Overview of Cryptocurrency Hardware and Offline Wallets
You can also store cryptocurrency in hardware wallets where you actually store the private keys of your cryptocurrency specifically like let’s say Bitcoin. And so we’re going to treasure. Sometimes they’re sold down and takes a while to get one. But these are great I really recommend them there’s a few other ones as well.
Basically the point of this is if you have a substantial amount of let’s say Bitcoin and you’re holding it for the long run for 10 years. You probably don’t want to trust it by putting it on an exchange like bit racks or some of the other big ones like Polonia X for example. Because they store your private keys on their platform. What that means if you have private keys are essentially the secure code of numbers and letters that allows you to own the certain amount of Bitcoin.
So if somebody gets access to that they can take your bitcoin. And that’s a human element to this perfect block chain. Decentralized system that can’t be hacked. As long as there’s a human element. Errors can happen and things can be stolen. But in bitcoins history since it’s been released it hasn’t been hacked once. But there have been multiple cases where people have actually lost their private keys and then they you know lost the Bitcoins because the private keys give you access to the Bitcoins you own. And again Bitcoin itself has never been hacked. It’s extremely secure. So what I would recommend is if you’re day trading then you know you have to have your money in on exchanges. But that’s OK because you’re you’re converting so often in my recommendation in that cases as you get profits pull them out and store them off line on a hardware wallet for example or you can even actually do a paper wallet which is possible.
And essentially if you just type in how to paper wallet Bitcoin.Tthey’ll walk you through how to do that. And there’s it’s actually really easy to do. Essentially you’re just writing down the actual private keys on paper and locking them up somewhere in your house in a fire safe case. Then when you want to cash in on your bitcoin you just find the piece of paper type in your your private keys . Then transfer your money back into your system and then convert your bitcoins to fit money or at that point in the future assuming Bitcoin has continued to grow. Just use bitcoin itself to buy things.
So private keys are what allows you to own the Bitcoin you’re given private keys whereas exchanges hold doesn’t really make sense to have a hardware wallet if you’re trading unless you’re getting some good gains and you want to transfer them and store them safely. But if you’re buying holding for the long run definitely recommend getting a trouser or some other type of hardware wallet and you’ll be able to take your private keys transfer them to your wallet. Then you know they’re off line they’re not in any exchange.
And that means you own them when you’re ready to sell. Just connect your trousers just a U.S. B device basically that has its own security systems to deal with its own PIN code. From there you can just transfer it back in and then sell your bitcoins. So that is a really great way to make sure your bitcoins are safe.