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All you need to know about storing funds in digital wallets

A bitcoin wallet is a software that only exists digitally that enables users to store their bitcoins and other digital currencies. Bitcoins cannot be stored like regular cash in banks, and therefore some cloud storage space was required to store bitcoin. Thus, the inventor of bitcoin, Satoshi Nakamoto, developed bitcoin wallets. Users can store, transfer and check their updated balance through bitcoin wallets. These wallets are reliable, convenient, and secure. But because these wallets exist digitally, it is vital to secure them using suitable security measures. Also, start investing in bitcoins by visiting https://thecryptogenius.software

If you are a newbie that has just entered the bitcoin world, here, you can learn the process of adding funds to your digital wallet, learn what Bitcoin ATMs are and how they work, security measures to secure your wallet and some types of bitcoin wallets. So let’s get started.

Steps to add funds to your digital wallet

At first, the user needs to decide on the amount of bitcoin that they want to purchase. Find out a reliable crypto exchange to buy bitcoins. Follow all the norms of AML and get your KYC completed with the exchange. Once everything is done, your account is set up. Choose the cryptocurrency that you want to purchase and enter the number of fiat currencies used to buy crypto coins. You can directly pay through bank transfer or use debit or credit cards. Once you purchase bitcoins, you are required to enter the number of bitcoins that you want to make a deposit of by opening your digital wallet and entering your bitcoin wallet address.

By adding your wallet address, the funds will directly get transferred to your digital wallet. You can check your updated balance from your bitcoin wallet and can make transfers once the amount is transferred to your bitcoin wallet.

What are Bitcoin ATMs, and how do they work?

Like ATMs, special ATMs have been developed for Bitcoin that are referred to as BTMs (Bitcoin Teller Machines). Unlike regular ATMs, BTMs allow crypto enthusiasts to buy bitcoins from these machines using fiat currencies. Some BTMs even enable bitcoin holders to sell their crypto coins and get fiat money in exchange for it. There are only a few places where BTMs are developed. Users can also choose to buy bitcoins from Bitcoin ATMs despite crypto exchanges, as these are highly convenient. You can search on the search engine about the Bitcoin ATM location that is located near or in your area.

How to secure crypto wallets?

It is crucial to use the proper safety measures to secure your crypto wallets and crypto coins. Let’s read out some of the safety measures that include:

  • Store only a limited amount of bitcoins in your crypto wallet.
  • Make sure to create a backup of your wallet as it will protect your coins against human mistakes and failures of computers or mobile devices.
  • Ensure to encrypt the backup of the wallet that is exposed to the bitcoin network.
  • Always use a unique, strong, and random password that contains numbers, letters, and special symbols. Your password must be at least 16 characters lengthy.
  • Never forget your password, as it means you will lose all your savings.

Types of Crypto Wallets

  • Hardware wallets

Hardware wallets are portable hardware devices, like USB drives. These wallets are considered the most secure wallets to store a large number of bitcoins. The best examples of hardware wallets are KeepKey, Trezor, The Ledger, and more. Hardware wallets are categorized under cold wallets.

  • Hot wallets

Hot wallets are wallets that offer high utility but are considered least secure because they only work with an internet connection. The private keys are stored on the device where the hot wallet is used.

  • Cold wallets

Cold wallets are wallets that use keys that are created and stored on a device without an internet connection. These are highly secure wallets but are only best to store a limited amount of bitcoins or other cryptocurrencies.

  • Software wallets

Software wallets are categorized under hot wallets. The software wallet isn’t required to be downloaded or installed and can be accessed directly through a web browser.