Sirwin
Sirwin

Best place to store your Bitcoin

By Bala | Bala | 20 Feb 2024


Since the transaction cost is getting very high, many people might wonder what would be the best place to store your Bitcoin. This question has only one answer that is - a Bitcoin wallet. Storing Bitcoin on exchanges is not a good practice unless the quantity is very low or you are ready to lose the funds. There is a huge risk in holding crypto on exchanges, but if there is a purpose for holding it on exchanges, it should be fine. Because it is only for temporary reasons, it is fine.

Bitcoin wallet

This is the best place to store your Bitcoin. The only problem we have with a Bitcoin wallet is that we will not be able to move the funds from one wallet to another wallet more frequently. If we have to do that, we have to pay transaction fees and the transaction can also take a considerable amount of time to get cleared. This has given another challenge for the trader. It is not easy to move micro amounts from one wallet to another wallet, the transaction fees can sometimes be more than the value of the transfer. It may not be wise to move funds from wallet to wallet.

Source

There are also cold storage options available that become a convenient option. People who wish to not touch their Bitcoin and hold them for a very long time might use this option. They keep accumulating Bitcoin in that wallet wanting to hold them for several years. Some people even have the plan to hold them for decades. For these people, it is just an investment and people don't care about the transaction fees or transaction speed. These people also hold a large quantity and the best place to store their Bitcoin is a private wallet.

Exchanges

Transaction fees and transaction speed are some of the reasons why people prefer to have their coins on exchanges instead of wallets. This is the next and the most convenient option to store our Bitcoin. The biggest problem here is that we might sometimes lose our funds if the exchange is hacked or if the exchange is not maintained properly. Some people are okay to take this risk because it is more comfortable to do the trading on exchanges than doing it from wallet to wallet. There are some advantages to having Bitcoin on exchanges than wallets.

Exchange wallets might look like our wallets but ultimately we are using someone else's wallets to hold the funds and transact those funds. This is why it is not safe and we cannot stick to them for so long.

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KYC free option

Some people prefer storing their Bitcoin in wallets instead of exchanges to avoid KYC. Most exchanges have now started asking for a KYC from the users. Having crypto in wallets is private and secure and nobody will know about it. If people create a wallet and move the funds from one exchange to another and from there to a private wallet, nobody can find out who is holding the funds. Having a KYC-free option like this is attractive for many people and there should already be many people who are doing this already.


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Bala
Bala

Developer | Writer | Blogger | Gamer | Blockchain Enthusiast


Bala
Bala

This is my general blog. I share different articles I write every single day.

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