You can’t own, buy or sell Bitcoins without a wallet to store them in. But not all Bitcoin wallets are equally safe, so how can you best protect your funds?
Read on, to understand…
- What a Bitcoin wallet is
- How access and transactions work
- The different kinds of wallets
- What “hot” and “cold” storage is
- How to get a Bitcoin wallet
- How much it costs (hint: it’s free!)
What Is A Bitcoin Wallet?
A Bitcoin wallet is, naturally, a place to store your Bitcoin.
There are many different kinds of wallets, ranging from smartphone apps and web applications to paper notes and titanium blocks. Each wallet offers a different level of protection.
Web and mobile apps that are connected to the Internet are considered “hot” wallets. They’re convenient to use, like real wallets, but come with the risk of attacks by cybercriminals.
Paper, hardware, and metal wallets that are offline are referred to as “cold” wallets. They’re much more difficult to access and therefore offer the highest level of protection — like a vault.
What all Bitcoin wallets have in common is that they hold two keys: a public and a private key.
Both keys are required to access your Bitcoin.
See the public key as your bank account number: anyone who has it can send you money. That’s why it’s often referred to as your “wallet address.”
The private key, on the other hand, is like your PIN number: anyone can use it to access your money — which is why you should keep it safe.
How Do You Get a Bitcoin Wallet?
When you sign up with NordikCoin, we give a virtual Bitcoin wallet. You can use this to buy, sell and store Bitcoin on the platform.
However, to increase security of your funds, we advise all customers to create their own Bitcoin cold storage wallet, such as a hardware device or a physical material (ie. paper or metal). This will reduce the chance of hacking, cyber crime and theft of funds. As the old Bitcoin-saying goes: “Not your keys, not your coins”.
Here are some good Bitcoin wallet options:
- Ledger and Trezor are two of the most popular and bestselling hardware wallet brands. You can purchase a wallet for €60-€600 depending on how fancy you want to get.
- Crypto-Keys and CypherWheel are two examples of steel wallets that can resist fire, water, corrosion, and much more. Prices range from €30-€300 depending on the design.
- Bitcoin Paper Wallet Generator and BitAddress can be used to create your very own public and private keys for a homemade paper wallet. The price? Free.
When you have created your Bitcoin wallet, you can move your funds off the exchange.
How Do You Send Bitcoin from the Exchange to Your Wallet?
Now to the exciting part: how to transfer funds from your hot wallet to your cold wallet. First, log on to your NordikCoin account and head over to the Dashboard.
Click the “Send” button at the top of the page. You’ll see your Bitcoin balance and two boxes: one where you type in how much you want to send and another where you paste in the wallet address (public key) to your newly created cold wallet.
You’ll also see the transaction fee, which is for the Bitcoin miners to process and validate the transaction. Here, you have the option to either include it in the total amount or pay it in addition to the amount you want to send.
Make sure you double- and triple-check the wallet address you’re sending to because Bitcoin transactions can’t be reversed. Send Bitcoin to the wrong address and they’re lost.
Once you’re happy, simply click “Send”… and you’re done!
Remember: Safety First
Thankfully, NordikCoin has never been hacked due to our rigorous cyber security policies. But other Bitcoin exchanges have, which is why we always urge the strictest caution. The more Bitcoin we hold on the NordikCoin exchange, the more interesting of a target we’ll be to hackers, fraudsters, and other cybercriminals. We don’t want that for you – or for ourselves.
So to help protect yourself and the exchange, we’d suggest you look into one of the cold storage options we’ve linked to above. We’re not affiliated (so we don’t receive a commission) and as you can see, it’s also possible to make your own cold wallet for free.
Happy (and safe) trading on the exchange!