How to Safely Store Bitcoin
If you’re going to invest in bitcoin you should think about safe storage. You want to minimize risk of loss and risk of theft and you want your loved ones to have access to your money if, heaven forbid you were to die.
Phone wallets can be lost. Backing them up to your e-mail provider means you’re trusting them and thereby increasing your risk of theft.
Very occasionally, phone and web wallets are hacked, but most bitcoins have been stolen from exchanges. If you want to use an exchange to buy or sell bitcoin that’s fine, but don’t store money on them! This is how people lost money with Mt. Gox.
I recommend password-encrypted paper wallets, with a duplicate copies stored in a separate locations. This solution takes about ten minutes. You’ll need a computer and a printer.
- Download a bitcoin paper wallet generator. The site below is the open-source project the original bitcoin paper wallet generator. zip file that will allows you to generate random bitcoin private keys here: https://github.com/pointbiz/bitaddress.org
This is the original bitcoin paper wallet generator. Its code is open-source and is continually peer-reviewed
2. Disconnect from the internet
3. Unzip the file you’ve downloaded and double click the html file:
4. Move your mouse around randomly and/or type in some random
5. Go to “Paper Wallet” and create
6. Physically connect to your printer and print two copies. Store them in separate physical locations in a waterproof and fireproof container. Share your passphrase with someone you trust, in case you die.
7. Clear your browsing history and clear your web browser of cookies.