Crypto wallet explained

Let’s summarize about crypto security and, if necessary, see Part 1.

Bitcoin security is important. Your bitcoin or any other cryptocurrency has a unique address or identification or private key. Therefore, you need to realize how important it is to keep it. If you lose it, it is difficult to recover, hence the need to secure it as best you can.

I must make this clear, because security must be paramount and must not be taken lightly.

There are countless stories of people who lost access to their computers (whether through negligence or abuse) and ultimately failed to recover their bitcoins or other cryptocurrencies. This should be equivalent to leaving your wallet vulnerable either through a pickpocket or through carelessness when you are outside.

Fortunately, there is a way to be a double protector of your assets. A secure hardware wallet will ensure that if you unfortunately lose access to your computer or tablet, etc., (in any way) you will be able to recover your bitcoins, ethereum, litecoin, etc.

A hardware wallet allows you to recover your cryptocurrency on any other computer, as this is essentially a USB connection that you use to secure your transactions.

Second level of security.

Trezor is the original hardware wallet and is easy to set up for your bitcoin security. There are other products available, but for the rest of this article I decided to focus on the Trezor hardware portfolio.

The basic principle for the security of Trezors’ bitcoin is zero trust.

Using the Trezor screen, you can independently check and physically confirm each transaction directly on your device.

It also requires a pin from you every time you enter. This way you ensure that you are present at all times.

As a single-use device, there are no other features in the wallet.

Simply equals extra security.

Trezor is no exception to the risk of malware or viruses, period. However, the fewer devices Trezor communicates, ie. there is no Bluetooth, wifi or Qr code scanning, so the simpler the communication protocol, the more secure your bitcoin security.

In addition, the Trezor has no battery. When it is turned off, it is turned off and your coins are safe from any cyber attack.

I hope I have emphasized the importance of bitcoin security. The main problems are zero trust and concrete security. Also make sure that your backup process is just as secure, ie. if necessary, make sure your data is available to someone you explicitly trust.

In the first days of its launch in 2009, several thousand bitcoins were used to buy pizza. Since then, the sharp rise in cryptocurrency to $ 65,000 in April 2021, after a heartbreaking decline in mid-2018 of about 70 percent to about $ 6,000, has stunned many people – cryptocurrency investors, traders or just curious missed the boat.

How it all started

Keep in mind that dissatisfaction with the current financial system has led to the development of the digital currency. The development of this cryptocurrency is based on blockchain technology from Satoshi Nakamoto, a pseudonym apparently used by a developer or group of developers.

Despite many opinions predicting the death of the cryptocurrency, the introduction of bitcoin has inspired many other digital currencies, especially in recent years. The success of crowdfunding caused by the blockchain fever has also attracted those who deceive the unsuspecting public, and this has attracted the attention of regulators.

Beyond bitcoin

Bitcoin has inspired the release of many other digital currencies. There are currently more than 1,000 versions of digital coins or tokens. Not all of them are the same and their values ​​vary significantly, as well as their liquidity.

Coins, altcoins and tokens

At this point, suffice it to say that there are subtle differences between coins, altcoins and tokens. Altcoins or alternative coins are usually different from the pioneering bitcoin, although altcoins such as ethereum, litecoin, ripple, dogecoin and dash are considered the “main” category of coins, which means that they are traded on more cryptocurrency exchanges.

Coins serve as currency or a means of storing value, while tokens offer assets or useful uses, such as a blockchain supply chain management service to validate and track wine products from the winery to the consumer.

It is important to note that low value tokens or coins offer opportunities to raise, but do not expect such meteorite increases as bitcoin. Simply put, lesser-known tokens may be easy to buy, but they may be difficult to sell.

Before embarking on cryptocurrency, start by studying the value proposition and technological considerations, namely the trading strategies outlined in the White Paper accompanying any initial coin offering or ICO.

For those familiar with the stock and the shares, this is no different from the initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. Everything is done within a regulated environment. On the other hand, the ICO is based solely on an idea proposed in a white paper by businesses – which are yet to function and without assets – that are looking for start-ups.

