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Mastering the cryptocurrency vault: the Bintense guide

This article and its contents have been prepared and distributed to persons outside the United Kingdom. The information provided is not intended or intended for distribution to, or use by, any person or entity within the United Kingdom. The financial products and services referred to in this article are not appropriate in the United Kingdom. Cryptocurrencies are classified as restricted mass-market investments in the UK, which means that they are high-risk investments and are not suitable for most retail investors.

For those entering the cryptocurrency market, the most important thing to understand is how to protect your digital assets. Unlike traditional currencies, cryptocurrencies cannot be stored in regular bank accounts; instead, they require special storage solutions called wallets. A wallet should be chosen carefully. In 2021, a bitcoin enthusiast lost access to 7 002 bitcoins, now valued at around €414 million, due to a forgotten wallet password.

To help you navigate the complexities of cryptocurrency storage and avoid such accidents, the online cryptocurrency exchange Bintense explores the various storage options and steps involved in storing your digital assets.

Cryptocurrency storage: cryptocurrencies: an overview

A cryptocurrency wallet is the primary storage tool for cryptocurrencies, where your digital assets, private keys and wallet addresses (public keys) are stored. Choosing the right wallet is crucial to ensure the availability of your cryptocurrencies.

Cryptocurrency storage: cold storage: cold storage

Cold storage involves storing cryptocurrency offline, separate from internet-connected devices. The steps for storing cryptocurrency using cold storage are given below:

  1. Buy a cooling device: choose a portable device with Bluetooth connectivity for added convenience.
  2. Download the appropriate software: Install the necessary software on your computer to facilitate communication with the cold wallet device.
  3. Check your recovery phrase: Make sure you know your recovery (seed) phrase as it is the key to your wallet in case of loss or device failure.
  4. Create a new wallet address: For each cryptocurrency you want to store, create a new one so you can track the asset accurately.
  5. Transfer cryptocurrencies to a cold storage wallet: send your cryptocurrency to a cold storage wallet at the address you specify, taking care to avoid address selection errors.

“Bitcoin and Ethereum are available at Bintense. The cryptocurrencies will be transferred to your wallet address.

Cryptocurrency storage: the hot wallet

Hot wallets are digital wallets that store cryptocurrency online and are easy to use. Here’s how to store cryptocurrency using a hot wallet:

  1. Set up your preferred wallet: select your hot wallet provider and follow the account set-up process.
  2. Complete the KYC check: please provide the required identity documents in accordance with the legal guidelines.
  3. Check wallet readiness: make sure your hot wallet is configured to support the cryptocurrencies you want and add them manually if necessary.
  4. Deposit your cryptocurrency: share your wallet address with your partners for seamless cryptocurrency transactions.

Cryptocurrency storage: paper wallet

Paper wallets are an offline cryptocurrency storage solution. Here’s how to create and use a paper wallet:

  1. Computing environment: to ensure the integrity of your paper wallet, use a clean, malware-free computer.
  2. Access to the paper wallet generator: Visit the trusted paper wallet generator website and generate your wallet details, including private and public keys.
  3. Generate wallet address: Customize the number of addresses you want to generate and get your wallet credentials with one click.
  4. Print out a paper wallet: Print out your wallet and hide the private key in the document to prevent unauthorised access.
  5. Transfer cryptocurrencies to a paper wallet: initiate cryptocurrency transfers to a paper wallet address and save the printed document.

At Bintense, we prioritise your convenience. When you buy or sell cryptocurrencies on our platform, your funds are immediately transferred to the specified accounts, thus reducing the risks associated with centralised custody. Learn more about how to exchange BTC or ETH for fiat money.

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By using the Bintense services, you acknowledge and agree that purchasing or selling cryptocurrency involves significant risk and that you are aware of the risks associated with digital currency transactions. Please read our risk disclosure for more information.

Please note that the transaction is irreversible once your order has been completed, and you cannot change or cancel it. You must enter your personal details and your wallet address accurately.