When your hashpower generates Bitcoin, the next key question for every miner is:
How do I withdraw it, and where should I store it?
Let’s talk about how to choose the Bitcoin wallet.
First, StandardHash is a non-custodial platform.
This means that the Bitcoin mined from your purchased hashpower is automatically transferred to your designated Bitcoin wallet every day. You only need to set your Bitcoin wallet receiving address in the StandardHash app. And StandardHash app can support any type of Bitcoin wallet address.
There are many types of Bitcoin wallets available on the market, which can generally be divided into two main categories:
Centralized wallets and decentralized (self-custody) wallets
The trade-off between security and convenience is inevitable — the more secure a wallet is, the less convenient it becomes to use.
Currently, most users’ Bitcoin receiving addresses from their exchange accounts fall under centralized wallets. This is the most convenient way to store Bitcoin.
When your mining output is sent directly to your exchange account, you can sell it instantly and cash out anytime.
For most users, this method is sufficient.
As the industry has matured, major exchanges have greatly improved their security mechanisms, and their years of operation have proven their reliability.
Moreover, if you ever forget your password, you can easily recover your account using email or phone verification — something impossible with decentralized wallets.
The other option, more suitable for long-term holders, is the decentralized wallet.
Its security level is higher than exchange platform, as you have full control over your private keys.
Join Medium for free to get updates from this writer.Subscribe
You can back up your wallet with 12 recovery words — these words represent your account and password. With these 12 words, you fully own and control your wallet and Bitcoin.
You can also recover your wallet on any third-party platform, eliminating risks related to any specific provider’s security.
However, this comes with some inconveniences:
- Bitcoin transactions through decentralized wallets are less seamless.
- To sell your Bitcoin, you usually need to transfer it to a centralized exchange first.
- And if you ever lose your 12 recovery words, there is no way to recover your wallet.
In summary:
- If you prioritize convenience, you can store your mined Bitcoin in your account wallet at any exchange platform
- If you prefer long-term storage, use a decentralized wallet and keep your 12 recovery words safe.
Recommended Wallets:
- Centralized (Exchange) Wallets: Binance Exchange App, Coinbase Exchange App, OKX Exchange App
- Decentralized (Self-Custody) Wallets: Binance Wallet App, Coinbase Wallet App (Base), OKX Wallet App, MetaMask, Blockchain.
For more user guides, you can check the Index to StandardHash App User Guide