Unregulated, so buyers beware

“One cannot regulate what is unknown” probably sums up the situation with digital currency. Regulators and regulations are still trying to catch up with cryptocurrencies, which are constantly evolving. The golden rule in crypto space is “caveat emptor”, let the buyer beware.

Some countries are open-minded by adopting policies to end cryptocurrencies and blockchain applications, while keeping an eye out for outright fraud. Still, there are regulators in other countries who are more interested in the pros than the cons of digital money. Regulators are generally aware of the need to strike a balance, and some are reviewing existing securities laws to try to address the many tastes of cryptocurrencies around the world.

Digital wallets: The first step

The wallet is essential to start dealing with cryptocurrency. Consider e-banking, but without the protection of the law in the case of virtual currency, so security is the first and last thought in the crypto space.

The wallets are of digital type. There are two types of wallets.

• Hot wallets that are connected to the Internet, which puts users at risk of hacking

• Cold wallets that are not connected to the Internet and are considered safer.

In addition to the two main types of portfolios, it should be noted that there are portfolios for only one cryptocurrency and others for several cryptocurrencies. There is also an option to have a wallet with several signatures, somewhat similar to a joint bank account.

The choice of wallet depends on the user’s preferences, whether the interest is only in bitcoin or etherium, as each coin has its own wallet, or you can use a third-party wallet that includes security features.

Notes in the wallet

The cryptocurrency wallet has a public and private key with personal transaction records. The public key includes a reference to the cryptocurrency account or address, as opposed to the name required to receive a check payment.

The public key is available to everyone, but transactions are only confirmed after verification and validation based on the consensus mechanism associated with each cryptocurrency.

The private key can be considered a PIN, which is commonly used in electronic financial transactions. It follows that the user should never disclose the private key to anyone and make backup copies of this data, which should be stored offline.

It makes sense to have a minimum cryptocurrency in a hot wallet, while the larger amount should be in a cold wallet. Losing your private key is as good as losing your cryptocurrency! The usual precautions for online financial transactions apply, from strong passwords to vigilance for malware and phishing.

Portfolio formats

Different types of wallets are available to suit individual preferences.

• Hardware wallets manufactured by third parties to be purchased. These devices work somewhat like a USB device, which is considered safe and is only connected to the Internet when needed.

• Web-based wallets provided, for example, by cryptocurrencies are considered hot wallets that put consumers at risk.

• Software-based wallets for desktops or mobile devices are mostly free and can be provided by coin issuers or third parties.

• Paper wallets can be printed, bearing the relevant data on the cryptocurrency owned with public and private keys in QR code format. They should be kept in a safe place until required during the crypto transaction, and copies should be made in the event of incidents such as water damage or printed data fading over time.

Crypto exchanges and markets

Crypto exchanges are trading platforms for those who are interested in virtual currencies. Other options include websites for direct trade between buyers and sellers, as well as brokers where there is no “market” price, but based on a compromise between the parties to the transaction.

Therefore, there are many crypto exchanges located in different countries, but with different standards of security and infrastructure practices. They range from allowing anonymous registration, requiring only email, to open an account and start trading. But there are others that require consumers to comply with international proof of identity, known as “Know Your Customer,” and anti-money laundering (AML) measures.

The choice of cryptocurrency exchange depends on the user’s preferences, but anonymous ones may have restrictions on the degree of permitted trading or be subject to sudden new regulations in the country of residence of the exchange. Minimum administrative procedures with anonymous registration allow users to start trading quickly, while going through KYC and AML processes will take longer.

All crypto transactions must be properly processed and validated, which can take from a few minutes to several hours, depending on the transactions of coins or tokens and the volume of trade. Scalability is known to be a problem with cryptocurrencies, and developers are working on ways to find a solution.

Cryptocurrency exchanges are in two categories.

• Fiat cryptocurrency Such exchanges provide for the purchase of fiat cryptocurrency through direct transfers from bank or credit and debit cards, or through ATMs in some countries.

