Cryptocurrency is stored on the blockchain, which is a decentralized digital ledger that records all transactions. Each blockchain has its own unique digital ledger that is maintained by a network of computers, called nodes. When a user creates a new cryptocurrency address, a corresponding public and private key pair is generated.
The public key is used to receive cryptocurrency, while the private key is used to access and manage the cryptocurrency associated with the address. The private key is stored locally on the user’s device, such as a computer or mobile phone, in a wallet. Wallets can be software-based, which are stored on the user’s device, or hardware-based, which are stored on a separate device, such as a USB drive or a hardware wallet.
Information about Bitcoin transactions is stored on the blockchain network, where every node has a copy of the ledger. This decentralization ensures that the information is not controlled by any single entity and is tamper-proof.
It’s important to note that while the cryptocurrency is stored on the blockchain, the private key must be kept safe and secure, as anyone with access to the private key will be able to access and spend the cryptocurrency associated with the address. You will need to store your keys in a wallet that is secure and functional to your needs. Most crypto users store their crypto in different types of wallets, depending on the amount or purpose of their crypto. Just like in real life, your wallet must be secured. You wouldn’t walk around with your entire life savings in cash in your pocket – would you? Fortunately, there are several ways to safely store your wallet.
Storing your Bitcoin involves creating a wallet and keeping your private keys safe. Here are the steps you can take to store your Bitcoin:
Choose a Wallet
There are several different types of wallets available, including software wallets, hardware wallets, and paper wallets. Each has its own set of pros and cons, so it’s important to choose the one that best meets your needs. Follow the instructions provided by the wallet app or platform to create a new wallet and generate a private key. Make sure to keep your private key safe and secure.
Secure Your Keys
Your wallet will hold your keys. Your public key is a string of letters and numbers that can be used to receive bitcoin. This is the address you will give to people who want to send you bitcoin.
Your wallet will also have a private key. A private key is the secret code that gives you access to your bitcoin. It is important to keep this private key safe and secure, as anyone with access to your private key will be able to access and transfer your bitcoin.
It’s important to research and choose a reputable wallet and to understand the security features it offers to protect your bitcoins.
After you have visited one of our Bitcoin ATM locations in Atlanta, choose one of the wallet options to safely secure your Bitcoin.
Cold Storage Wallets
A cold storage wallet or offline wallet is primarily used for long-term storage and are only brought online when you need to get the funds from them. These wallets are typically printed out and kept in a secure location so you can access the wallet at a later time. This provides a higher level of security as it makes it much more difficult for hackers to access the funds stored in the wallet. Cold storage wallets can take the form of a physical device, such as a USB drive or a hardware wallet, or a piece of paper with the private key written on it, also known as a “paper wallet”. For some crypto users, these cold wallets are generally considered to be the most secure way to store cryptocurrency.
Beef Up Your Offline Storage
Keeping your wallet offline has its risks. Just like cash, if you lose your paper wallet it is gone forever and should you lose your keys, you will not be able to regain access to the crypto that is stored there. Without the private key, the funds in the paper wallet are effectively lost, as it is not possible to recover the private key or reset it. The funds will remain in the paper wallet, but the user will not be able to spend or move them. The user will also not be able to transfer the funds to another address or another wallet. The funds stored in the paper wallet will be considered lost, as the private key is the only way to access them and it is not recoverable.
If the user has a backup of the private key, they can use it to restore access to the funds. However, if the user does not have a backup or loses it, the funds are lost forever. The user should be very careful when creating and storing a paper wallet and make sure to have a backup of the private key in a safe place.
It’s important to remember that paper wallets are considered to be a secure way to store cryptocurrency, but it comes with the trade-off that the user is the only one responsible for the security of the private key. Thus, it’s essential to be vigilant and take all necessary precautions to secure the private key and keep a backup of it.
Consider using something more durable than paper, such as a laminated QR code or even a metal card. Make sure that are no markings or physical damage to the QR code that could make reading the inscribed keys or QR codes difficult. It’s important to remember that the security of your cold storage wallet is only as strong as the measures you take to protect it, so it’s essential to be vigilant and take all necessary precautions to secure your private key and your hardware wallet.
Your Online Wallet
Lastly, there are online wallets. *These wallets are also called “hot wallets” and are connected to the internet. Hot wallets have a great reputation for their convenience and their streamlined, user friendly experience. Hot wallets are connected to the internet and are accessible from anywhere with an internet connection, making it easy to access your crypto and make transactions on-the-go. Hot wallets are faster and more convenient for making transactions as they are always connected to the internet and can process transactions more quickly. Some hot wallets offer multi-currency support and can store multiple types of cryptocurrencies, making it more flexible for the users. Hot wallets can be integrated with other platforms such as exchanges and payment gateways, making it easy to manage and use your crypto. A record of all the transactions made from the wallet address is stored in the wallet, which is useful for some crypto users completing transactions through the app or on the go. This can be used to track the balance and the movement of funds. The current balance of the wallet is also stored in the wallet.
Choose an online wallet from a reputable company that you trust. This company is holding all of your Bitcoins. Here at RockItCoin, we have created a secure digital wallet that allows you to have access to your funds or transaction data from anywhere at anytime. The RockItCoin online wallet gives you the financial privacy and security to help you feel at ease. After visiting a Bitcoin ATM location in Atlanta, download the RockItCoin wallet from the app store. The RockItCoin online wallet is simple and easy for anyone to use. To learn more about the benefits of the RockItCoin digital wallet click here.
Visit one of our Bitcoin ATM locations in Atlanta today to get started. Not sure if your Bitcoin is safe? Call today to talk to our team at (888) 70-BITCOIN.
