Here is an important question for any cryptocurrency owners or lovers out there: where do you store your money? As a matter of fact, where do you store Bitcoin in particular? Did you know that one BTC owner & user stored his cash in his wallet with over 111,000 Bitcoins? This was close to $850 million! However, there are always some pros & cons when it comes to your proper, safe, as well as secure storage option for your cryptos. Keep on reading and understand all there is to it.
12 pros and cons of Storing Bitcoin in a Single Wallet
Top 7 Pros:
- Every wallet contains a set of private keys. With these keys, you are secured and allowed to access your currency. Your key is solely unique & known to you, which is what makes it safe for anyone who is careful enough when it comes to his or her money management.
- Hot wallets = online wallets. Hot wallets run on your phones, tablets, or computers. It is a convenient tool for easier log-in and quick access to your money, as well as assets.
- You should know how to store & how to approach your money. Most experts say and recommend that you have your spending money in a checking account while the bulk of your money is in savings for proper defense against attackers.
- Cold wallets are another option for you to consider. This is the best option since this wallet is not connected to the internet, which means that it has a lower risk of being compromised. It is also known as an offline wallet that has software that works in parallel so that you can view your portfolio without putting yourself out there as an easy target to the rest of the world.
- Have a backup wallet and think of this step early on. A history of regular backups may be the only way to recover the currency in the digital wallet. You should have different storing locations, such as USB, hard drive & CD, with all different and strong password options on each one.
- Works well only if you have done your software updates regularly. These are not that common, but they are quite effective. Without proper & updated software, you are an easy target for hackers. Good thing is that this software often updates on its own without your assistance, as long as you allow for this feature.
- If you are quite forgetful, low-maintenance, as well as someone who enjoys practical solutions – one single wallet might be better for you. No need to hassle or worry with constant switch-ups, password updates, as well as data.
Top 5 Cons:
- You are out there for everyone to see in the system. Blockchain ledgers reveal all transactions to those who take the time to explore them. Although your identity is hidden, your numbers aren’t, which is something that bugs a lot of people.
- Bigger investors, as well as some private businesses, will have a hard time moving large sums of money since the gap will become easily visible in the system, meaning that everyone will know who owns the money. In this case, it is way better to withdraw and move it little by litte.
- You don’t want to be an easy target for hackers or criminals. However, everyone can know of your digital currency & its existence, especially if you hold it all in one place.
- You should never lose your key. If you do, there is no going back and saving the situation. Your private key code can’t be recovered. If all of your tokens are in one place and you end up losing your much-needed key code, you are in big trouble.
- Lastly, this final downside can make an impact more so on your surroundings than it does on you, but it is still considered to be a con. Just because blockchain is so transparent, everyone can see your transactions. If you end up moving all of your BTC in one move, the action of this magnitude can cause panic due to dumping coins. One single investor can have a dramatic impact on the entire cryptocurrency market.
Can you improve the security levels of your exchange wallet?
There are multiple steps that you can take to further enhance the security, such as:
1. You can have an antivirus protocol
One of the most important steps you can go for is to set up the antivirus protocol protection. An additional layer of security will help out every individual and with every situation, as well as with their sensitive information.
2. Consider cold storage wallet
By using a cold storage wallet, you can further diversify your money & have everything spread out effectively. You will fight off cyber attacks and hackers with ease.
3. Get yourself the two-factor authentication
Two-factor authentication is one of the most common methods that you can take. It works with basically every single platform & advice, such as your social media. People who forget or end up ignoring this step are 70% more likely to have their accounts compromised. Have an additional layer and protect yourself at all times, it doesn’t cost money, and it only takes you 3-4 minutes to set up.
How to earn money, and who to trust?
Are you ready to start trading, and you want to keep your money in the right wallet? Well, if you want to try out a powerful trading system and you want to trade within a safe environment you should check out BitcoinFortress. With their help, they will place bets on over 120 currency pairs featuring BTC and fiat currencies. You can start trading with Bitcoin Fortress with as little as USD250 in trading capital! How awesome is that? All you have to do is invest 20 minutes of your spare time each day to profit, it’s that simple and it is ideal for anyone!