The value of bitcoins plummeted 20 percent after almost 120,000 units of the digital currency were stolen from Bitfinex, a major Bitcoin exchange.

The Hong Kong-based exchange said it had discovered a security breach late Tuesday and has suspended all transactions, however had resumed as of Wednesday.

With the hack of Bitfinex, we cannot stress to you enough of storing your coins in encrypted wallets and cold storage.

There are a variety of ways to store your coins in cold storage. Methods of cold storage include keeping bitcoins:

1. On a USB drive or other data storage medium in a safe place (e.g. safe deposit box, safe)

2. On a paper wallet.

3. On a bearer item such as a physical bitcoin.

4. Online, but on encrypted media where the encryption key is offline.

5. Use a offline Bitcoin Hardware wallet.

Please share your security methods and techniques below.