There are two traditional ways to save money, can be through a bank account or stored in a safe place. Money stored in banks is likely to be hacked, otherwise money stored in a wallet is not possible to be hacked but can still be stolen by others.
A similar parable also applies in Bitcoin, the most popular crypto assets can also be stored in a special wallet or crypto asset wallet either online or offline.
Bitcoin online can be stored in two ways, the first is Web Wallet, which is a wallet that is available on a web and can be accessed from anywhere and any device as long as you have an internet connection.
Source
Second, online wallet is software that is downloaded to a computer and allows you to manage Bitcoin. This is safer than web wallet. Because users can manage their own Bitcoin without a third intermediary.
Saving Bitcoin offline can be saved with two choices, namely hardware wallet. It's like a thumb drive (USB), when you store Bitcoin there, you have to put it in a safe place so it won't be stolen.
Second is the papper wallet, this option allows you to store wallet information on a piece of paper, and is completely offline from the internet. With this option hackers cannot get access to your wallet information so they cannot steal saved Bitcoin.
After, find out the type of Bitcoin wallet. The following are the advantages and disadvantages of offline wallet and online wallet.
Benefits of Saving Bitcoin in Online Wallet
1. Easy to Use
Web wallet is like a website like Facebook, you have to open a web browser, then open a website and log in using your username and password.
Then, if you use the wallet software you must open the application from the computer's desktop then enter, and enter the password. Both of these options are easy to access and easy to use, not too complicated and can be used for beginners.
2. Quick Access to Bitcoin
Wallet online is easy to use and offers a variety of platforms that look easy to understand, users also have instant access to make transactions or just look at Bitcoin.
3. Free
Wallet online, usually free to use by filling in some of the terms and conditions listed.
Drawbacks of Saving Bitcoin in Online Wallet
1. Security
Online wallet is always connected to the internet, so it is always vulnerable to hacking. For web wallet security offered is still quite low because all accounts are stored on a central server. This means that hackers can carry out attacks from any computer if they already know the user's password.
Meanwhile, wallet software has a higher level of security because the user's personal information is downloaded to his own computer. So, Bitcoin is stored in one location but cannot be accessed by the internet.
2. Service Providers Can Be Bankrupt
If the online wallet service provider goes bankrupt or is turned off and Bitcoin is in the network, the assets stored there will be exposed and vulnerable to being hacked and stolen. Worse yet, the user's assets disappear and suffer losses without compensation.
Source
Benefits of Saving Bitcoin Offline
1. High Safety
Offline wallet is not connected to the internet, so it is not possible for hackers to get access to the wallet. The only way someone can access Bitcoin that is stored offline is that they get it or steal a hardware wallet and can open it. If someone else does not get it, the wallet will remain safe.
2. Double Confirmation
Hardware wallet is equipped with extra security protection. To view or send funds, you must type the password / code into the device. So, Bitcoin can only be transferred to another account if the sender has access to the device.
Keep in mind keep your wallet hardware security, do not get stolen or placed in a place that can cause damage to the device.
Drawbacks of Saving Offline Bitcoin
1. No Quick Access
Accessing an offline wallet is not as fast as an online wallet, there are steps that users must go through to get their Bitcoin.
2. Physical Damage
Paper wallet and Hardware wallet can be carried everywhere, but unfortunately if you forget to put it, put it in the wrong place, or exposed to water.
There is a possibility that the offline wallet can be damaged. Because there is no online data that stores all the contents in the wallet, it is impossible to recover if it has been damaged.
3. Difficult to Install
Using an offline wallet takes a few steps and not everyone can do it properly. Therefore if you are still a beginner, it might be difficult to install an offline wallet and use it. However, over time this is certainly not a problem when you are used to it.
4. Price
Offline wallet has a price that is quite expensive, on average sold at a price of around $ 90, equivalent to 1.2 million. If you don't have enough funds, maybe the option to use an offline wallet can be considered, especially if you only want to use a small amount of Bitcoin.
Those are some of the advantages and disadvantages of storing Bitcoin both offline and online. There's really nothing better or worse.
Because in the selection of storage of course everyone has their respective considerations and can be very subjective.