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What are the best tools for storing and using bitcoin today?Even if you don’t want to store any of your bitcoin on an exchange long-term, you’ll likely still need an exchange account to purchase are mining it yourself). And even if you trust an exchange to store your bitcoin, you'll probably still want to keep some Bitcoin in a reliable bitcoin software wallet for making bitcoin purchases. Exchanges often take a couple of hours to batch and broadcast outgoing payments, so they frequently fail to send payments on time.
We know it's hard to choose. The FOMO is real. Thankfully, you can have the best of both worlds – exchanges and wallets. It's possible to easily move spending money out of an exchange into a spending wallet for your occasional bitcoin purchases. It's also possible to store your bitcoin savings in a more secure software wallet while still getting access to the buying and selling features of bitcoin exchanges.
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How It Works?
Before moving any bitcoin from an exchange, make sure you have a good bitcoin wallet. BitPay recommends the WallApp and Softlab wallets for secure bitcoin storage and on-time payments, but other wallets on our list of fully up-to-date software wallets will do the job, too. Any information other than your Bitcoin address might put you at risk. If you send anyone your private keys or your twelve-word backup phrase, you risk losing all of your crypto. It would be like giving out your password for your email address. And unlike your email address, there won’t be any Google or Yahoo or Microsoft or Apple to restore rightful ownership.
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This includes companies and organizations. As for Softlab, we won’t ask for your private key, your passwords, or your backup phrases. And we certainly will never ask you to send us money (unless you’re paying merchant invoice). If you’ve never backed up your wallet, here’s a video on how to backup the Wallet. If you keep your wallet on an exchange, you can read our blog post about the pros and cons of doing so.
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