When you decide to become an investor in bitcoin, one of the first steps is to figure out how to store your digital assets.\u00a0This quick guide to how to store bitcoins includes tips on setting up Trezor, Ledger Nano S, and a 100% offline paper wallet. Cryptocurrencies offer the possibility to control and store one\u2019s own money. However, this freedom comes with a responsibility. It is the owner\u2019s duty to ensure that the funds are safe. We describe some safe ways of storing cryptocurrency in this post. But first, let\u2019s take a look at some attributes of cryptocurrencies to better understand why safety is important. How to store bitcoins and other cryptocurrencies Cryptocurrencies are based on two keys: a public key and a private key that\u2019s linked to the public key. The public key is used to receive funds, and the private key is needed to move the funds. A private key is like a password for the funds in your address. If someone gains access to your private key, that person also has access to the funds. This is why one must keep their private keys safe. Cryptocurrency transactions are irreversible as well as difficult to trace identity-wise. So if someone has gotten access to your coins and decides to steal them, there is almost no chance of you getting them back. This is another reason why one must keep their funds safe. This post will go through 3 solutions for storing bitcoin \/ another cryptocurrency. It's hardware wallets, paper wallets, or keep the funds in an exchange platform. In addition, there is a step-by-step guide to creating 100% offline paper wallets at the end. How to store bitcoins in hardware wallets Trezor and Ledger Nano S are the most popular hardware wallets for storing your funds and private keys locally. They are small devices that you can use by plugging into a USB port of a computer. Within the cryptocurrency community, these devices enjoy a reputation of being a very safe and trustworthy option. They are great for storing large amounts of funds and making transactions. Both Trezor and Ledger Nano S can be restored with a backup phrase. This guarantees safety for your funds if the device is lost or broken. These pieces of technology are very safe, as your private key never leaves the device. Trezor and Ledger Nano S are therefore safe to use (although we do not recommend it) even on a malware-infected computer. The only way to \u201chack\u201d these devices would be with the illegitimate use of the backup phrase. The first thing upon receiving the device is to reset it before the first use just to make sure the device is 100% safe. IT IS NOT RECOMMENDED TO BUY THESE DEVICES SECOND-HAND AS IT CAN COMPROMISE YOUR FUNDS\u2019 SECURITY. Pros: -Secure while being easy to set up -Can be restored with a backup phrase -Safety level is not reduced by making transactions (compared to paper wallets, which should be discarded after one transaction for maximum safety) Cons: -Price Ledger Nano S is one of the most popular hardware wallets. How to store bitcoins in a paper wallet A paper wallet is among the safest possible options for storing bitcoin, as long as it is generated in the correct way. A paper wallet is a simple wallet: it is a piece of paper that contains the public bitcoin address and the private key to that address. Paper wallets are safe because they are not connected to the internet, and therefore outside the reach of potential hackers. Although a paper wallet is safe from hackers, it is susceptible to other threats, such as theft or physical degradation. The owner of a paper wallet must store the paper in a safe place, and protect it from physical wear. It might be a good idea to laminate the wallet to give it additional protection from water, ripping, and so on. You should have at least 2 copies of your paper wallet and store them in different safe locations so that you have some backup in the case of an unfortunate incident. Paper wallets should be discarded after a single use because when a transaction is made, the private key is exposed to an online service. This is why paper wallets are not the most convenient for frequent transactions. Paper wallets can be BIP-38 encrypted with a password for additional safety. If the password-protected paper wallet is compromised, the dishonest party cannot access the funds without knowing the password. Note that you must not lose or forget the password either, or the funds are locked beyond your reach. Pros: -Price (almost nothing) -Very safe because offline -Very good for storing a large amount of BTC for a long time Cons: -The setup process might seem challenging -Not the most agile for quick\/frequent transactions -You must take very good care of the physical paper wallet -For optimal safety, can be used only once Storing cryptocurrencies in an exchange By storing cryptocurrency in an exchange service you forfeit