How to Store Your Bitcoin and Cryptocurrencies

Now that you have successfully become more comfortable with the idea of Cryptocurrencies and made your first purchase, you need to decide where you want to store them.

1. Keep it on LUNO or another exchange I show you how to set up in this course.

  • This is the easiest option and pretty secure as long as you set up a 2fa for each exchange.
  • Exchanges have been hacked in the past, but the exchange risk has reduced significantly as the crypto ecosystem has evolved. In many recent cases of exchange hacks the users lost no funds or had all funds returned to their wallets.
  • LUNO, Binance, Bittrex, and a few other main Exchanges is where I feel comfortable having my cryptos.

2. A Hardware Wallet.

  • A hardware wallet is a special type of bitcoin wallet which stores the user’s private keys in a secure hardware device.
  • Hardware wallets plug into your computer like a USB stick or flash drive. They serve as a “firewall” between your coins and the outside world of hackers, scammers, and thieves.
  • My personal recommendation would be getting the Ledger Nano S and various accessories at: https://www.ledgerwallet.com/r/4d7c
  • The Nano S makes it easy to manage your coins with a small LCD screen and only two buttons!
  • Once you have received your hardware wallet there will be step-by-step instructions or a link provided to make sure you are all set up in just minutes.

What if I lose my hardware wallet?

  • If you lose your hardware wallet someone can try to guess your password, but after three attempts it will reset to factory settings, erasing your information from the hardware.

So how do I get access to my coins back?

  • You simply buy another hardware wallet and restore your information using a secret, 24 word backup that you’re prompted to save the first time you set it up.

3. A Desktop or Web Wallet

  • There are plenty of wallets out there, for desktop and mobile download.
  • Storing your coins in a wallet on your computer is as safe as you make it. If you lose or forget your password you can lock your coins away forever, or if your computer is hacked your coins can become vulnerable to theft.
  • For a full list of recognized wallets in this category, Click here.
  • If you are leaning towards this direction, as a beginner, I would recommend Exodus or Jaxx . This is a multi-currency wallet that can be downloaded on your computer or Mobile phone. Moving them off of exchanges and into Jaxx where you have true ownership of your private keys. They simplify owning Bitcoin, Ethereum, Litecoin, Dash, and dozens of other digital assets. It also has free customer support if you encounter any issues while using it.
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