Before you start looking for where to buy Bitcoin or any other cryptocurrency, you need to have a plan on where you’d store it after you have bought it. Cryptocurrencies aren’t like fiat money that can be kept in a wallet and placed in your pocket. It takes more than that to keep your cryptos safe. You’ll be keeping your cryptos in a wallet, but it’s not going to be a regular wallet. There are special wallets designed to hold Bitcoins.
Types of Cryptocurrency Wallets
1. Electronic Wallets
These wallets are in the form of downloadable software. They can also be hosted in cloud storage. A downloadable software wallet is simply a formatted file that will be installed on your device to facilitate transactions. A hosted wallet will be accessible by a third party.
2. Software Wallets
These wallets are downloaded directly on your device. You’ll have control of your security keys. It’s easy to configure, and it’s free. However, these wallets require regular backups to remain secure. Also, if your system gets corrupted or stolen and you don’t have your keys stored somewhere else, you’ll lose your cryptocurrencies.
3. Online Wallets
These wallets store your cryptocurrencies in the cloud. They are convenient and easy to set up. However, they aren’t too secure.
4. Mobile Wallets
A mobile cryptocurrency wallet is an app that can be downloaded on your smartphone and used to store cryptocurrencies. They make transactions convenient to carry out.
5. Hardware Wallets
These are in the form of small devices that can be connected to the web when you want to conduct a cryptocurrency transaction. They are secure because they are offline except when you want to conduct a transaction.
6. Paper Wallets
You can also store your cryptocurrencies in paper wallets. They are simple pieces of paper with your private keys and cryptocurrency address. They are secure options as they are not connected to the internet.
Pick one before you go ahead and buy your cryptocurrencies.