Which One to Get Bitcoin Wallet Choice
One way or the other, you’re going to store your Bitcoin information in a crypto wallet. The primary division between the wallet types is exchange vs. private wallets. The exchange wallets are the crypto storage option within exchanges. They do offer security but are far from the safest way to go.
Private wallets, on the other hand, boil down to your preference. Let’s look at the best option for your crypto wallet.
The Main Focus
Cryptocurrencies, contrary to what some believe, can be long-term investments. You can make your trades and leave the balance to play out for months or even years to follow. On the other hand, you can trade them actively, on exchanges, via brokers. Cryptocurrencies, particularly Bitcoin, can nowadays be used to pay for various services and goods, as well.
The main choice here boils down to choosing between safe storage and active use, to make things simpler. Safe storage means less convenience, while active use requires fewer safety protocols and more streamlined, less secure application.
Choosing your main focus is where you should start when considering which one to get bitcoin wallet options get much broader from there.
Safety should always come first, and this especially goes for your finances. Seeing how cryptocurrencies are tech-oriented, they are susceptible to various hacks and security threats. All crypto wallet options offer security steps and features, but some are better than others. Let’s see some of the safer alternatives that you can choose.
Hardware crypto wallets usually come in USB form and are easily connectible to all computer devices. Some can even work with smartphones and tablets. The hardware wallets contain the user’s private key and are safe from online attacks, as they are kept in physical form and aren’t online for long periods. However, the safety threat window does exist – while they are plugged in.
Hardware wallets are very responsive, reliable and resilient, and protected from a variety of viruses. They are a fitting choice for long-term crypto storage. However, lose a hardware wallet, and you lose your private key. Without the private key, you’ll never be able to access your funds.
Paper crypto wallets are physical pieces of paper featuring a unique QR code. Naturally, they are an offline crypto storage option that keeps the private key information within the QR code itself. There are security barriers before one can get to the private key from the QR code that includes a password.
Paper crypto wallets are even easier to use than hardware wallets, as all you need to have to access your funds is a mobile phone with a QR scanner app on it. If you happen to lose this piece of paper, though, you lose all your funds stored on the said private key.
Most devices such as computers, smartphones, tablets, and flash drives can be turned into homemade crypto storage options. This is performed using a piece of specialised software. Keep in mind, however, that these options may need tens of gigabytes. Take Bitcoin, for example–it requires storing vast amounts of chain data, which is constantly updated after and during transactions.
Although still a fairly safe option, homemade storage often doesn’t benefit from various antivirus and failsafe options than purpose-made hardware wallets. After all, it all depends on the device’s functionality – if it breaks down, you lose your funds and have no way to get your money back.
On the other end of the spectrum lies the need for active use, such as trading. As someone who trades in cryptocurrencies daily, you don’t have the time to go through all the security measures for each trade. Plus, you’d have to transfer your funds from your private wallet to an exchange wallet, trade, and then move the funds back to the private wallet.
You’ll quickly learn that nothing beats the exchange wallet when it comes to active trading use.
So, What’s the Answer?
Which one should you get? Bitcoin wallet choice comes down to compromise to an extent, but never at the risk of your entire crypto balance.
Traders don’t disregard safety. They use both private and exchange wallets. The best way to go would be to set aside a sum that you’re going to use for day-to-day trading, transfer it to an exchange wallet, and leave the bulk of your balance on the private one.
As for the private wallets, for maximum safety, use as many as possible, and divide your balance across the board.
Author Bio: Hitesh is a digital marketing strategist and entrepreneur with more than 15 years of experience in digital marketing, start-ups, branding, and customer acquisition strategies. Hitesh is the CEO and Founder of Reposition Group, which specialises in digital growth strategies for companies in the cryptocurrency market such as Bitamp.com.