The most important thing is storing the bitcoins. There are really security concerns about storing the bitcoins. Major exchanges have been hacked , bitcoins worth millions were stolen. Tokyo based Mt Gox was hacked and 350 million$ was stolen , 78 million $ was stolen from Hong Kong based Bitfinex and there are thousands of stories of personal bitcoin thefts due insecure handling of private key. There are hundreds of hackers who are working day and night to break into systems , hack the servers or hack your account. All they need is your private key, either by hacking your account or by hacking the server.
- So , the first and foremost rule never keep all your bitcoins in your one pocket , DISTRIBUTE THEM among different wallets.
- Avoid keeping bitcoins in exchanges as they are more prone to cyber attack , put them in wallets.Different exchanges/wallets are CEX.IO , Coinbase , Coinmama , Whaleclub , Lake BTC , Bitit , VirWox , HitBTC, Changelly
- If your amount is small and you are interested in Trading keep it in premium Hot Wallets (Online Wallets) like Coinbase , Blockchain , Xapo etc.
- For the hot wallets, Always use the highest form of security available by the wallets , like SMS based authentication or Google 2 Factor Authentication or Finger Print Authentication.
- You can also keep your bitcoins on Windows / Android based software such as Copay , Mycelium Wallet etc.
- If you have more bitcoins and want to keep it ultrasafe then go for Hardware wallets like TREZOR . or the cheapest Ledger Wallet.
Not only Bitcoin, but alternative cryptocurrencies can be kept safely too. Protect your Ethereum, Litecoin, DASH and Zcash keys with a single device. Store them in TREZOR and ease your mind. Cost is 99$.
Ledger Wallet is a smartcard based Bitcoin hardware wallet bringing maximum protection level to your bitcoins without sacrificing usability or control. They have world class products such as Nano S, Blue and costs ony 58$ , cheapest.
“Bitcoin will do to banks what email did to the postal industry” — Rick Falkvinge,Founder of the Swedish Pirate Party