I would think of it in the same way as I would the value in cash. If say it was 1 BTC where would you feel safe storing $8,000 in cash? Maybe a decent fireproof safe at home would be ok but for 10 BTC or $80,000, I would go for a safety deposit box. That's an individual opinion on risk tolerance, everyone will have there own view on that.

Having several backups increases the risk your seed gets compromised. It's a trade-off between the risk of losing the seed, and the risk of someone getting his hands on it.

Tip #4: Register a FreeBitcoin account

Free Bitcoin started off as a simple Bitcoin faucet. You registered a Bitcoin address (such as your Coinbase address), you solved a puzzle and clicked on the "roll" button and a small amount of BTC was added to your account. You could then return in an hour and roll again.

Free Bitcoin still works like that, and if you roll often (up to once every hour) you might get lucky and win one of the larger prizes. But Free Bitcoin is more than just a faucet. There's a gambling component too, which I recommend you ignore. The really exciting feature on Free Bitcoin is that your account also acts like a very flexible interest bearing savings wallet once your balance reaches 30,000 satoshi, or 0.0003 BTC.

Free Bitcoin's interest rate is currently 4.08 percent. By way of comparison this morning I visited a local bank in the US and was told the interest rate on a business checking account is 0.05%.

Your Free Bitcoin account comes with its own deposit address. This means that if you have a small amount of Bitcoin sitting somewhere else, you can deposit it to your Free Bitcoin wallet and it will earn daily compounding interest. You should consider depositing at least enough to get your balance up to 0.0003 BTC so you can begin earning daily interest.

When you need to withdraw funds, you have two withdraw options. One is an expensive immediate withdrawal. The other is a slow (6 to 24 hr) very low fee withdrawal. With enough planning ahead the slow option will work fine. In my experience the wait time is six hours or less.

One thing to keep in mind when using services like Free Bitcoin and Coinbase is that although you can control the funds that go to the addresses you are assigned on those services, you do not get the private keys for those addresses, so in that sense you really do not have full control of your funds. All this means is that if the service is unreliable you could lose complete access to your funds. I personally consider both Coinbase and Free Bitcoin to be stable and reliable, and for that reason I'm happy to recommend them anyway. However, you should start your experience with Free Bitcoin using a small amount of BTC and then as you get more comfortable with it you can add more BTC to your account in order to get earn more interest.

You do not have to do anything to earn the daily interest. To get the faucet earnings, you do need to log in and roll. I'm going to recommend at least one other Bitcoin faucet on this thread, so this is a good time for some words of wisdom about faucets.

Faucets are advertising sites which dispense small amounts of cryptocurrency as an incentive for traffic. There are lots of Bitcoin faucets out there, and they can be fun to visit. You will not get rich on faucet earnings unless the faucet is a lottery and you happen to score a big prize. With that said, I believe that spending a bit of time visiting faucets is a valuable learning experience especially when you're new. However small the amount, the faucets do give you some Bitcoin and when you have an actual balance to deal with it starts to make more sense. You start to get good at doing math to the eighth decimal place. You might get curious about what the Dollar value of your balance is, so you start checking sites like Coin Marketcap and then do the math to figure it out on an actual balance that you hold.

It's a given that you will go through a stage where you visit faucets. You might visit just one or two several times a day or you might spend hours at a time visiting a lot of them. At some point you'll probably do the math and figure out that you're earning substantially less than minimum wage doing it, but that's OK, because it's part of the education process.

Start visiting the Free Bitcoin faucet as often as you'd like (up to once an hour). When you decide to venture out into other faucets, then use your Free Bitcoin deposit address as the claim address. In this way, all your faucet earnings funnel into a single interest bearing address.

Moderator edit: Removed referral link

If you're referring to hardware wallet then while you are creating and installing the firmware for the first time, the wallet will give you a list of words that you should keep safe. If the hardware gets broken for some reason, you can recover your wallet using the list of words that was first given to you.