the control of your safety to the hands of the exchange\u2019s security system. This can be a good or a bad thing depending on how you look at it. Exchanges can be juicy targets to malevolent attacks, for example, the bitcoin exchange Mt. Gox had a huge amount of BTC stolen via a security breach. On the other hand, exchanges are likely to hire the best security experts to ensure safety for their own business and customers, since without security they would not have any customers, nor would there be any business. It is convenient to have funds ready at an exchange in case a quick desire to make a trade arises. But having your funds at someone else\u2019s management poses a risk, no matter how slight. It is not recommended to keep large sums in an exchange for a long period of time. Pros: -Funds are always ready to be traded -There is a high incentive for exchanges to maximize security Cons: -You don\u2019t control the private keys of your funds -There is a high incentive for hackers to attempt breaching the security How to store bitcoins on Coinmotion Most of Coinmotion\u2019s funds are in multi-signature cold storage, outside of online hackers' reach. When you create an account, you automatically get a bitcoin wallet address, while your funds are in a cold wallet. For customers who desire additional security, we offer the Vault service. In the Vault, the funds of the customer are behind a time lock. When someone is trying to move the funds, they will not be available until a certain time period has passed. The length of this period is up to the customer to decide. Coinmotion's security is one the best in the world.\u00a0 How to store bitcoins & set up Trezor \tPlug Trezor into your computer and open Google Chrome \tThe device will tell you to visit trezor.io\/start -> go there \tInstall Trezor Chrome extension on Google Chrome \tInstall firmware from the site and confirm that the firmware fingerprint is the same in the site and the device \tUnplug and reconnect the device once the update is done \tName your Trezor \tChoose your PIN. Note that the website shows a blank 3x3 grid, but the Trezor screen shows you where each number on the grid is. Notice that when re-entering the PIN, the order of the numbers in Trezor has changed. Enter the same PIN nevertheless. \tWrite down the recovery phrase. Make 2 copies. Store them safely. In the Trezor app, you can see how much BTC you have, as well as send and receive BTC. Trezor also has support for many other coins as default. It\u2019s useful to notice that you can receive BTC offline. Only \u201csend\u201d-transactions require connecting to the computer and using the app. When sending BTC, you have to confirm the transaction with your device. This confirmation will sign the transaction on the device and your private key will not leave your device. You can save a certain address as a recipient for easy future transactions to the same address. Trezor can be plugged to any computer that has a USB input. Setting up Ledger Nano S \tPlug Ledger Nano S into your computer \tChoose a PIN \tWrite down the recovery phrase. Make 2 copies. Store them safely. \tOpen Google Chrome and go to ledgerwallet.com\/apps and download \u201cLedger Wallet Bitcoin & Altcoins\u201d for your operating system (Mac, Windows, or Linux) \tLaunch the app and you are ready to go! In the Ledger Wallet app, you can see how much BTC you have, as well as send and receive BTC. You can add other coins to your wallet by downloading \u201cLedger Manager\u201d from ledgerwallet.com\/apps. Now open the app, connect the device, and download support for any coin you want. It\u2019s useful to notice that you can receive BTC offline. Only \u201csend\u201d-transactions require connecting to the computer and using the app. When sending BTC, you have to confirm the transaction with your device. This confirmation will sign the transaction on the device and your private key will not leave your device. How to store bitcoins & set up a paper wallet 100% offline Paper wallets should be generated offline for maximum security. For this process you need the following items: \tA computer that is rarely online and free from malware \tA printer that is not connected to the internet Now that you have the items ready, let\u2019s begin a step-by-step process of creation. \tWith your computer that is mostly offline, go to https:\/\/bitaddress.org\/ \tSave the https:\/\/bitaddress.org\/ site to your computer \tUnplug from the internet \tOpen the file and generate an address \tEnsure that your printer is offline and print the address \tDelete all the files you downloaded for the process The whole process has now taken place offline, so the new precious private key has the best possible safety. A paper wallet includes public and private keys so keep it safe and private. Example of a paper wallet created at bitaddress.org.