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Worried About Bitcoin Security? Store It Safely with Ease

Stevo - The Armchair Banker

Stevo - The Armchair Banker

— 8 min read
Worried About Bitcoin Security? Store It Safely with Ease

“Lost Your Keys? That’s Worse Than Dropping Your Car Off a Cliff”

“Imagine this: you’ve got Bitcoin sitting pretty in a digital wallet, feeling like the Wolf of Wall Street.

Then one day boom you forget your password, lose your recovery keys, and just like that, your Bitcoin vanishes forever.

Not stolen. Not hacked. Just gone.

It’s like watching your car roll off a cliff in slow motion, except you can’t call insurance.

Sound stressful? It doesn’t have to be.

In this guide, I’ll walk you through the best ways to store your Bitcoin safely so you never lose it or let anyone else get their grubby hands on it.

Simple steps, zero stress.

Let’s keep your hard-earned Bitcoin exactly where it belongs: with you.

You’ve finally done it. You bought some Bitcoin.

Maybe it’s $50, maybe it’s $5,000. Either way, you’re officially part of the digital currency revolution.

Nice work, mate.

But here’s the thing – if you’re storing that Bitcoin wrong, you’re practically leaving your wallet on the bar and hoping no one notices.

Don't worry mate. I’m not here to lecture you about cyber ninjas or hackers in hoodies.

This guide will show you how to store Bitcoin safely and easily without the tech jargon.

Whether you’re a total newbie or someone who’s heard a few horror stories, I’ve got you covered. It’s Bitcoin for beginners – simple, practical, and no stress.

Let’s get you sorted, shall we?

Why Bitcoin Security Matters (And Why You Should Care)

Imagine this: you buy Bitcoin, stash it on a dodgy app, and wake up one day to see it’s vanished faster than a politician’s promises.

Unfortunately, this happens more often than you’d think.

Why? Because people underestimate how valuable and vulnerable their Bitcoin really is.

Here’s the truth: Bitcoin is digital money. Unlike cash under your mattress, it lives online. If you don’t store it properly, hackers, scammers, or even plain bad luck can take it away forever.

The good news? Storing Bitcoin safely isn’t rocket science.

With the right tools and a little know-how, you can protect your digital treasure like it’s the crown jewels.

Step 1: Choose the Right Bitcoin Wallet

To store Bitcoin safely, you need a Bitcoin wallet. It’s like a digital safe that holds your Bitcoin and protects it from prying eyes.

There are two main types of wallets:

  1. Hot Wallets – Online wallets connected to the internet. Convenient, but more vulnerable to hackers.
  2. Cold Wallets – Offline wallets (like USB drives) that store Bitcoin away from the internet. Super secure but slightly less convenient.

Real-Life Example: Sarah, a Melbourne nurse, started with a hot wallet because it was easy to set up. After her Bitcoin grew to $2,000, she upgraded to a Ledger Nano cold wallet. Now, even if her laptop gets hacked, her Bitcoin stays safe and sound.

Why It Matters: Hot wallets are great for beginners, but cold wallets offer an extra layer of security as your investment grows.

Step 2: Back Up Your Wallet (Or Risk Losing It All)

Here’s a scary fact: If you lose access to your wallet, you lose your Bitcoin. Forever.

No customer service hotline. No “Forgot Password” button. Just heartbreak.

Every wallet gives you something called a recovery phrase – usually a list of 12-24 words.

Think of it as the golden key to your Bitcoin. If you lose your wallet or device, this phrase lets you recover your Bitcoin on a new wallet.

Pro Tip: Write down your recovery phrase. Don’t screenshot it. Don’t store it in an email. Write it down on paper (yes, old school) and keep it somewhere safe. You can use a seed storage device, something like this - KEYSTONE Crypto Seed Storage.

Another Pro Tip: The Tangem cold storage wallet (Card) from personal use has two types of security. The first being the recovery phrase and the second is the easy self storage security done by Tangem, this is what i opted for becuase a seed phrase is a pain in the a$$.

Real-Life Example: Matt, a uni student from Brisbane, thought he was smart keeping his recovery phrase in a Google Doc. Guess what? His account got hacked, and the hacker used his recovery phrase to empty his wallet. Lesson learned: keep your recovery keys offline.

Why It Matters: Your recovery phrase is your safety net. Lose it, and you lose your Bitcoin. It’s that simple.

Step 3: Use Two-Factor Authentication (2FA)

If you’re not using two-factor authentication (2FA), you’re basically leaving the front door wide open for hackers.

2FA adds an extra layer of security.

When you log into your wallet or exchange, you’ll need a code from your phone or email to get in. It’s like a secret handshake only you know.

Most wallets and exchanges offer 2FA. All you need to do is enable it.

Real-Life Example: James, a 32-year-old tradie, set up 2FA on his exchange account after hearing a mate lost Bitcoin to a phishing scam. Last month, someone tried to log into his account from a dodgy IP address. Thanks to 2FA, they got nowhere, and James’ Bitcoin stayed exactly where it belonged.

Why It Matters: 2FA makes it 10x harder for hackers to break into your wallet or account. Simple, effective, and free.

 Step 4: Avoid Scams (Because They’re Everywhere)

If someone promises you instant riches, free Bitcoin, or guaranteed profits, here’s a tip: run.

Scammers are everywhere in the crypto space. They prey on beginners who don’t know better. Common scams include:

  • Phishing Emails: Fake emails pretending to be from exchanges or wallets.
  • Ponzi Schemes: “Invest $1,000, and I’ll double it!” Spoiler: they won’t.
  • Fake Wallet Apps: Dodgy apps that steal your Bitcoin the moment you use them.

Pro Tip: Stick to trusted platforms, ignore unsolicited messages, and never share your recovery phrase. If it sounds too good to be true, it probably is.

