What is Bitcoin?
Cryptocurrencies have become a popular choice for online shoppers, investors, and bettors for a few reasons. They offer a fast and secure way to send funds across the internet. Just like with traditional currency, cryptocurrency refers to a wide range of different currencies. Many different kinds of cryptocurrencies exist, and each one offers its own quirks and features.
Among the options, Bitcoin is the clear king of cryptocurrencies. It’s the most well-known and commonly accepted crypto by a large margin. Created in 2008, Bitcoin has come to represent cryptocurrencies’ potential when used by a broad market. Bettors looking to branch into using crypto often look to Bitcoin for its accessibility and simplicity.
One of the many things that make cryptos like Bitcoin unique is how they’re stored. Bitcoins only exist as digital assets, so they can’t be stored in a standard wallet or bank vault. Instead, they’re kept inside of a digital folder accessible only through special programs called Bitcoin wallets. There are many different kinds of wallets explicitly made for Bitcoin that a bettor can use, so here are the types of wallets you can use to store your Bitcoin.
Bitcoin Wallet Types
There are two major types of Bitcoin storage; hot and cold. Hot refers to storage connected to the internet while cold storage is kept separate from the worldwide web. Both types come with advantages and disadvantages that bettors should know before deciding how to store their Bitcoin.
Hot wallets are the more common form of crypto storage. Hot wallets allow users to send and receive Bitcoin as soon as the user wants. Hot wallets exist for every crypto, and many are made explicitly with Bitcoin in mind. Hot wallet software is often completely free to use, but they’re less secure and more vulnerable to regulation than the alternative. Hot storage is ideal for bettors who want quick access to their money.
Cold storage is a more popular pick for investors for a good reason. Cold wallets are physical devices that can hold digital currencies. They must be physically connected to a computer to transfer or receive Bitcoin, thus offering increased security and keeping your crypto safe from any internet-borne threats. Cold storage is much pickier about which cryptos they can hold. They’re also not free, and the value options can start near €100. Cold storage devices are ideal for long-term bettors who use their crypto as an investment in itself.
Short and Long Term Storage
Another important factor to consider is the length that you plan to use Bitcoin for. Many bettors like converting their money into Bitcoin only to use for betting, and plan to convert it back to their country’s currency later. Others value the flexibility of crypto and use it for many things beyond betting. Your planned time frame can have a significant impact on which storage method is right for you.
Hot wallets are ideal for short-term bettors looking to take advantage of cryptocurrency’s benefits on betting sites. Unlike traditional deposits, crypto can enter or exit an account within the hour. People only looking to use crypto for betting would appreciate a wallet that’s continuously connected to the internet.
Cold wallets are a better option for bettors who wager occasionally or use crypto for other purposes. Having large sums of your wealth tied into a digital asset can give some anxiety; the peace of mind in having a physical object that can’t be hacked into is worth the initial cost. Having to connect a fancy thumb-drive into a computer isn’t that much of an inconvenience.
Some values can overwrite your long or short-term plans. If security matters above all else, go with cold storage. If you prioritize buying and selling at the perfect price points, hot wallets are for you. Keep in mind that there are additional ways of keeping your Bitcoin secure.
Importance of Security
If you’re using Bitcoin, you’re probably familiar with the safety afforded to cryptocurrencies. This safety can also result in some unfortunate losses from users forgetting their passcodes, deleting their wallets, etc. The Wall Street Journal even reported that a whole fifth of existing cryptocurrency has been lost due to security mishaps.
Regardless of which wallet you pick, you can take several additional steps to keep your Bitcoin safe. All wallets will come with a private key that’s unique to every user. This key is the password needed to access your Bitcoin. While Bitcoin’s digital nature helps keep it safe, it’s recommended to keep your password somewhere physical, like a private notepad. If something ever happens to your wallet, that passcode will be an essential part of fixing it.
Many wallets also offer recovery features, sometimes involving long strings of seemingly-random words that can be used to access an account if other log-in details are forgotten. Storing these kinds of security measures physically can reduce the chances of cyberattacks on your Bitcoin wallet.
Thunderpick accepts Bitcoin and other cryptocurrencies as a deposit method and offers complete security and fast withdrawals on any winnings.