Understanding crypto wallets and their advantages
Buying a cryptocurrency is only one half of the game, the other half is to store it securely for which we need to have a cryptocurrency wallet. Various types of cryptocurrency wallets are offered by different companies and websites. Before choosing any wallet, we must find out how secure it is as it will contain your cryptocurrencies. It is usually advised that you must not store your cryptocurrencies in the default wallet provided by your cryptocurrency exchange platform as such platforms are always on the radar of hackers and also any DDoS attack on such platforms can put your cryptocurrencies at risk.
If we look at cryptocurrency wallets, then they can be broadly divided into three categories namely hardware wallets, software wallets and paper wallets.
In case of hardware wallets, the private key is stored offline which provides an extra layer of security to your cryptocurrencies. To enable any transaction, you must plug this hardware wallet to your computer and can then perform the transaction. Most of the hardware wallets are compatible with different cryptocurrencies and interfaces.
Software wallets are further classified into three parts namely desktop software wallets, mobile software wallets and online software wallets.
In case of desktop software wallets, you have to download an application directly to your desktop or laptop where you can save your cryptocurrency. However, you can use the desktop software wallets only on that computer where you have installed it, in case there arises some problem with this computer, then your are wallet also gets endangered.
Mobile software wallets are good if you want to install your wallet on your smartphone. Here also, the safety of your mobile or smartphone is important as your wallet is installed in it and any problem on your smartphone can endanger your wallet too.
Online software wallets operate on cloud servers, hence you can access it anytime online. The main problem with this is that your private keys are stored on third-party servers and hence it possesses a greater risk.
Paper wallets provide high level of security in which there is hardcopy of both public and private keys of your wallet. However, you must ensure that this hardcopy must remain safe with you and no stranger gets hold of this wallet. These paper wallets also have a QR code in it.
This article has only mentioned the major and broad attributes of these wallets. For choosing your wallet, you must do a comparative analysis of all the pros and cons of such wallets. You can find more details on types and advantages of wallets on YouTube.
If we look at cryptocurrency wallets, then they can be broadly divided into three categories namely hardware wallets, software wallets and paper wallets.
In case of hardware wallets, the private key is stored offline which provides an extra layer of security to your cryptocurrencies. To enable any transaction, you must plug this hardware wallet to your computer and can then perform the transaction. Most of the hardware wallets are compatible with different cryptocurrencies and interfaces.
Software wallets are further classified into three parts namely desktop software wallets, mobile software wallets and online software wallets.
In case of desktop software wallets, you have to download an application directly to your desktop or laptop where you can save your cryptocurrency. However, you can use the desktop software wallets only on that computer where you have installed it, in case there arises some problem with this computer, then your are wallet also gets endangered.
Mobile software wallets are good if you want to install your wallet on your smartphone. Here also, the safety of your mobile or smartphone is important as your wallet is installed in it and any problem on your smartphone can endanger your wallet too.
Online software wallets operate on cloud servers, hence you can access it anytime online. The main problem with this is that your private keys are stored on third-party servers and hence it possesses a greater risk.
Paper wallets provide high level of security in which there is hardcopy of both public and private keys of your wallet. However, you must ensure that this hardcopy must remain safe with you and no stranger gets hold of this wallet. These paper wallets also have a QR code in it.
This article has only mentioned the major and broad attributes of these wallets. For choosing your wallet, you must do a comparative analysis of all the pros and cons of such wallets. You can find more details on types and advantages of wallets on YouTube.
Taking a Look at Different Types of Cryptocurrency
A virtual or digital currency that has been designed for working as an exchange medium is known as cryptocurrency. For providing security to the transactions, cryptography is used. One cannot track the entries made in a database without fulfilling specific conditions. There isn’t any central authority that has issued it and the nature of cryptocurrency is organic.
