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How to Store Your Bitcoin? 


Similar to a bank account number, your wallet comes with a wallet address that appears in an account search and is shared with others so that you can conduct transactions. This address, which is a shorter, more usable version of your public key, consists of 26 and 35 random alphanumeric characters, some like 1A1zP1eP5QGefi2DMPTfTL5SLmvDDivfNa. Keep in mind that every letter and number of that address is important. Before sending any bitcoins to your wallet, double check the entire address, character by character.


There are one or more private keys tied to your wallet's address, as the name suggests should not be shared with anyone. The key is used to verify the public key above and sign the transaction. Some wallets form a safe seed phrase, a set of words that will allow you to unlock your wallet if you lose your keys. Print this phrase and keep it in a safe place.


The unfortunate truth is that your bitcoin wallet is similar to your physical wallet. If you lose a private key in your wallet, you will most likely lose currency in it forever.


Your wallet creates a master file where your public and private keys are stored. This file should be backed up in case the original file is lost or damaged. Otherwise, you risk losing access to your fund.


You can store your personal keys on your computer, mobile device, physical storage gadget, or even on a piece of paper. It is important that you protect your personal keys by making backups both online and offline.


Remember: Your wallet does not live on a single device. The wallet itself rests on the bitcoin blockchain, such that your banking app effectively "corrects" the cash in your checking account.


While wallet apps work well and are relatively secure, the safest option is a hardware wallet that you keep offline, in a safe place. The most popular hardware wallets use special layers of security to ensure that your keys are not stolen and that your bitcoin is safe. But, once again, if you lose the hardware wallet then your bitcoins go away unless you have kept reliable backups of the keys.


The least-secure option is an online wallet, ie storing your bitcoins in an exchange. This is because the keys are held by third parties. For many, the online exchange wallet is the easiest to set-up and use, presenting an all-too-familiar option: convenience vs. security.


Many serious bitcoin investors use a hybrid approach: they hold a core, long-term amount of offline bitcoins in a so-called "cold storage", while balancing spending in a mobile account.


There are different types of bitcoin wallets available here, depending on your bitcoin strategy and desire to get technical. Bitcoin.org has an assistant that will show you which wallet to choose.


Cloud wallets exist online and keys are typically stored in remote servers run by a third party. A cloud-based wallet has a more user-friendly interface, but you'll rely on a third party with your private key, which makes it susceptible to stealing your money. Some examples of this wallet type are Coinbase, Blockchain, and Lumi Wallet. Most cryptocurrencies have their own native wallets, including bitcoin. Some provide additional security features such as offline storage (Coinbase and XAPO).


With your private keys stored on the server, you have to rely on the host's security measures and also on the host that disappears with your money or get down and deprive you of access.


The software wallet can be installed directly on your computer, giving you personal control of your keys. Most have a relatively easy configuration and are independent. The disadvantage is that you are in charge of acquiring your key. Software wallets also require more security precautions. If your computer is hacked or stolen, the thief can obtain a copy of your wallet and your bitcoins.


While you can download the basic software bitcoin core protocol (which keeps a repository of all transactions since 2009 and takes up a lot of space), most of the wallets in use today are "lite" wallets, or SPVs (simplified). Payment Verification) are wallets that do not download the entire laser but sync it.


Electrum is a well-known SPV desktop bitcoin wallet that also offers "cold storage" (a completely offline option for extra security). Exodus can track multiple assets with a sophisticated user interface. Some (such as Jaxx Liberty) can hold a wide range of digital assets, and some (such as Copay) offer the possibility of shared accounts.


Before downloading any app, please confirm that you are downloading a valid copy of the original wallet. Some shady programmers clone various crypto websites and offer free downloads, leading to the possibility of a hack.


Mobile wallets are available as an app for your smartphone, especially useful if you want to pay for something in bitcoin in a shop or if you want to buy, sell or send it on the move. All mentioned online and most of the desktops mentioned above have mobile versions, while others - such as Abra, Edge and Bread - were made keeping in mind mobiles. Remember, many online wallets will store your keys on the phone itself, which increases the chances of losing your bitcoin if you lose your phone. Always keep a backup of your key on a different device and take a print out of your seed phrase.


Hardware wallets are small devices that connect to the web only to implement bitcoin transactions. They are more secure because they are generally offline and therefore not hackable. They can be stolen or lost, however, with bitcoins that belong to stored private keys, so it is recommended that you backup your key. Some large investors keep their hardware wallets in safe places such as bank vaults. Trezor, Kipki and Ledger are notable examples.


Paper purses are probably the simplest of all purses. Paper wallets are pieces of paper that hold a private and public key to a bitcoin address. Ideal for long-term storage of bitcoins (away from fire and water, of course) or to deliver bitcoins as a gift, these purses are more secure that are not connected to a network. However, they are easy to lose.


With services like WalletGenerator, you can easily create a new address and print a wallet on your printer. When your paper wallet is ready to be made you simply send some bitcoins to that address and then store it securely. Whichever option you go for, be sure to backup everything and only tell your nearest and dearest where your backups are stored.


For more information on how to buy bitcoin, see here. And for some examples of what you can spend on it, see here.


(Note: Specific businesses mentioned here are not the only options available, and should not be taken as an official recommendation. Further, companies can go out of business and replace with more nefarious owners. Always protect your keys Do.)


How to Sell Bitcoin?


The exceptions are bitcoin ATMs - some allow you to exchange bitcoins for cash, but not all. Coinatmradar will guide you to the Bitcoin ATMs in your area.


All exchanges allow you to sell as well as buy. Which type of exchange you choose to sell your bitcoins to will depend on what type of holder you are: small investor, institutional holder or trader?


Some platforms, such as GDAX and Gemini, have more purpose in large orders from institutional investors and traders.


Retail customers can sell bitcoins in exchanges like Coinbase, Kraken, Bitstamp, Polonics, and more. Each exchange has a different interface, and some offer related services such as secure storage. Some require verified identification for all trades, while others are more relaxed when they are involved in small amounts.


(Of course, you forget to declare any profit made on the sale to your respective tax authority!)


If you want, you can exchange your bitcoins for other cryptocurrencies instead of cash. Some exchanges such as ShapeShift focus on this service, allowing you to swap between Bitcoin and Ether, Litcoin, XRP, Dash and many more.


Another option is direct selling. You can register as a vendor on platforms such as LocalBitcoins, BitQuick, Bittylicious and BitBargain, and interested parties will contact you if they like your price. The transaction is usually done through deposits or wires in your bank account, after which you are expected to transfer the agreed amount of bitcoins to the specified address.


Or, you can sell directly to friends and family after setting up a bitcoin wallet. Just send bitcoins, collect cash or mobile payments, and celebrate together. (Note: It is generally not good to exchange bitcoins in cash in person to meet strangers. Be safe.)


(Note: Specific businesses mentioned here are not the only available options, and should not be taken as a recommendation.)
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