Wendell from West Palm Beach, Florida wonders if it’s safe to link his newfound Bitcoin to his Google Wallet. If hackers infiltrate his Google account, he wants to know his Bitcoin will be safe. With this in mind, he called the Komando Show and asked about tools he could use to save his Bitcoin data.
I also told him that cryptocurrency wallets are split into two main categories: hot and cold. A hot wallet is, by definition, connected to the internet. This allows you to move your virtual coin and spend it wherever it’s accepted. Hot wallets do come with certain risks, though.
The most secure way to store your cryptocurrency is with a cold wallet — one that isn’t connected to the internet. Physical wallets come in different types but are usually specially designed USB drives that directly store your cryptocurrency for later use. Physical wallets provide you the most protection from hackers in the long run.
For beginners, a wallet app is a great place to start. If you bought into cryptocurrency using Robinhood or PayPal, you don’t own any cryptocurrency you spent money on. Thus, you can’t withdraw anything. However, it is being planned.
Coinbase is also a great resource for new crypto users.