Once you have started your journey into Cryptocurrency and Bitcoin investing you will eventually realize the importance of safe keeping and storage of your digital assets. Storage and safety can be difficult to grasp especially since this technology is coming out of left field for most of us. Most tokens are created on the Bitcoin Blockchain or the Ethereum Platform or a technology that is very similar to one of these. Understand that your digital asset always stays on the Blockchain, or wherever it was created. When you purchase your digital currency you basically receive an address where that digital asset lives so you can access it, you can use this address to receive more of that particular currency and share the public address for payments or donations or any transactions. When storing your cryptocurrency you will create private keys to protect others from being able to steal your digital assets. The amount of your assets along with your long term and short term goals will determine what you will do with your cryptocurrency and how you can better protect them.
Apps, Platforms and Exchanges
If you have a short term goal of trading or sending and receiving your Cryptocurrency you want them to be easily accessible and your options would be to keep them in your Coinbase/Gdax Account, or store them on an exchange such as Bittrex, Kraken, Coinigy or Poloniex if you plan on making frequent trades. If you want to send your coins to the exchange first you must determine which coin or tokens does each exchange support. The major coins such as Bitcoin, Ethereum, or Litecoin are pretty much on every exchange in the world with the exception for example of Etherdelta.com which only supports Ethereum blockchain or ERC20 Tokens. When sending to an exchange always remember you can only send bitcoin from a Bitcoin address to a Bitcoin Wallet, your exchange will generate this address for you and remind you to be sure you are sending Bitcoin to a Bitcoin Wallet, Litecoin to a Litecoin Wallet, you get the picture. There are a couple ways to send your coins, you can copy and paste the address being very careful to check the first 5 digits and last digits so you know you have the correct address typed in the field.
Sending and Receiving Coins and Tokens
The other easy way to send tokens is to generate a QR Code that you can scan for example with your smartphone when you are sending from your Coinbase Ap to and exchange. This takes a lot of the error out of copy and pasting, the addresses are usually way to long to try and manually enter and I would not recommend it. When using your Coins and Tokens frequently, storing using them on a trading platform is very convenient. The Flexibility of being able to react to price movements and setting limit orders are a few benefits. Leaving your coins on the exchange also saves you time, energy and gas because each time you send coins or tokens you pay a gas charge for the network to move the transaction thru. The fee for Bitcoin can be expensive and eat up your coin amount if you repeatedly move your Bitcoin around, Bitcoin is also very slow and takes numerous approvals from the network, Litecoin is much cheaper and quicker, and most exchanges allow you to set the Gas higher or lower depending on which speed you want it sent.
So we have the convenience of having our coins on an Ap or exchange but the downside is the security! most people who have been in the Crypto game for awhile agree that you really don’t want to trust any third party with your coins for very long, there have been hacks, although not frequent the Mt. Got hack is the most famous and was devastating to Bitcoin holders and also devastating to the short term price of Bitcoin. Remember that Aps, Trading Plaforms and Exchanges are short term storage solutions and in no way guarantee safe keeping of your coins so use your discretion and preferably only store coins that you will be actively trading and use Two-Factor Authentication to assure your approval when withdrawing coins from the exchange. So in recap, this is the easiest way to store your coins but probably the least safe, use a strong password, use 2-factor authentication and never login on a public computer, try and use one dedicated computer and keep all your passwords, private keys…etc on a removable hard drive and not on your desktop or in a folder on your computer.
A nice way to manage and store your coins and gives you total control and easy to use.
CONTROL YOUR KEYS
Exodus encrypts private keys and transaction data locally for your eyes only. Your data remains private – no account setup required.
BEAUTIFUL LIVE CHARTS
Track the value of your blockchain asset portfolio, in real time, as market conditions change.
PERSONALIZED FOR YOU
Personalize your wallet with color scheme and themes!
You can go to the Jaxx website an download the Jaxx Wallet for free and you can use Jaxx with your smartphone and your computer. Below is a brief description. It handles many popular coins and tokens but not all as there are new ones popping up each day.
Jaxx Blockchain Interface
Jaxx is a cryptocurrency wallet available for download on 8 platforms. The Jaxx wallet is the top choice of Bitcoin users and cryptocurrency traders worldwide for its security, privacy, and simple yet powerful set of features.
Once you’ve bought Bitcoin, Ethereum or other digital assets on an exchange like Coinbase, Kraken or QuadrigaCX it’s time to take control of your coins from them. It’s time to get a Jaxx wallet to handle your cryptocurrencies.
Get control your Bitcoin, Ethereum and other cryptocurrencies by moving them off of exchanges and into Jaxx where you have true ownership of your private keys. We simplify owning Bitcoin, Ethereum, Litecoin, Dash, and dozens of other digital assets. Jaxx is beautiful, frictionless and intuitive. It also has free customer support if you encounter any issues while using it.
An inexpensive way to keep track of your coins or tokens is by creating a paper wallet. Many websites such as bitcoinpaperwallet.com or bit address.org can help you setup your online paper wallet fairly easily. Beware as with any website that you are sure you correctly type in the website name and bookmark it once you are sure it’s correct as Phishing scams involving fake sites that look identical to real sites are popping up all over and have cost beginners a lot of money from lost coins.
Paper wallets were the standard method of storage before hardware wallets became readily available. Paper wallets generate private keys that can be printed out on a piece of paper. If generated and printed with a secure, offline computer, paper wallets are a secure form of storage. This is a low cost way to store your Bitcoins and have access to them but you are putting your information at risk by depending on a third party.
The main problem with paper wallets is it can be inconvenient to create and print a new wallet each time you send funds to storage address. However, it’s possible to bulk print paper wallets to save time and eliminate address reuse. When gifting tokens you can generate an individual address and transfer the ownership to someone buy giving the paper address.
I’m not a big fan of paper wallets, I feel if you are serious about Cryptos you need to use a hardware wallet which puts added layers of security between the coins and makes it virtually impossible to get stolen or scammed. Security is very important and hard to understand at first but learning the best methods is so important.
Here are a few helpful tutorials for Paper Wallets
Nano Ledger S