoin already is because you are optimistic that it would be able rise and give you returns on investment so why worry about interest.

You can buy Bitcoin from other exchanges not just the one you were recommended, you can choose from decentralized or centralized exchange, I use the former. Or also you have the option of peer to peer but be safe use an escrow.

To your question,I make use of electrum wallet to save my Bitcoin, you can also try out cold storage wallet that keeps your Bitcoin offline.

[Hyphen(-)]

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

I don't believe in any Bitcoin or cryptocurrency wallet that promises to pay interest while saving my Bitcoin in their wallet; this proves to me that they have control of my Bitcoin because they can offer me more than what I invested in there, implying that they are using my Bitcoin for their personal business.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

For easy access, use an open source wallet like electrum because it is highly recommended due to security concern.

It is always advisable to avoid offers from wallets that guarantee any sort of interest because they are not secure and could go away with your investment at any point.

[m2017]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Because BTC wallets are created for only one function - storage. The percentages that such services promise, like Nexo, are not taken out of thin air, and no one will just hand out these percentages. This means that Nexo wants to get something in return, and this will be that you will give control of your assets into the hands of this service. Is it worth risking 100% of your assets for that 8-12% extra interest? I think these are inconsistent values.

BTC should not be stored in a wallet with a high interest rate, but in the safest wallet. Everything else is unnecessary risk.

[BitMaxz]

Nexo is offering this because they offer loans to their customers, there are threads here that talk about Nexo's interest from these 2 threads below, and most of the responses don't agree to put your assets in a centralized exchange because you no longer have full control of your assets.

- https://bitcointalk.org/index.php?topic=5380007.0
- https://bitcointalk.org/index.php?topic=5160150.0

That's a pretty bad idea than holding them to non-custodial wallets unless you are willing to lose your investment. Remember high returns is always risky it would be best if you hold BTC in your wallet that you fully control and let the value makes you profit.

[Cricktor]

If you want to start with a software wallet, you should prefer the time-proven and open-source ones like Electrum or Sparrow. Try to use a spare computer with Linux as OS and don't do your daily computer shit on it. This way you minimize daily handling risks and exposure to bad stuff via the Internet. It depends on how computer and security savvy you are.

Always download software wallets from the official sites and verify your downloads thoroughly. There are threads here in this forum that describe the verification step-by-step. Don't skip the verification, it's important to be sure your get and execute the real and untampered software wallet.

When your stash grows, consider to buy a decent hardware wallet (no, that is not a Ledger, period!). A hardware wallet protects your wallet and your private keys from a potentially unsecure computer. Malware can't gain access to your private keys and can't tamper with your transactions as long as you carefully inspect every transaction that is presented to your hardware wallet to sign it. Don't skip the thorough verification of every transaction to be signed on your hardware wallets display only. Don't trust your computer or mobile device, only trust your hardware wallet's display.

[Stalker22]

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Wouldn't it be best to store the BTC in a wallet that pays high interest?

No! If your wallet earns interest on the funds you hold, it means that it is a custodial wallet, and you are not the true owner of your coins; instead, you have entrusted them to the wallet provider for safekeeping. A recommended method for storing your coins is by using a self-custody, open-source wallet, such as Electrum or Bitcoin Core.

[Nwada001]

Any open source self-custodial wallet will be a better option.

“Self custodian wallet”…
I guess that’s another way to put it. Sounds strange to me as I’m used to calling it non custodian wallet.

Yea, I do call it a none-custodial wallet until I came across a comment by JayJuanGee (if I could remember correctly) where the reason why it should also be called self-custodial was given: "stating that the user who owns and holds the wallet has full control over it, and when one owns something and that belongs to the person alone, that's self-property". So the same is applicable to a non-custodial wallet, which could also be referred to as "self-custodial" since the owner is fully responsible for their own security.

Security: When it comes to cryptocurrencies, security should be your top priority. While some wallets offer interest, they might not provide the same level of security as reputable hardware wallets or cold storage options. Consider the track record, reputation, and security measures of the wallet provider before storing your assets.

In this day and age, information like ratings and recommendations gotten online regarding anything related to finance should not be taken too seriously, for anyone can now pay people to give a nice review and recommendations over their app. But deep down, there are things going on that we don't know about. That's why I always recommend people come to this forum to search and ask questions regarding any particular wallet, for there will always be opinions from people who have used the wallet and will share their review based on direct experience.
 

