Cryptocurrencies have become a trend, as well as a source of fear and anxiety for investors due to their high volatility. And you can imagine that you buy some cryptocurrency for a few dollars, and then you are surprised to see that they are worth thousands of dollars. And then you see its price drop dramatically.
To invest in cryptocurrencies, it has been found that Bitcoin Andether And some of the leading cryptocurrencies have the ability to recover their value after their prices drop. However, you may see an unknown currency turn into a very popular currency.
And if you are new to cryptocurrencies, you need to store them somewhere when you buy them. Cryptocurrency is a decentralized computer code. And that symbol can be stored in an exchange like Coinbase Coinbaseor Robin Hood Robinhood. But when storing the symbol on a public stock exchange, the funds may be exposed to risks, or lost when the stock exchange collapses. The only recourse is to deposit it inCryptocurrency wallet.
Read also: It’s time to learn the difference between investment portfolios and digital wallets!
cold wallets Andhot wallets
hot wallet: is the wallet connected to the Internet, while cold wallet It is a memory storage unit, which is not connected to the Internet. and counting cold wallets Safer than hot wallets. “Because if the thieves can steal the (physical) cold wallet, they need the private key, which can’t be unlocked without it.”
It is worth noting that cryptocurrencies do not go to wallets, but keys are stored in wallets.
When money is sent to public keys, those keys propagate the transaction to a chain Blockchain for a specific currency. This is a public record governing the cryptocurrency, and is non-transferable. To access a cryptocurrency wallet, you need the private key. It doesn’t matter where you put your cryptocurrency, but the important thing is that you don’t lose the key.
In fact, paper wallets are consideredAbsolute walletsIt is just a piece of paper on which the public and private keys are recorded. Some investors use hot wallets “For daily use“, while Cold wallets for long-term storage.
And the best option for cold wallets she Ledger nano Ledger Nano X, and supports 1,800 A type of cryptocurrency with ease of use and the ability to connect to a computer, either via Bluetooth Bluetoothor link USB USB. In addition, it has high security, and an easy-to-use interface.
Read also: The best cold wallets for 2021!
Other types of cryptocurrency wallets
depends choice hot wallet on the job it can perform. And the most suitable option for hot wallets she “Coinbase WalletWhere it is offered by the platform Coinbase High efficiency. The platform compensates for the loss of funds. It also provides the best services to the user.
It is also considered a purse.”Trezor Model T T“One of the safest wallets, and it supports more than one 1,600 A type of cryptocurrency. It has distinct properties:
- It’s open source, meaning its encryption can be audited. “This, in turn, reduces the risk of intrusion.”.
- It works like a local application on the desktop. Compared to web applications this adds more security.
Mobile device:
If you are the one who does everything on a mobile device, it is possible to use a “wallet”mycelium Mycelium. Mobile is less secure than any platform, so focus”myceliumOn the security side, with its transparent code that can be scanned and rewritten. and let mycelium Also feature to cancel outgoing transactions.
It is currently available at 100 In the market, the options are many. However, some of them do not compensate for stolen or lost digital currencies, and leave the responsibility in the hands of the user who is considered “The bank and the user at the same time.”. Therefore, you must be careful, careful and have a sense of responsibility to preserve your money.
Also Read: How to Protect Your Blockchain Wallet During Sale
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