Bitcoin has grown considerably in popularity over the past year, with prices surging and more and more cryptocurrency followers joining the field. Bitcoins are held in wallets and traded through digital currency exchanges like Coinbase. There are various security risks inherent in each of these two components. Here are a few ways to store your Bitcoins that may be safer than others.
A desktop wallet offers a number of advantages over an online wallet. While online wallets are easily accessed from anywhere in the world, they are also more vulnerable to potential hacking. Thus, exposure of your security key online is reduced.
More secure than a desktop wallet is a hardware wallet. These wallets are bits of hardware, external devices like USB sticks which you can carry around on your person. An added benefit of a hardware wallet is the complete anonymity with which you can transact.
A paper wallet is also a relatively safe way of storing Bitcoin, although it requires a bit more advanced understanding of how digital currencies work.
Services are cropping up which allow Bitcoin investors to buy physical Bitcoins. The coin you purchase will have a tamper-proof sticker covering a predetermined amount of Bitcoin