[Zaguru12]

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

Because they want total control of there funds that is why they prefer the self custodian to wallets. Nexo and its likes act like traditional banks, they hold on to your funds and loan them out to borrowers with the promise of a percentage which is not worth the risk of leaving funds there. Most of these entities end up running into bankruptcy and that is the end for you funds and the so called percentage. So my advice will be like the rest, just keep your funds on self custodian wallets. The volatility of bitcoin it self is a better percentage if you hold for long and buy at the right time/price.

But if you’re to earn more aside holding, then it would be preferable to learn about bitcoin trading. Trading is risky but at least you can have custody of your funds all the time.

[Dr.Bitcoin_Strange]

@OP, some members here have given good advice,  only you can decide which one you want to follow. Personally, for me, I don't see any reason to keep my assets in a centralised wallet for just some little interest in which my assets are not 100% secure (just what @MK4 said). Although it's your choice to make, I have suggested that if you are using Mobile , then you should use Bluewallet, but if it's on Windows, then you can go with Electrum wallet. Perhaps, if you have enough funds to purchase a hardware wallet, that would also be the best.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[nelson4lov]

~Snipped

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

I wanted to provide some clarity as to how these custodial wallet providers like Nexo actually get the rewards they pay out to their customers as interests for being the custodian of their crypto. It's pretty simple actually, they give your Bitcoins out to lenders and in turn, you get to earn from the proceeds. But that's not always the case and you might end up actually losing both your Bitcoins and the supposed interest.

Here's a link to the SEC filing against Gemini: https://www.sec.gov/news/press-release/2023-7

FYOR, this is a similar product offering to Nexo. The best and primary way to store and hold crypto is self-custody. Afterall, the best way to get something done is to do it yourself. The same applies for taking responsibility for the security of your Bitcoin.

[sheenshane]

Wouldn't it be best to store the BTC in a wallet that pays high interest?

No, that's not important at all or called "the best".
The best purpose of storing your coin is to have better security for your valuable asset and always remember the golden rule of crypto space "Not your keys, Not your coin".  When using a custodial wallet, you are relying on the wallet provider to securely manage and protect your funds. You don't have direct control over your private keys, which means you are placing trust in the custodian to act in your best interest.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

It's very risky to deal with this action if your sole purpose is to get interest while you are holding, it seems like the same concept as storing your money in traditional banks.  You let them have full control over your money, what's the purpose of Bitcoin being here and the word of having decentralized nature?

[bettercrypto]

I'm new to Cryptocurrency and instead of learning the in and outs of trading, I decided to buy BTC and hold. The reason being, is because of the dozen websites I've visited they all claim BTC will skyrocket in the upcoming years. People tell me that if I buy BTC on Coinbase, then I should transfer the BTC to a Cryptowallet.

Wouldn't it be best to store the BTC in a wallet that pays high interest?

Nexo: Nexo pays its customers high-interest rates on crypto, stablecoins, and standard currencies such as USD, EUR and GBP. Storing crypto or stable coins on Nexo will earn interest back in those coins at a rate of between 8% and 12%. Nexo pays interest of 12% on standard currencies such as the U.S. dollar and the euro, far more than any typical bank pays.

But there are other crypto wallets that pay high interest.
If someone was to buy and hold, why would they get a wallet that doesn't pay interest?

I'm not saying that what others say is right or wrong, I guess my point is that you should buy Bitcoin based on your belief and decision and not because of what others have told you. Because it seems like you're just putting your Bitcoin at risk in reality.

Then if you want your Bitcoin to be really safe, it's better to keep it hidden in a wallet where only you really have access and not the one you think you have access to but the truth is that it's not really. It's still better to put Bitcoin in a Hardware wallet or Electrum than to put a large amount of Bitcoin in Coinbase, or any centralized based platform that we know we don't have 100% access to because for example if there's a problem that's for sure you will have a problem there.

[tabas]

That's also my thinking before when I was still quite new to this market. But OP soon you'll understand why it is important that everyone here will tell you that it's best to hold your Bitcoin with the wallet that you're holding the private keys. Especially if the amount you've got is already a lot and already a life savings of yours. You know that these exchanges are vulnerable to dynamic changes and policies that's why you can't trust them wholly with your funds thus, the worst comes and they get hacked and you have no assurance you'll receive a full refund.