Bitcoin for the Befuddled

3

STORING YOUR BITCOINS SAFELY, SECURELY, AND CONVENIENTLY

Unfortunately, nothing can be protected against loss with 100 percent certainty, but when done correctly, bitcoins can be stored extremely safely and securely, perhaps more so than any other financial asset. Stored incorrectly, however, bitcoins are vulnerable to loss due to technical failures (e.g., a computer or hard drive failure) or everyday disasters, and they can be an easy target for thieves as well. So before you purchase a significant amount of bitcoins, you need to learn how to—and how not to—store them.

In this chapter, we’ll explain various methods of storing bitcoins and comment on their appropriateness for different use cases. Some storage methods are more secure than others ...