Not sure how to store your Bitcoin? Research shows that hardware wallets are the preferred choice for most people.

A foreign Reddit user posted a research survey on cryptocurrency storage methods. The research results show that the majority of cryptocurrency holders choose to store their Bitcoin in hardware wallets, while in terms of private key backup, most people still opt for the most traditional paper backup method.

Most People Choose to Use Hardware Wallets

Reddit user gunnaj posted a part of his doctoral thesis on Reddit on April 30th, revealing some of the survey results. The doctoral student asked 339 individuals five questions related to Bitcoin (BTC) security, focusing on how cryptocurrency holders manage their private key storage. When participants were asked where they store most of their Bitcoin, nearly half (158 individuals) indicated using hardware wallets such as Ledger, TREZOR, and BitLox as their primary storage solution.

Additionally, internet security was also a topic discussed in gunnaj's thesis. About 88% of respondents stated that they had backups of their private keys, with the majority (238 individuals) opting for the most traditional backup method, which is paper-based.

The Study May Not Reflect Reality

While the results of the study suggest that most cryptocurrency investors prioritize the security of cryptocurrency storage, the researchers did not disclose the background information of the sample (respondents), so the research results may have a certain degree of deviation from the actual market conditions. The study also asked respondents if they use "multi-signature" for transaction confirmation, to which one-third of the participants answered "yes."

However, in reality, very few people in the general public use multi-signature, and most people do not even know what "multi-signature" is.

The Most Suitable Storage Method for Beginners

Deciding how to store cryptocurrency is a challenging question for beginners. Changpeng Zhao, the founder of Binance, once stated that it is better for exchanges to hold users' assets instead of users retaining their private keys. While this statement may sound absurd to experienced individuals, it could indeed be a better practice for beginners.

After all, for beginners, the learning curve of storing private keys is high, and any mistake could result in the loss of assets. Over the years, many holders have lost thousands of bitcoins and ethers due to lost backup private keys or damaged devices storing the keys. On the other hand, storing assets on an exchange is relatively straightforward, and users can adjust their spot investment positions at any time.

However, this approach must be based on the exchange itself having a certain level of trust and security conditions. Entrusting assets to an exchange is equivalent to entrusting the custody of assets to the exchange. If the exchange has vulnerabilities in cryptocurrency assets or an imperfect insurance system, investors may still bear significant losses.

Related Reading

• 【Blockcast Podcast】Not your keys, not your Bitcoin: Where is it safe to store digital assets?
• Ledger vs. Trezor Again, Claiming Its Chips Are Only Suitable for Home Appliance Use

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