Normally, we can get Bitcoin through the trading platform. Here, Bitcoins is saved in the wallet address created by the trading platform. The advantage of this method of is that you can trade at any time without worrying about the loss of the private key. Here you do not hold your own private key. Also, you need to trust that the security measures of the trading platform are in place. MT.GOX, and recently coincheck, has caused the loss to user funds due to hacking. To be on the safer side we need to be careful.
Use Private Wallet
When you have a large amount of Bitcoin and do not trade often, you can choose to use a private Bitcoin wallet. which is actually equivalent to “private key, address, and blockchain data management tools.” In general, you could use computer wallets, online wallets, and hardware wallets.
Advantages of Private Wallet
The advantage of this type of wallet is that it is easy to operate, but it is important that you need to keep your account and password safely. because if you lose it means that you lose the right to operate Bitcoin in your wallet.
Besides to these storage methods, there is a relatively safer way to save Bitcoins in the form of multiple signatures + paper wallets. Paper wallet, as its name suggests,
Records your Bitcoin address and private key information on a piece of paper. It can be generated in a QR code on a dedicated website and then printed. This method can prevent computer viruses from intrusion and can prevent key loss caused by computer hard disk damage, theft or accidental deletion.
Of course, if your hardware and professional conditions permit, you can also choose to use a full-node wallet to download and maintain full blockchain data by loading Bitcoin clients. The advantage of using this type of wallet is that it can increase the security and decentralization of the Bitcoin network, but such wallets not only require the user to have certain professional skills but also need a lot of memory space.
Also, read our article 10 Easy Ways to Protect Your Cryptocurrency. This article explains other methods to protect your cryptocurrency.
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