A Beginner’s Guide to Storing Cryptocurrencies

You heard about cryptocurrencies and it made many people millionaires. If you want to get a slice of the fortune, you have to understand everything about cryptocurrencies or kripto para birimleri. Cryptocurrencies are basically medium of exchange created and stored digitally in the blockchain. It utilises encryption techniques to regulate the production of monetary units at the same time to verify the transfer of funds.

Transactions made by cryptocurrencies are irreversible, anonymous, fast and secure. It is irreversible in the sense that nobody – even the President or your miner can alter the transaction once it is confirmed. It is anonymous because the accounts are not connected to real-world identities. It is fast because it only takes a few minutes to complete transactions. Finally, it is secure because of the encryption techniques, which protects you against fraud.

Cryptocurrencies can be seen as money in the virtual world because it can serve as a form of payment. Many merchants these days accept cryptocurrency as a form of payment. There are many types of cryptocurrencies but the most common is Bitcoins followed by Ethereum, Litecoin, Ripple, and Monero.

basics of cryptocurrencies

As soon as you understand the basics of cryptocurrencies, you need to know how to store it securely. Cryptocurrencies are not like fiat currency like US dollars that you can just store them at the bank for security and safekeeping. Since it is digital currencies, you need to store it digitally. You can store your cryptocurrencies in a digital “wallet”. This wallet is simply an address on the blockchain.

You have to know that each wallet has a private and public address. The private address refers to the password that you use to access your funds. The public address is the address that you send funds to. It is crucial that you do not expose your private key until you are ready to spend. Otherwise, you will lose all your money. Now that you understand wallets, it is time that you know the different wallet options out there. Here are the different ways to store your cryptocurrencies:

Mobile wallet

For this, you need to download a mobile application to store your money. It is more secure than an online wallet but if your phone gets hacked, everything in your wallet will be dismissed. You have to be careful.

Online wallet

The online wallet is the easiest way to store your cryptocurrencies. However, it is not that secure. If you are looking for a long-term solution, the online wallet is not the best one. It is only beneficial for buying things and funding other trading accounts.

Desktop wallet

The desktop wallet is akin to the mobile wallet but it is for desktop computers only.

Paper wallet

You can actually store your private key using paper. In fact, this is the most secure and hacker proof alternative. However, it is not very convenient. If you consider this one, be sure that you keep it in a safe place.

The wallet is important in trading. As soon as you settle everything, you can start actively trading. However, there are many investors who choose to tuck the currencies for now in the hopes of getting higher prices in the future. Whatever you choose, you need to ensure that it is safe from prying eyes.

Instagram