The best way to store Bitcoin is by using a hardware wallet, like a Ledger or Trezor device. Hardware wallets, like a Ledger or Trezor device, store your private key offline (on the device), meaning users need to connect their hardware wallet device to their computer or smartphone each time they want to send Bitcoin. Storing your private key offline mitigates the risk of hackers or malware accessing your private key and stealing your Bitcoin holdings. Users can hold Bitcoin using an online wallet, also known as a “hot wallet”. However, online wallets are much easier for hackers to exploit when compared to hardware wallets, as online wallets store private keys online. Also, Bitcoin wallets generate a 12 or 24-word backup seed phrase, which is needed to access your wallet if you lose your private key. It’s essential to back up your wallet seed phrase — you can write it on a piece of paper or card and store it in a safe place or use a purpose-built seed phrase storage device. Some users may prefer to store their Bitcoin holdings in their cryptocurrency exchange account for convenience, which can be a good option for those who don’t want to hold their funds in a separate Bitcoin wallet. However, holding Bitcoin in a crypto exchange account means you won’t have full control of your Bitcoin — if the exchange is hacked or has other issues, you may not get your Bitcoin back. It’s incredibly important to choose a reputable crypto exchange that has a proven track record of securing user funds and always allowing users to withdraw funds.