Real-Life Example: Emma, a teacher from Sydney, nearly fell for a scam promising to “double her Bitcoin”. Luckily, she checked reviews and realised it was a Ponzi scheme. Now, she only uses reputable exchanges and wallets.

Why It Matters: Scams are designed to trick beginners. Staying cautious protects your Bitcoin and your sanity.

 Step 5: Keep Learning (Because Knowledge is Power)

Bitcoin is constantly evolving, and the more you know, the better you can protect your investment. Learn about:

  • How wallets work
  • How to identify scams
  • How blockchain technology secures Bitcoin

Real-Life Example: Liam, an accountant, started with $100 worth of Bitcoin and spent time reading blogs and watching YouTube videos about security. Now, he confidently manages his Bitcoin and helps his mates get started safely, too.

Why It Matters: The more you know, the less likely you are to make rookie mistakes. Bitcoin rewards the informed.

Final Thoughts: Bitcoin Security Made Simple

Storing Bitcoin doesn’t have to feel like defusing a bomb. It’s about making smart, simple moves:

  1. Choose the right wallet (start hot, move cold).
  2. Back up your recovery phrase.
  3. Use two-factor authentication.
  4. Avoid scams like the plague.
  5. Keep learning and stay informed.

If you follow these steps, your Bitcoin will stay safe and sound. No stress, no panic – just confidence that your digital gold is exactly where it belongs.

Now go on, secure your Bitcoin and feel like the financial genius you are. Because guess what? You’re ahead of the curve.

And trust me, Dave from brunch can’t say the same.

Resource Recap  - Bitcoin for Beginners

·       Read blogs, watch YouTube videos, or even grab a book like The Bitcoin Standard. Educating yourself helps you make better decisions and not fall for scams.

·       Cold Wallets: Offline wallets (like USB drives or cards) that keep your Bitcoin safe from hackers, such as the one I use – Tangem.

 ·       In terms of exchanges, some good options for beginners include Binance, Coinbase, or CoinSpot (a local Aussie favourite – this is also the one I use and have been using since 2017).

 ·       IBIT: Blackrock’s Bitcoin ETF – ishares Bitcoin Trust (Australia/US) this is listed on the NASDAQ (IBIT) and I’m invested in this ETF, along with holding a small amount of bitcoin via the exchange Coinspot (been on here since 2017) and majority of my bitcoin via cold storage wallet – Tangem wallet (use my link an get 10% OFF automatically).

Here are some straightforward metrics that beginners can use to assess Bitcoin (see below).

CoinMarketCap illustrates many of the below metrics on one page - https://coinmarketcap.com/currencies/bitcoin/

  1. Price: The current market value of Bitcoin, indicating how much one Bitcoin is worth in fiat currency (e.g., USD).
  2. Market Capitalisation: Calculated by multiplying the current price by the total number of Bitcoins in circulation, this metric reflects the total market value of Bitcoin.
  3. Trading Volume: The total amount of Bitcoin traded within a specific period, showing the level of market activity and liquidity.
  4. Hashrate: Measures the total computational power used to mine and process transactions on the Bitcoin network. A higher hashrate suggests a more secure and robust network.
  5. Mining Difficulty: Indicates how challenging it is to mine a new block. The network adjusts this periodically to ensure blocks are added at a consistent rate.
  6. Transaction Volume: The total number of transactions processed over a certain period, reflecting the network's usage and adoption.
  7. Number of Active Addresses: Represents the count of unique addresses participating in transactions, serving as a proxy for user activity.
  8. Fees per Transaction: The average fee users pay to have their transactions processed, which can indicate network congestion and demand.
  9. Mempool Size: The aggregate size of unconfirmed transactions waiting to be added to the blockchain. A larger mempool can signal higher network congestion.
  10. Supply Metrics: Includes the total supply of Bitcoin, the number of Bitcoins mined, and the remaining supply to be mined, highlighting Bitcoin's scarcity.

For beginners, focusing on these metrics can provide a foundational understanding of Bitcoin's market dynamics and network health.

 Slug: store-bitcoin-safely-beginners-guide

Meta Description: Worried about Bitcoin security? This beginner’s guide shows you how to store Bitcoin safely and avoid common pitfalls with simple, stress-free steps.

This is Part IV of your Bitcoin for Beginners: The Quickest Way to Learn About Bitcoin series

Cheers,

Stevo – Armchair Banker MAppFin, AdvDipFP, ADA

‘Meet Stevo, the financial wizard behind Armchair Banker. With 15 years of experience in investment banking, corporate finance, and markets, Stevo’s résumé is so impressive it could intimidate a spreadsheet.’

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DISCLAIMER: The information in this article does not constitute personal financial advice. Consult your adviser or stockbroker prior to making any investment decision.

MORE DISCLAIMERS: Stevo is not a Financial Adviser, however, works as an Investment Banker assisting ASX listed companies with retail capital raises. All opinions expressed and written by Stevo, including all other ‘Armchair Banker’ contributors is for informational and entertainment purposes only and should not be treated as investment or financial advice of any kind. Any information provided from our articles, blogs and written opinions is general in nature and does not take into account your specific circumstances. Armchair Banker and its contributors are not liable to the reader or any other party, for the reader’s use of, or reliance on, any information received, directly or indirectly, from any content by Armchair Banker in any circumstances.

The reader should always (we’re serious about this):

1. Conduct their own research

2. Never invest more than they are willing to lose

3. Obtain independent legal, financial, taxation and/or other professional advice in respect of any decision made in connection with this video.

Full Disclosure: Stevo holds Bitcoin at the time of publishing. Using my provided links/affiliate links could result in a payment or fee discount for Stevo, helps keep the lights on mate.

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