Choose the Safest Bitcoin Wallets:
The Online Bitcoin Wallets allow you access from anywhere as long as you have internet connection. The Software Wallets are downloaded onto your devices(phones, computers, etc.). Hardware Bitcoin Wallets use physical devices to store coins. The Paper Wallets are bitcoin private keys. You can print them from an offline computer.If you want to choose the safest Bitcoin wallets you should look into the hardware or paper wallets.
The Bitcoin wallet is equivalent of a bank account and allows you to store, send and receive bitcoins. There are several types of wallets available: moblie, desktop and hybrid. With the software one you have full controll over your bitcoins, but it is trickier to install and maintain. You can also store the wallet on a removable device if other people have easy acces to your computer. The web wallet is much easier to use. The problem is that it is hosted by a third party. If you use one you should trust that it has high level of security so it can protect your coins. For a review of different Bitcoin wallets visit the article How to Get Started with Bitcoins.
Steps to increase security and privacy
With bitcoin you controll your money which means you must take care of your own privacy and security. Companies are Coinbase and Circle offer bitcoin Wallets but control your private keys. It is for the best to use a wallet where you have controll over your private keys.That is the best way to fully ensure your security. Most Bitcoin wallets create a new adress for each transaction automatically. It is easy to group the transactions and see which ones and connect them with someones identity, because all the transactions are public. To increase privacy and security use wallets like Armory or Bitcoin core. Those wallets download the hole blockchain.The reason is that every time you request data from a wallet the serveris viewing the IP adress and is able to connect it with this data. You can shield your IP by using Tor for better protection.
Create multiple backups to your wallets and keep them at different locations in case of fire or other event that could damage your storage devices. After you print the paper wallet you can laminate it and keep in in a safe box. Use diffrent wallets to keep diffrent amounts of money. Keep your savings onsecure ones like paper or hardware wallets and use mobile or web wallets as spending ones.
How to store your coins
We can break down the four types of wallets into different categories for storage and security purposes. Hot wallets use devices with internet connection, such as web, mobile ,computer or laptop. Because of the risk of theft or loosing them you should use them as a spending wallets. Other services have controll over your private keys. Some of them are Coinbase and Circle. And if you don’t controll your keys as a result you don’t controll your money. A good example of the dangers with such wallets is Mt.Gox. That was the largest bitcoin exchange till 2013. Their users were left without their bitcoins when they claimed they were subject to a theft and rtheir accouts were empty.
For increased security choose the safest Bitcoin wallets like paper and hardware wallets and some software wallets that are on an offline computer. This eliminates the risk a malware or a hacker could steal your bitcoins. Multisignature wallets require at least two parties to sign transactions in order to spend coins. In 2-2 wallets the two parties have to sign the transaction and in 2-3 wallets at least two of tree sides have to do it. Armory offers multilock featute that allows up to seven participants to approve the transactions. Those wallets make it much easier to controll shared funds.