Having more than one cryptocurrency wallet is something that any smart investor or trader should consider very seriously. You know people have this folly and comfort of having to deal with just one account at a time.
As much as it is always a lot easier to control one wallet, this is not the same thinking that a bitcoin investor should take. It requires more than just a need for convenience when deciding how many bitcoin wallets to have at any given time.
Why it’s a bad idea to store all your Bitcoin in a Single Wallet
Bitcoin just like the other cryptocurrencies continue to evolve with so much knowledge about your safety as a trader emerging. Something about bitcoin is that malicious people and cybercriminals are very much interested in sabotaging it. Remember, there are individuals who don’t still believe that bitcoin is just about to curve out its space in the global financial sector.
Whenever you open a bitcoin wallet and buy the first bunch of bitcoins, you buy a share of risk of attack. The blockchain technology that is the backbone of bitcoin does not reveal the identity of investors with a stake in it but it is possible to see an account with an extraordinary stash of the digital currency. This means that the account can easily be a target of crypto hackers.
Assuming you hold up to more than 10000 BTC in your bitcoin wallet, it translates to several million dollars. Cybercriminals will not find sleep seeing such an amount in your account. You never know whether the mission of certain individuals in the Blockchain sis to spy-they keep checking is just out how much is held in which account.
Granted that it may not be easy for crypto hackers to find a way into the blockchain as the technology used isn’t easy to penetrate, there is another risk of having the coins all stashed in one wallet. Think about this, the risks if you lose a private key code.
Private key code is what will give you access to the crypto in your wallet. In the unfortunate event that you lose this key code, all the fortunes will go down the drain. It may sound like a bad dream but the reality is that when you lose your private key code for the crypto wallet, forget about all that is inside there. You have to be extra careful with this is series of 32 bytes code. So having more than one bitcoin wallet is not for prestige but a backup just in case one wallet slips away.
Get an extra bitcoin Wallet
For a smart bitcoin investor like you, protecting your wallet from any possible risks is key. The whole business of trading in bitcoin and any other crypto is ability to deal with risks and remain on the winning side all through.
It may be enticing and an amazing thing when you open your wallet and marvel at just how much bitcoin you have. The amusement and fun that comes with owning let’s say 9000 BTC in one account may not compare with if you share them at 450 BTC in two accounts. But fanciness aside, are your bitcoins safe? The answer is no.
A crypto wallet acts as your reserve from where buying and selling the currency is initiated. You will always have the wallet as a safe haven where the coins can find rest as you monitor the market trends.
Today, there are different wallets available in the market that allows you access to more than just one coin at a time. For instance, Freewallet allows you transact in Ethereum, bitcoin, Litecoin and many more. This is a possibility but should this be something for you? I guess not for someone who wants to spread risks.
The crypto specific wallets only allow you transactions for that specific type of cryptocurrency. Let’s say a wallet that holds and allows transactions only for Ethereum or bitcoin. In this case, if you are interested in investing in more than one cryptocurrency at a time, multiple accounts are necessary. This is also a smart way to take the risks off your investments.
So is it sensible to have more than one bitcoin account?
Having more than one bitcoin account saves you from losing investments in case of a crypto hacking. It is the best way to avoid losing large sums of money and becoming a single target of all manner of malicious activities tin the blockchain.
Even for the same currency, it still makes a lot of sense to trade from two different wallets depending on how many investments lie in the wallet. The amounts transacted in your accounts should remain reasonable; not too high to expose you to necessary risks.