How to save your Bitcoins (or any other virtual currencies)?
But what is a wallet?
You want to buy Bitcoins and therefore either keep them for investment purposes or spend them. For this you need a wallet.
A wallet is actually an electronic wallet. That is, a Bitcoin wallet is client software that you must install on your computer. This software allows you to connect to the Bitcoin network automatically to download the latest state of the network and to keep your currencies. It will give you the ability to keep your private key.
In fact the software will allow you to create Bitcoin addresses to receive or send your Bitcoins.
In this sense, it comes close to managing an electronic bank account to send, receive or store your Bitcoins, and track your transactions. More technically, your Bitcoin portfolio will generate and store pairs of public and private keys that will allow you to make your transactions and ensure their integrity. As a reminder, the public key is the Bitcoin address, and the private key, your signature.
How to choose your wallet?
There are many wallet, so how to choose it?
First you have to choose it according to the media you are going to use.
– Inline, like “Circle”, for example. Desktop, like “Armory” for example.
– Mobile on your smartphone, like Mycelium wallet, for example.
– Or still physical (paper wallets) like Ledger, for example.
Then, in these categories, there are two kinds of portfolios:
– “Full-node” portfolios, ie portfolios that will store the entire blockchain on your computer and allow you to be an active user of the network. The disadvantage being that you must have sufficient disk space to save and update the blockchain.
The light wallets. Who do not store the blockchain. They rely on servers while checking the integrity of the data. It will be up to you, for each of the sites and applications, to check whether it is a lightweight portfolio or not.
For beginners, the online portfolio is probably the easiest way. You create your portfolio directly on the online portfolios website, following the step-by-step instructions. The interest of this portfolio is not to have to download an application and to be accessible from any computer. So if you have not saved your computer data, your wallet will not disappear in the event of a computer failure. The disadvantage is of course safety, because you entrust your Bitcoins to a third party. It is therefore essential to ensure the reliability of the chosen site and its security measures before connecting.
The mobile portfolio.
It’s about downloading to your mobile phone an application that typically takes little memory and then set up your wallet. All this takes only a few minutes. The advantage is that you have your Bitcoins everywhere with you. In addition, payments are fast and you can make them from anywhere. You can pay directly with your phone. At the security level, you will need to lock your smartphone and application with a code.
The office portfolio (on computer).
Here also you will need to download an application and follow the instructions step by step. This is probably the safest way to keep your Bitcoins. But it will depend on how you use it: You will need to make backups and put your wallet on a USB key.
The physical portfolio.
In addition to its various media, it is also advisable to print the encryption key on paper and to put this precious paper in a safe place, and even in several places (it is a paper wallet).
It may also be wise to use a computer dedicated only to your Bitcoins and not connected to the Internet.
Creating your Bitcoin portfolio (or any other virtual currencies) is therefore not very difficult, but it is more difficult to choose in which kind of portfolio to save them, but you still have the possibility to opt for several kinds of wallets at the same time, which will allow you to ward off any eventuality.