The Capital
Published in

The Capital

A Guide to Cryptocurrency Wallets

As Bitcoin and other cryptocurrencies expand, hackers see new potential for thefts. How do you keep your digital investments safe?

  • Cold. You kind of hide the money under the floorboard or lock it in a safe. Such wallets do not require constant communication with the network. Private keys and money are stored on your device or paper. Yes, it is safe, but at the same time, it is not very convenient if you need to send money urgently.
  • Hot. Keeping money hot is the same as carrying banknotes and coins in your pocket. Cryptocurrency in such wallets will always be at hand in access from any device. It is good for quick sending to the exchanges or other people, but bad in terms of security, because the data, including the private key, are stored on remote servers.

Desktop Bitcoin wallets

Mobile Bitcoin wallets

Online wallets

  • Coinbase;
  • Circle;
  • Blockchain;
  • Xapo.

Hardware wallets

  • Trezor;
  • Ledger Nano S;
  • KeepKey.

Paper wallets

How to increase anonymity when using Bitcoin wallet

  • Using TOR or any other method to hide an IP address;
  • Creating a new address for each new transaction;
  • Using special bitcoin mixers that distribute bitcoins between hundreds of wallets and return the amount to the owner, thus confusing transaction traces.

How to protect Bitcoin wallet

Wallet encryption

Multiple signatures

Other ways

--

--

A publishing platform for professionals in business, finance, and tech

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrey Costello

Bitcoin-maximalist. Optimistic family man and miner with six years of age. I write about complicated things from the future for people of our days.