The main difference in the way of storing cash and bitcoins is that cash is kept safely in a physical wallet whereas bitcoins are kept in another form of wallet known as digital wallet. It entirely depends on the user whether they want to use this digital wallet online or offline. From mobiles to laptops and tabs to computers, one can easily keep their bitcoins in their charge without facing much risk of losing them to illegal activities. The main thing you need to ensure is using personal keys and codes to access the cryptocurremcy when in need.
But the main query here is- how safe do we consider these digital wallets? The answer to this directly relates to where to maintain the wallet and how you handle it. It gets important for you to keep the private key safe and prevent the account from hacking. Only then your bitcoins will stay safe under you. In case you do not have the private key, you would not be able to access your bitcoins again. This will make you lose a whole lot of money from your hand.
Let’s take a look at some of the options of storing your bitcoins safely online and offline:
- One can indulge in the cold storage mode of storing bitcoins. This means that your cryptocurrency will be kept in an offline mode of storage such as hard drive and will not be accessible for hacking. This will prevent it from all kinds of thefts. You can keep few bitcoins in the online digital wallet and keep majority of them in the offline wallet to be on the safer side.
- Make sure that you create a backup of your complete bitcoin wallet as much and as frequently as you can. If you experience a computer failure, you can at least depend on the back up history in order to recover the currency placed in your digital wallet. Create backup for all the files that you have and keep them safely at different locations such as USB, hard drive, and CDs. In addition to this, create a strong password on it to be double safe.
- It gets important for you to keep your software updated all the time. Using old versions might not be safe for your cryptocurrency and may leads to any kind of hacking. Since the latest versions will have superior techniques of securing bitcoins, it will be of accurate purpose to you.
Also, you can go for encryption as well as multi-signature settings to ensure that your bitcoins are safe and no one has access to them without your knowledge. For more details on how the industry of bitcoins works, read this and broaden your horizons for a better idea on the same.