Unlike normal cash, we keep Bitcoin in an electronic Bitcoin Wallet. Which Bitcoin Wallet is right for you? That’s what we can hopefully go over with you today.
There are 3 distinct types of Bitcoin Wallets. each one serves a purpose. There is a paper wallet. This is a wallet which for all intents and purposes is just a piece of paper with various digits and letters on them. For offline storage, the is probably one of the safest and most portable.
The next Bitcoin Wallet is the one you keep on your hard-drive and possibly backup when you can. As someone who had multiple hard drive crashes over multiple months, this one scares me. You need to have a backup and an online backup of your wallet. This means one on your hard drive, one on a backup drive, and another copy in your Dropbox account – or other safe online backup account.
Online Bitcoin Wallet
Finally, we have an online Bitcoin wallet. This is my preferred method to store my monies. I have tried various wallets in the past, and each serves a function. Coinbase is great for funding your Bitcoin account, since it can pull directly from your bank account, but the last time Bitcoin did a hard-fork split (to Bitcoin and Bitcoin Cash), no one got the Bitcoin Cash, if they had a Coinbase account. The same thing happened with Payza and Freebitco.in. However, the Peer-2-peer banking bitcoin website called BTCPop, gave each member the same amount of Bitcoin and Bitcoin cash. So when Bitcoin does the next hard-fork mid November 2017, I recommend having your Bitcoin in a BTCPOP account to ensure you get your monies in the different alt-currency.
Another thing I like about BTCPop, is that you can put money to work for you, earning 3% APR in a savings account. I get daily interest in this way. Mind you, I still keep my Coinbase account as well. Coinbase is great for when I want to add money to by Bitcoin balance. It takes a couple days, but when the account is funded, I can trade the Bitcoin to cash and back as needed, so I can play the Bitcoin market.
Finally the most important part about BTCPop, is that they hold just about every other Alt-Coin Wallets as well. So if you have Etherium, Lite Coin, Dash Coin, Bitcoin Cash, Doge Coin, or any other, it will hold those and allow for trading as well.
Offline Bitcoin Wallet
There is one final method to holding your Bitcoin I should mention. I don’t like it however because it can suffer from being banged up, lost, or even stolen – it’s storing your Bitcoin Wallet on a thumbdrive. If anything happens to the drive, the monies will be irrevocably lost. It doesn’t matter if it needs your fingerprint to unlock, it’s just not that safe of a method, unless you keep the thumbdrive locked up and a high security vault somewhere. If you do decide to get a Bitcoin Wallet, the trusted name is Treznor.
Eventually if anyone is able to make a Point-of-Sale terminal, I think that Treznor will be the wallet to hold – at least in part, for your walking around money anyways. But since there is no POS system yet, I would recommend waiting on purchasing one.
Let us know in the comments section below, what you think of our article on a Bitcoin Wallet.