People all around the world are adding bitcoin to their investment portfolios. This trend can continue as more people learn about the advantages that cryptocurrency has over comparable asset classes like stocks, bonds, precious metals, and fiat currencies. As an investment, bitcoin is attractive because it is decentralized. It is not controlled by any person, company, or institution, which is exclusive to bitcoin and virtually eliminates its organizational attack surface.
As a form of money, bitcoin is advantageous because it is not affected by the whimsical, and often irresponsible financial decisions made by governments and central banks. By separating money from the state, bitcoin provides you with value that can not be censored, seized, or diluted by a central bank with an obsession for printing money.
How to Choose a Bitcoin Wallet?
Bitcoin wallets serve as a means to hold your bitcoin securely. There are different wallets available for Bitcoin users. There are software wallets, online wallets, mobile wallets, electronic wallets, hardware wallets, and paper wallets.
Hardware wallets are the safest option for Bitcoin storage. Hardware wallets primarily function as offline wallets that cannot be accessed via internet connection, unless they are plugged in. Such wallets are secure because they minimize the ability of hackers to access your funds. Securely storing your wallet keys is important to maintaining a hard wallet.
Aside from hardware wallets, other viable options for bitcoin wallets are mobile wallets and software wallets. Let’s explore some of the best mobile and software wallets available.
- Exodus – this is an offline software wallet that caters to different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Free for all users, Exodus features a built-in crypto trading that utilizes special tools to compile and present your crypto portfolio.
- Mycelium – an open-source mobile wallet platform that exclusively supports Bitcoin.
If you are gutsy enough, you can use online wallets as a start and see how secure and convenient it is for you. But as they say, “better safe than sorry,” so avoid preferring online wallets as they are highly susceptible to hacking. This is because a third party sometimes holds the wallet key of an online wallet.
What are the Payment Methods to buy Bitcoin?
There are several ways that you can buy bitcoin. The traditional method is through bank transfer. In this method, a buyer sends money to an exchange where they can then purchase bitcoin.
Another way to pay for your Bitcoin is via credit or debit cards. This method is convenient, but may involve higher fees since a merchant processor is involved in the transaction.
Paypal is another option to pay for Bitcoin. This is also an easy means of paying. But just like credit card payment, Paypal is accepted by only a few sellers and exchanges, and may involve higher fees.
Other means include private money transfers such as Western Union, Paysafecard, and even p2p marketplaces.
Peer-to-peer swaps is another way of acquiring Bitcoin. This method is risky however, as there is little way to ensure that the other party will send the funds that are required to complete the transaction. We recommend avoiding peer to peer swaps whenever possible.