The first and most important thing that the owner of Bitcoin or other cryptocurrencies should worry is safety. Therefore, you should not neglect the functions of two-factor authentication, multi-signature, and backup in HD wallet, which most wallets have. The hardware wallet is the most reliable and secure storage of your funds. Also, use tumblers like Bestmixer during transactions.
How to store your cryptocurrency in the long term
A cold wallet is considered the safest because, without Internet access, hackers will not be able to access your cryptocurrency. For clarity, a hot wallet can be compared with a credit card, where funds are kept for current expenses, and cold – with a deposit in a bank, where money is stored for long-term purposes for accumulation and security.
If necessary, you can “pull out” small amounts from the deposit (cold wallet) and replenish a bank card (hot wallet) for everyday expenses. This principle is the most optimal and safe. As you should know, the system is decentralized, so users take care of themselves. For example, users make transactions through a special bitcoin tumbler to avoid tracking or hacking. Think about all the pros and cons when you will decide about lending the coins.
Despite the many disadvantages of Bitcoin, it remains a very attractive tool for investment. Keeping it “cold”, counting on growth, or trying to earn more on it is everyone’s personal choice, but you should take into account all the risks in order not to lose what you have in the wallet. Keeping a cryptocurrency for the long term is the easiest way to make money, especially if you don’t have time on it.