How to Store Bitcoin

Bitcoin wallets store and protect the public and private keys, allowing you to send, receive, and store bitcoin. Bitcoin wallets can come in the form of software or hardware devices.

Bitcoin wallets hold a user's keys, allowing them to sign transactions on the Bitcoin blockchain. Wallets also allow users to receive bitcoin and store it securely.

Cold storage wallets isolate bitcoin private keys from the internet. Cold storage offers superior security at the cost of lower convenience.

Custody is a service provided by an entity, called a custodian, who controls and safeguards assets which belong to another party.

To protect Bitcoin's private, free nature, many developers are actively working on ways to make chain analysis heuristics obsolete and ensure that Bitcoin users can continue to transact pseudonymously.

Choosing a Bitcoin wallet relies on several factors, including the use cases of each individual user. Hardware wallets are optimized for long term storage while mobile and desktop wallets are best for day-to-day spending.

Depositing funds in a traditional bank account and storing bitcoin with a custodian are not equivalent. Banks have greater physical access to your funds than bitcoin custodians do to your bitcoin.

The exact number of lost bitcoin is unknown, but most estimates report that 3-4 million bitcoin are unrecoverable. Lost bitcoin increases the value of the remaining supply.