Coding is one of the major reasons along with encrypting that makes the cryptocurrency so secure. Keys of public and private types are used by different individuals to transfer cryptocurrency between them. Encryption of multiple layers makes the cryptocurrency more secure. There was a time when it was hard to find cryptocurrency accepting merchants. In today’s world, the situation is quite different. Cryptocurrencies can be used for paying the bills of hotels, apps, jewelry and online services. Bitcoin is the most popular type of cryptocurrency.
Types of cryptocurrency
● Bitcoin (BTC): Bitcoin was the first cryptocurrency which was introduced in 2009. The payment is not reversible. It can’t be taken back once it is gone and its processing fee is very low. Most of the crypto accepting platforms do accept bitcoins.
● Litecoin (LTC): The algorithm named as Scrypt encryption is used by Litecoin. The speed of the transaction is faster as compared to that of bitcoin. The generation blocks become 4x faster as it uses the cryptographic algorithm that is simpler in nature. There is no third party intervention required during the time of exchanging cryptocurrencies.
● Zcash: It is one of the most recently launched cryptocurrencies which is open-source and decentralized. For securing the network it uses a particular and specific proof. It also provides its users with ‘shielded’ transactions option that allows encryption by using an advanced and modern cryptographic procedure.
● Dash: Dash is referred as one the most secretive type of cryptocurrency. It uses the system known as decentralized master code. It uses the architecture of two-tier type for powering its network. It is aiming out for being the first cryptographic currency which is privacy-centric and comes with the transactions which are fully encrypted.
● Ethereum (ETH): Ethereum is a type of cryptocurrency where smart contracts are used. It can also be used to create any new tokens and blockchain applications. It provides with a block time of 15 seconds.
Conclusion:
Reading the guide above, you can know about the different types of cryptocurrencies. There are still a huge amount of hurdles that the cryptocurrency has to overcome for replacing the
traditional currency systems that are currently in operation. The decentralized and global cryptocurrencies have certainly the potential for replacing the fiat currencies that are backed by the government.
Coding is one of the major reasons along with encrypting that makes the cryptocurrency so secure. Keys of public and private types are used by different individuals to transfer cryptocurrency between them. Encryption of multiple layers makes the cryptocurrency more secure. There was a time when it was hard to find cryptocurrency accepting merchants. In today’s world, the situation is quite different. Cryptocurrencies can be used for paying the bills of hotels, apps, jewelry and online services. Bitcoin is the most popular type of cryptocurrency.
Types of cryptocurrency
● Bitcoin (BTC): Bitcoin was the first cryptocurrency which was introduced in 2009. The payment is not reversible. It can’t be taken back once it is gone and its processing fee is very low. Most of the crypto accepting platforms do accept bitcoins.
● Litecoin (LTC): The algorithm named as Scrypt encryption is used by Litecoin. The speed of the transaction is faster as compared to that of bitcoin. The generation blocks become 4x faster as it uses the cryptographic algorithm that is simpler in nature. There is no third party intervention required during the time of exchanging cryptocurrencies.
● Zcash: It is one of the most recently launched cryptocurrencies which is open-source and decentralized. For securing the network it uses a particular and specific proof. It also provides its users with ‘shielded’ transactions option that allows encryption by using an advanced and modern cryptographic procedure.
● Dash: Dash is referred as one the most secretive type of cryptocurrency. It uses the system known as decentralized master code. It uses the architecture of two-tier type for powering its network. It is aiming out for being the first cryptographic currency which is privacy-centric and comes with the transactions which are fully encrypted.
● Ethereum (ETH): Ethereum is a type of cryptocurrency where smart contracts are used. It can also be used to create any new tokens and blockchain applications. It provides with a block time of 15 seconds.
Conclusion:
Reading the guide above, you can know about the different types of cryptocurrencies. There are still a huge amount of hurdles that the cryptocurrency has to overcome for replacing the
traditional currency systems that are currently in operation. The decentralized and global cryptocurrencies have certainly the potential for replacing the fiat currencies that are backed by the government.
How Bitcoin is Different from Other Traditional Currencies?
