The Best Ways to Store Your Bitcoin Assets in 2025

Just add the highly volatile nature of Bitcoin to the table, so it is very hard to keep up with all the essentials if you are to invest in the most popular digital asset nowadays.

So, how do you store your Bitcoin safely? Let’s take a look at all that you need to know!

What is a Bitcoin Wallet?

So, the first thing you need to know before trading with Bitcoin is that you need a crypto wallet. It is a program or a device that keeps your Bitcoin assets, private keys – all in the same place.

To access your wallet, you need an internet connection, and sending or receiving Bitcoin is very simple. To send over Bitcoin assets to someone, you need their wallet address.

Once you enter the address, choose the amount you wish to send over, sign the transaction with your private key, and confirm it! If you receive Bitcoin assets, the sender will go through the same procedure, after which you need to accept the payment, and voila – you have more Bitcoin in your wallet!

Types of Bitcoin Storage

Now that you know how Bitcoin wallets work, we can walk you through the best ways to store your assets.

1. Crypto Exchanges

First off, we have arguably the best option for newbies in the crypto world – exchange platforms like Coinbase, Kraken, Binance, Bitstamp, and eToro, just to name a few. If you are actively trading Bitcoin, then these wallets are the way to go.

Exchange platforms keep hold of your Bitcoin, and that is a feature that plenty consider as a disadvantage. Hackers try to break into such platforms all the time, but if you choose a reputable one, you shouldn’t have a worry! An additional layer of security we can suggest here is to only keep what you need to trade on exchange platforms – nothing more.

You can also consider another option here – decentralized exchanges. Such platforms don’t require you to give up control over your private keys, but the downside is that such platforms have not yet reached acceptable levels of liquidity and speed.

In the end, if you decide to go with a crypto exchange, here are the steps you need to complete the store your crypto:

1. Research and compare – you need to find the most reputable exchange platforms and choose one accordingly.
2. Create an account – a process that doesn’t usually last more than a couple of minutes.
3. KYC – reliable exchange platforms will seek to confirm your identity and ask you to complete a KYC process.
4. Deposit – set up your wallet and you can start making transactions!

2. Software Wallets

Moving on, the next option you have at your disposal is a software wallet. Some experts consider it a safer option for storing your Bitcoin assets, as you don’t have to worry about hackers’ attacks or mismanagement issues.

On the other hand, your software wallet is as safe as your device, so you need to be aware of how and from where you access it! For that very same reason, people generally feel like exchanges might be more secure than their computer or smartphone.

There is a good element of truth there, but should you implement the best security practices and store your private keys and recovery phrases offline, software wallets will be much better than exchanges.

If you are interested in keeping your Bitcoin assets in a software wallet, here are a few recommendations from our experts:

• Exodus
• Jaxx Liberty
• Guarda
• Atomic Wallet

A word of caution here  – software wallets can sometimes impose bigger transaction fees compared to exchange platforms.

Are you already sold by the idea of hot wallets? Well, if so, here are the steps to set up one:

1. Set up your wallet – creating an account at hot wallets won’t take more than a few minutes.
2. KYC – software wallets require you to complete the KYC process.
3. Make transactions – you can now use your software wallet to send or receive Bitcoin!

3. Hardware Wallets

For many, hardware wallets are the most secure way for you to store your Bitcoin, as there is no way your private keys can leave your device – unless you hand them out! In addition, hardware wallets require you to confirm transactions directly on the device, which just strengthens their security aspect.

The security does not come with a price. The first downside of hardware wallets is that they are much better designed for long-term Bitcoin holding rather than if you seek to actively trade with it.

Unless you use your hardware storage with an exchange platform, you will need to transfer your Bitcoin on the platform before trading.

Another disadvantage hardware wallets hold is their price. Prices can vary, but you will need to pay good bucks if you are to have the best hardware wallet with the best security features! Notable examples of dependable hardware wallets include:

• Trezor One
• Ledger Nano S
• KeepKey

Here is a quick overview of the steps you have to follow to use a hardware device, i.e. a cold wallet:

1. Buy a device – a portable one is highly recommended.
2. Download the device’s software – you might need to download an additional piece of software to your phone or computer.
3. Remember your seed phrase and keep it safe.
4. Create a new wallet address – you will need this address to send your Bitcoin assets.
5. Send your Bitcoin to the corresponding address – make sure to double-check the address so you don’t lose the funds!

MultiSig Wallets

Lastly, a multisignature wallet is another secure option for you to store your Bitcoin virtual assets. As the name itself suggests MultiSig wallets require users to insert more than one signature for it to approve the transactions. Therefore, these wallets allow for more than one person or device to share the same wallet, but opening it would require at least two signatures.

The downside here is quite obvious – MultiSig wallets can be inconvenient and wouldn’t necessarily be good for everyday use. Arguably the two most popular MultiSig wallets include Electrum and Armory.

Whether you want to share your Bitcoin funds with another person or you want just an extra portion of security, here is how you can use a MultiSig wallet:

1. Decide on the number of signatures needed to complete a transaction
2. Choose the location and the type of the different wallets
3. Create your wallet
4. Remember tosecure your seed phrases
5. Make transactions!

A Sheer Variety of Options

All in all, storing your Bitcoin safely can sometimes seem like an overwhelming process, but as this guide specifies, it is not such a foreign concept.

We understand that as newbies in the industry, you might have knowledge gaps, so hopefully, here, you have found the information needed to get you started on storing your Bitcoin assets!