Buying and selling Bitcoin is different to buying and sharing fiat currency or other assets for a multitude of reasons. This being the case, the way in which the Bitcoin you have accrued and are prepared to sell has to reside somewhere. While it is comprised of a digital make-up, it still needs somewhere to be saved securely – which can be one factor that many don’t consider when they think of blockchain cryptocurrency, perhaps because of the invisible nature of digital coin. A digital wallet is the primary way in which Bitcoin traders secure their crypto coin – but what makes the best Bitcoin wallet?
Choosing the Best Bitcoin Wallet for Security
When it comes to protecting your digital wallet and the crypto assets stored within, many people take a more haphazard approach than they would take to protecting their leather one. However, security should be the number one concern when owning, buying or selling any cryptocurrency. But, many are lax about the protection of their strands of blockchain due to the intangible nature of the assets. Indeed, criminals have grown savvy and are now targeting digital wallets as much as they would physical ones or credit cards. But due to the fairly new nature of the cryptocurrency, there is less information available to the layperson about the nature of cybercrime. That’s why whatever digital wallet you choose, the best Bitcoin wallet will be one that offers additional layers of protection. Most smartphones offer a digital wallet as an app, and should be investigated properly when it comes to the levels of protection and security they offer the contents you have accrued through your trading career.
Choosing the Best Bitcoin Wallet for Privacy
When it comes to ensuring your cryptocurrency – from Bitcoin (BTC) to Ethereum (ETH) and Ripple (XRP) – is safe in your digital wallet, your privacy is another factor to consider. Differing from security, privacy will ensure that the Bitcoin you own is kept private and your transactions keep your identity masked. One of the major benefits of cryptos is the anonymity associated with the transactions. Yet, many digital wallets keep a record of which chains are exchanged by who, essentially keeping a digital footprint of your Bitcoin exchanges. The 2-wallet system set up by Samourai promises to use a system of cooperation between two wallets for an extra layer of privacy protection. This enables the users to establish private transaction channels, which helps prevent personal information being leaked. Many people shirk the need for privacy protection when they consider a digital wallet, but it is critical.
Can You Buy Bitcoin Without a Wallet?
For those who might be put off by the need for added security and privacy for a digital wallet, or who may not trust the intangible nature of the digital wallet, there are other options available. Some brokers allow you to invest in Bitcoin and other crypto coins without actually owning any. A contract for difference (CFD) means that you don’t actually own the underlying asset, but can still buy and sell based on its value, taking advantage of price changes over time. This not only means you need less capital; it also eliminates the need for a wallet. eToro, for example, is a broker that takes advantage of CFDs in order for its users to not have to need a digital wallet. Removing this barrier for entry allows people to get into cryptocurrency trading in a different way.
Blockchain strands are unique, so it’s important that you have a way of keeping private the Bitcoin you have accrued, especially if you are planning on embarking properly on a cryptocurrency trading journey. Similarly, ensuring your Bitcoin is secure and unable to be accessed by others or subject to any cybercrime is also a key issue. Plus, ease of access can ensure you are able to trade Bitcoin and other cryptocurrencies as you wish and not be tied to leaving certain amounts in your digital wallet.