No discussion on cryptocurrency is complete without talking about Bitcoins. Bitcoin was the first decentralized digital currency. There is no single organisation or any government institution which controls the flow of Bitcoins. All those merchants who accept various cryptocurrency payments do accept Bitcoins too. There are big Bitcoin exchanges from where you can exchange your Bitcoins to fiat money or any other cryptocurrency.
Let us see some features which make Bitcoin different from other traditional currencies.
The first difference related to it is control. There is no central authority or any intermediate network which can claim sovereignty over bitcoins. Bitcoin is essentially a peer-to-peer payment network which runs with the support of miners and users spread all across the world. Since it has end to end payment system, hence the transaction fees are way lower than traditional currencies. This digital currency also provides anonymity for its users. Mining softwares and computers are used by the miners for solving Bitcoin algorithms and approving transactions. In exchange of this work by miners, they are awarded with transaction fees. More on differences here at https://www.cnbc.com/2017/12/14/bitcoin-ether-litecoin-ripple-differences-between-cryptocurrencies.html
The amount of Bitcoins in circulation is very limited. The more the number of Bitcoins that are generated, the harder it becomes to mine more Bitcoins afterwards. Since there is an upper end to the number of Bitcoins in circulation, hence their price will increase day by day.
Blockchain refers to the public ledger which records transactions in Bitcoin. This public ledger can be accessed for verification of transactions, thereby making it more transparent. You can acquire Bitcoins either through mining or through buying it directly from exchanges. Though the number of merchants accepting Bitcoin presently is very limited, but their number is expected to increase soon.
A bitcoin wallet acts as a store of Bitcoin, Public and private keys are utilized for transaction purposes in Bitcoins where the private key remains hidden. There are several types of these wallets each providing different levels of security and features. However there is no insurance for Bitcoins by any government agency hence its safety must be taken care of by the user himself. Therefore to make Bitcoins secure, you must make a proper backup plan and must also choose a robust wallet.
Owing to all these features, the popularity of Bitcoins is increasing and more people are becoming aware of its use and trade. Not only for purchasing goods and services, people are also buying Bitcoins as a long term investment. Bitcoin being the first digital currency is assumed to be the safest investment commodity; however there are plenty of factors which can determine the price and future role of Bitcoins.
Let us see some features which make Bitcoin different from other traditional currencies.
The first difference related to it is control. There is no central authority or any intermediate network which can claim sovereignty over bitcoins. Bitcoin is essentially a peer-to-peer payment network which runs with the support of miners and users spread all across the world. Since it has end to end payment system, hence the transaction fees are way lower than traditional currencies. This digital currency also provides anonymity for its users. Mining softwares and computers are used by the miners for solving Bitcoin algorithms and approving transactions. In exchange of this work by miners, they are awarded with transaction fees. More on differences here at https://www.cnbc.com/2017/12/14/bitcoin-ether-litecoin-ripple-differences-between-cryptocurrencies.html
The amount of Bitcoins in circulation is very limited. The more the number of Bitcoins that are generated, the harder it becomes to mine more Bitcoins afterwards. Since there is an upper end to the number of Bitcoins in circulation, hence their price will increase day by day.
Blockchain refers to the public ledger which records transactions in Bitcoin. This public ledger can be accessed for verification of transactions, thereby making it more transparent. You can acquire Bitcoins either through mining or through buying it directly from exchanges. Though the number of merchants accepting Bitcoin presently is very limited, but their number is expected to increase soon.
A bitcoin wallet acts as a store of Bitcoin, Public and private keys are utilized for transaction purposes in Bitcoins where the private key remains hidden. There are several types of these wallets each providing different levels of security and features. However there is no insurance for Bitcoins by any government agency hence its safety must be taken care of by the user himself. Therefore to make Bitcoins secure, you must make a proper backup plan and must also choose a robust wallet.
Owing to all these features, the popularity of Bitcoins is increasing and more people are becoming aware of its use and trade. Not only for purchasing goods and services, people are also buying Bitcoins as a long term investment. Bitcoin being the first digital currency is assumed to be the safest investment commodity; however there are plenty of factors which can determine the price and future role of Bitcoins.