• Cryptocurrency only. There are cryptocurrencies that only trade cryptocurrencies, which means that customers must already own cryptocurrencies – such as bitcoin or etherium – in order to be “exchanged” for other coins or tokens based on the market rate.

Fees are charged to facilitate the purchase and sale of cryptocurrencies. Consumers need to do the survey to be satisfied with the infrastructure and security measures, as well as to determine the fees that are convenient for them, as different tariffs are charged by different exchanges.

Do not expect a total market price for the same cryptocurrency with an exchange difference. It may be worth taking the time to research the best price for coins and tokens that are of interest to you.

Online financial transactions carry risks and consumers should heed warnings such as two-factor authentication or 2-FA, be aware of the latest security measures and be aware of phishing scams. One golden rule of phishing is not to click on the links provided, no matter how authentic the message or email is.

If you are looking for a good alternative to cash and credit cards, you can try cryptocurrency. Today, this currency is quite popular around the world. Many companies now accept cryptocurrency payments just like ordinary currency. Bitcoin is one of the most popular cryptocurrencies, which is why a large number of people invest in bitcoins. Powered by Blockchain, you can make transactions without any security risks. In this article we will discuss some of the most prominent advantages of cryptocurrency.

Easy transactions

If you often deal with legal representatives and brokers, you know that they charge high transaction fees against each transaction. In addition, you have to pay for many documents, commissions and brokerage services.

On the other hand, if you use cryptocurrency, you can remove all intermediaries. You will use a secure network to perform all your transactions. Each transaction is transparent and does not involve large transaction fees.

Transfer of assets

It is easy to transfer ownership of cryptocurrency from one person to another. Blockchain is behind all ecosystems. Therefore, you can perform all your transactions in a safe and secure environment.

The good thing about cryptocurrency is that it allows you to add third party approval for future payments. If you have this currency, you can easily transfer assets without any problems.

Confidential transactions

In the case of cash or credit, there is a record for each transaction. And these records are also stored in the bank where you have your account. Every time you make a transaction, your bank keeps a record of it. Even if you are a business owner, your bank knows how much money you have in your bank account. This is not good in terms of privacy.

The beauty of cryptocurrencies is that each transaction is unique. Each transaction includes conditions for negotiations. There is a push concept that provides the basis for information exchange. Nothing will be revealed to the recipient except what you allow. So you will have full protection of privacy and identity.

Low transaction fee

If you check your bank statement, you will be amazed to see that your bank has charged a transaction fee for each individual transaction you have made so far. If you make a lot of transactions every day, the total amount of bank fees will be quite high.

On the other hand, transaction fees in the case of cryptocurrency are very low. However, if you hire third-party services to maintain your crypto wallet, you may have to pay for that service. However, these fees are much lower than the fee charged by conventional banks.

Calmness

You can use the Internet to transfer cryptocurrency in complete peace of mind. In fact, anyone can use this service as long as they have access to the Internet. All you need to do is have a basic understanding of the cryptocurrency network. In short, these are just some of the main benefits of using cryptocurrency.

The news this week is that several banks in the United States and the United Kingdom have banned the use of credit cards to purchase cryptocurrencies (CC). These reasons can not be believed – as an attempt to limit money laundering, gambling and protect the retail investor from excessive risk. Interestingly, banks will allow debit card purchases, making it clear that the only risks that are protected are their own.

With a credit card you can gamble at a casino, buy guns, drugs, alcohol, pornography, anything and everything you want, but some banks and credit card companies want to ban you from using their facilities to buy cryptocurrencies? There must be some valid reasons, and they are NOT the reasons given.

One thing banks fear is how difficult it would be to confiscate CC holdings if the credit card holder fails to make the payment. It would be much harder than re-owning a house or car. The private keys of the crypto wallet can be placed on a memory or sheet of paper and can be easily removed from the country, with little or no trace of its location. There may be high value in some crypto portfolios and credit card debt may never be repaid, leading to bankruptcy and significant loss to the bank. The wallet still contains the cryptocurrency and the owner can later access the private keys and use a local CC exchange in a foreign country to convert and pocket the money. A really awful scenario.

