Is Bitcoin A Secure Medium To Invest In?��

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A large impact comes from social media. Investors are highly interested in Bitcoin as it is the most appreciated and Bitcoin Safety of all time. In fact, those who did not know anything about cryptocurrency are now thinking about investing or trading in bitcoin. Besides, the hype mainly started with Elon Musk. His tweets turned the heads of everyone around the world. Also, social media was flooded with the news of it.

Since then, people have been increasingly interested in the first cryptocurrency. These days, bitcoin is the greatest of all the hot topics. People are exploring ways to start investing in cryptocurrency. Regarding investment, Bitcoin Erais a great platform thatinvestors have liked in recent times.

There is still much apprehension surrounding cryptocurrency usage. Many believe that it is used for illicit activities. In fact, China recently bannedcryptocurrencies, saying that it has bad environmental effects and has been used in dark activities. However, it is not entirely true because a currency cannot be good or bad. Just like fiat money, there are both good and bad activities using it. The same happens with bitcoin. There are dishonest people in this world who use this for dishonest purposes. But that does not make bitcoin bad. 

How to have bitcoin?

Well, there are three options to have bitcoin. You can buy, trade or mine bitcoins. Mining needs huge computation and mathematical solutionsto complex puzzles. On the other hand, if you want to buy or trade bitcoin,you would need an exchange and bitcoin wallets. 

What are bitcoin wallets?

Bitcoin wallets are the digital storage that helps save the private key required while making transactions using the crypto. 

It can be referred to as the wallet you carry all the time to store your money. Bitcoin wallet is just like that but in virtual form. The following section takes you through the details of the types of Bitcoin wallet.

Hardware wallet

Hardware wallets are the ones that do not require an internet connection to store or transact in bitcoins. These are usually hard disks used to store all the information and hence are considered one of the most secured forms. In fact, it is used more for storage purposes rather than transactional purposes. The best part is that when you use the hardware or cold wallet, you remain in full power because your hardware wallet has no connection to the web, and you are the only one who knows its pin. Keep the PIN safe. Otherwise, they may transfer all your bitcoins from your account to theirs. 

Software wallet

These are powered by the internet and are also called a hot wallets. It needs an internet connection to function. When you need a cold wallet for secured storage, you would require hot wallets to transact. No matter how safe you can keep your cryptos in a cold wallet, you would still need the hot wallet and some bitcoin in it to do the trading or buying and selling. 

Here are the types of the wallet-m

Desktop wallet

Using the desktop wallet simply means that you would be installing the app into your desktop and using it. 

Mobile wallet

It is the same as a desktop wallet but just on mobile. Once installed, you can start using this app similar to other mobile applications. However, you would need separate versions for mobile and desktop.

Web wallet

Web wallets are what you get in the exchange. In the case of web wallets, there always is a third party involved. Therefore, keeping your asset in an exchange wallet is not always safe. Transfer what you have to other types of wallets to have secured storage. 

Concluding thoughts

Bitcoin is secure, but there are scammers worldwide who are trying to steal it from others. Therefore, we suggest using everything effectively. For example, always keep your fund in a cold wallet; however, a little bit of bitcoin being in the hot wallet will make your transactions hassle-free. 

By now you know the importance and significance of Bitcoin wallet. You must always choose the best option, and keep the crypto keys safe. Remember, vulnerability is a part of trading, and so you must plan the investment strategy well. 

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