Are you wondering about the Bitcoin accumulation process, and where can you keep the money you make? After a period of investment and your budget, are you sure your money will be carefully secured for you to use when needed?
The fact is, bitcoins are not “stored” anywhere. It is merely a digital currency, so it is not held in any bank. You will find bitcoins through bitcoin wallet addresses, and to do that, you need a string of digital tokens. Therefore, the security of where bitcoins are stored will depend on the security of the token used.
Each bitcoin address will consist of two keys: a public key and a private key. Bitcoin addresses come from public keys, and you will share public codes for transactions. Think of it like giving someone your email: they can email you, but can’t go to your inbox to read your mail. Likewise, no one can use your wallet and take money from it if they only know the public code. They can only send you bitcoins, so it’s free to share the code publicly.
Personal codes allow users to take bitcoins from their wallets or send them to others. This is why you must keep your personal codes secret. Anyone who knows the personal code will be considered the owner of the money at that address.
There are many different methods for users to protect their personal codes. You can encrypt your bitcoin wallet with your personal password, but in general, this is the most basic layer of security that hackers and viruses can get into. Or you can go completely offline. This way, your personal codes are stored in a data source not connected to the Internet, and bypassed by hackers.
Another way to secure bitcoins is by using multisignature addresses. A wallet address will be associated with multiple parties, each holding part of the code or part of the address to access the code. When one person wants to use bitcoinm, the other parties are required to simultaneously confirm the transaction. The number of signatures can be fully adjusted so that transactions are verified simultaneously by many independent personal devices.
In general, each security method has its own strengths and weaknesses that you need to consider. But the important thing is, make sure your money is secure where you need it, but still out of the way.