Typically, users store bitcoins in an electronic wallet, a piece of software that stores private keys and keeps track of any associated transactions. This can be run on a computer or mobile device. Wallets often provide users with a recovery phrase, so that if the device containing the wallet is corrupted or lost, it can still be downloaded again and reused. Solutions to the risks entailed in storing bitcoin on one’s own device include storing on an exchange and cold storage (on an offline computer or written down).

It is also possible to use multi-signature addresses, whereby any participant who produces a valid signature completes and validates the transaction. A related concept is that of Secret Sharing, with the most common version being known as Shamir Secret Sharing. This concept involves the user splitting a private key using a cryptographic primitive and giving “slices” to different users. Then, depending on how the sharing has been performed, a certain number of individuals in a group (sometimes all, but in other cases only a lesser number of the set) can reconstruct the private key.