How to store your Bitcoin?
It is essential that before you start earning Bitcoin with us, you know where to store them. The place where you can store your bitcoin is called a wallet. It holds the private keys that are needed to access your bitcoin address.
Fundamentally, a bitcoin wallet holds many private keys which is why investors find it suitable to have several wallets to store their bitcoin. When it comes to storing cryptocurrencies in your Koinal account, there are hot and cold storages that refer to the wallets that hold them. Let’s have a look at both of them!
Storing your Bitcoins in Cold Wallets
Bitcoin cold storage involves the use of physical devices and materials to store your cryptocurrencies. These gadgets are encrypted with unique security codes, which help in protecting the bitcoin.
You can access your cold wallets at any time, and they can be further classified into the following:
The simplest wallet which you can use to store your bitcoin comprises of a few pages that have your public and private keys printed on it. We, at Koinal, suggest that a paper wallet is ideal for long-term storage of bitcoin and it is secure in the way that it is not connected to any network.
However, there are more chances of losing those printed pages. WalletGenerator offers facilities for printing your wallet keys on paper.
Hardware wallets are an effective way to store your bitcoins as they are present in the form of small external devices that can be connected to your computer to store your cryptocurrency data. A USB is a common form of an external device that is cold and secure.
These wallets are capable of securing online payments and some of them even support different currencies and have excellent web compatibility.
You just need to plug in the hardware device, access your wallet, send the currency by logging into the Koinal website, and finalize your transaction through our service. We recommend some of the famous hardware wallets such as Ledger, Trezor, and KeepKey.
Storing your Bitcoins in Hot Wallets
Hot storage of bitcoin refers to the digital-storage wallets of cryptocurrencies that can only be accessed on your computer or mobile devices via an Internet connection.
A hot wallet can be further classified into the following:
Electronic (Online) Wallets
Electronic storage of cryptocurrencies encompasses cloud hosting technology and has a more user-friendly interface. You can monitor your Koinal account from any device if you have the right passwords.
However, you will have to trust a third-party with your private keys. We advise you to check the security measures of the host server, which must be strict so that your money won’t disappear in case of hacking of the host server.
Software (Mobile) Wallets
You can download and install software directly on your mobile phones to secure your private keys. Most of them are easy to configure, free, and are available as smartphone application software.
Mobile wallets require continuous maintenance in the form of data backups. If your smartphone is corrupted or gets stolen, your private keys are not stored anywhere else, and you will lose control of your Koinal account. Some of the renowned mobile wallets include Airbitz, Abra and Bread.
Entering wallet addresses in your Koinal account
The wallet address is a unique combination of letters and numbers that is distinct for every wallet holder. You can incorporate your private wallet address in your Koinal account by using cryptocurrency exchange services, such as Binance.
Binance has added support for Koinal and it is helping the users to use their wallet addresses in transactions of different cryptocurrencies. Customers can now use their debit or credit cards to buy bitcoins through Koinal on Binance.
Here are a few steps that illustrate the use of wallet address in your Koinal account:
- Sign in to your Binance account wallet on which you will initiate your transaction. Let’s say you want to buy bitcoin, so you need to hover on your wallet and click on ‘Buy Crypto’.
- Select ‘Koinal’ and then click on ‘Buy’.
- Choose the token name and bitcoin (BTC) currency.
- Double-check the order details, including the total charges of transactions.
- Now you will enter the website of Koinal where you will be required to verify and fill specific information. It includes entering your unique wallet address.
We have to inform you that you cannot reach this step directly so you will need to follow the previous steps.
As a whole, there are many options to store your bitcoin. The storage selection depends on several factors such as security, ease of use, and personal preferences.
Let’s select a suitable wallet for you and then you can store our bitcoin with us!