We certainly do not advocate such illegal behavior, but banks are aware of the possibility and some of them want to close it. This cannot happen with debit cards, as banks are never without pockets – the money comes out of your account immediately and only if there is enough money to start. We are struggling to find some honesty in the bank’s history of limiting gambling and risk-taking. Interestingly, Canadian banks did not intervene, probably realizing that the reasons given were false. The result of these actions is that investors and consumers are already aware that credit card companies and banks really have the ability to limit what you can buy with their credit card. They do not advertise their cards in this way and this is probably a surprise for most consumers who are used to deciding what to buy, especially from CC Exchanges and all other merchants who have concluded trade agreements with these banks. The stock market has done nothing wrong – neither have you – but fear and greed in the banking industry are causing strange things to happen. This further illustrates the extent to which the banking industry feels threatened by cryptocurrencies.

At this point, there is little cooperation, trust or understanding between the world of fiat money and the world of CC. The CC world does not have a central control body where regulations can be applied anywhere, and this leaves every country in the world trying to figure out what to do. China has decided to ban the CC, Singapore and Japan are embracing them, and many other countries are still scratching their heads. What they have in common is that they want to collect taxes on the profits from investing in CC. This is not much different from the early days of digital music, as the Internet facilitates the unrestricted distribution and distribution of unlicensed music. Digital music licensing schemes were eventually developed and adopted because listeners were OK to pay little for their music instead of endless piracy, and the music industry (performers, producers, record companies) was along with reasonable licensing fees, not with nothing. Can there be a compromise in the future of fiat and digital currencies? As people around the world enjoy more than the incredible bank profits and excessive banks in their lives, it is hoped that consumers will be treated with respect and will not be forever burdened with high costs and unjustified restrictions.

Cryptocurrencies and blockchain technology are increasing the pressure around the world to reach a reasonable compromise – this is changing the game.

Stay on the line!

STORAGE OF BITCOINS

Bitcoin is a well-known digital currency and is unlike the physical or traditional currencies used around the world. This is a completely different type of currency because it does not exist in physical form or form in the world. They are mainly stored technically and used in the world of the Internet. If you want to use bitcoin, you need to have a bitcoin wallet.

What is a bitcoin wallet?

In general, the bitcoin wallet is a software program in which bitcoins are stored securely. The wallet is similar to a virtual bank account and allows a person to send or receive bitcoins and save bitcoins. Those people who use bitcoin and have a balance, they receive a private key or secret number for each bitcoin address that is stored in the bitcoin wallet. Without a private key, a bitcoin transaction is not possible. You can use your bitcoin wallet from anywhere in the world.

The main reason for getting a bitcoin storage wallet is to use bitcoin easily and safely. This is a digital wallet that can work easily on your smartphone and computer devices. If you are worried about hacking, then this is the best option because it gives complete security and safety to your bitcoins.

Different forms of bitcoin wallet

There are several different forms of bitcoin wallet and each of them is used according to their requirements.

The four main types of bitcoin wallets are listed below:

• Mobile

Those who use bitcoins on a daily basis, regularly trading, buying goods and other daily activities, for them the mobile BTC wallet is a great option. This is an application that works on your smart phone. This will store your private keys and allow you to pay for things or use cryptocurrency from your phone easily from anywhere in the world.

• Network

Web wallets allow you to use bitcoins from anywhere easily and in any mobile or web browser. Remember to choose your web wallet carefully because it stores your private key online and can sometimes be risky.

• Desktop

Desktop wallets are downloaded and installed on your computer or desktop and offer you complete control over the wallet. You can store a private key and create a cryptocurrency account address to send and receive bitcoins.

• Hardware

Hardware wallets are offline devices and are the most secure bitcoin wallet. They store your private keys offline so they can’t be hacked. This means you can use it on your computer whenever you want.

Your coins are completely safe because your bitcoin wallet can only be controlled by you. No one else can get the details of your bitcoin unless you share the password. So use bitcoins without worrying about theft.