What is digital currency? Is it a wish?
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| What is digital currency? Is it a wish? |
Do you remember when I told you that I wanted to transfer 2 bitcoins to a friend I shall ask him for his address in order to transfer them?
Ok, Do you remember when I said that I am the only one who can conduct my currencies as well I am the only one who has the private key?
The question here is how transferring and receiving are being done?
How can I sell cryptocurrency and where do I keep them?
How can I keep them from being lost? We will answer all of those questions today
Whenever you need to buy anything from any market, You shall be keeping your money with you either in the form of cash in your wallet or in your bank account to pay by your credit card OK, if we apply the same idea to the cryptocurrencies you have;
What will happen if you want to buy something with these currencies?
Where would these currencies be? Where are they located or kept?
As said before; bitcoin or other cryptocurrencies are virtual and intangible currencies You can keep these cryptocurrencies in what are called crypto wallets.
What is digital currency? Is it a wish?
What are crypto wallets and what are their types?
What are the most popular applications currently available for this wallet?
With the widespread use of cryptocurrencies, it was necessary to simulate traditional wallets, however, not all cryptocurrency users are familiar with the world of programming. It is hard for them to log into the blockchain to type the different codes and symbols for the transferring process to take place. The idea of crypto-encrypted wallets emerged at that point.
These wallets are divided into two main types:-
The first type
Is the Hot wallet
The second type
Is the Cold wallet
Now we will talk about the first type, the hot wallet, which is considered the most widely used. It is an application with a simple and easy user interface. It is called GUI or graphical user interface. The function of this type of wallet is to save the private key through which you can control your encrypted currencies and sign the transactions, as we will explain later. With the increasing popularity and momentum of cryptocurrencies in the world, various types of hot wallets began to appear, and most of them are free to download.
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| What is digital currency? Is it a wish? |
began to appear, most of them are free to download.
1) There are wallets that are downloaded directly to the computer,
such as Exodus and Electrum programs.
2) In addition to other wallets that can be downloaded as add-ons to any browser
such as Meta Mask and Binance Chain Wallet.
3) There are wallets that can be downloaded to the mobile as well,
such as the Trust Wallet and Safepal applications. After all these types had appeared, the process became easy and simple. Here, of course, a question popped up:
Are these wallets safe so that I can keep my crypto-currencies?
Is there a possibility that I may lose my wallet and subsequently my crypto-coins at any time?
In fact, no. These wallets are not safe enough, mainly because they are always connected to the internet. Thereby, they are always an easy target for phishing attacks from hackers who would try different ways to access the private key of your wallet so that they can control the wallet and the currencies in it. The methods of circumvention among hackers are various.
For example,
1) One might create a domain with the same name as the site you use to log into your wallet asking you to update your data; once you do, the hacker receives your data and seizes all your currencies.
2) There is another popular scam; pretty to logging in to Facebook, for example, a code will be sent to you in a short message on your mobile to verify that you are the owner of the account. The same applies to wallets when you try to log in. Some scammers have devised a way to get the code that connects you through a technique called “SIM swap”. They communicate with telecom service providers and convince them that they are the owners of the SIM and ask them to replace the SIM with a new one to use in the authentication step. This is the same thing that happened in 2018 with Michael Terpin when he accused the American telecommunications company AT&T that it could not protect him from being defrauded after nearly $24 million in cryptocurrencies were stolen from him.
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| What is digital currency? Is it a wish? |
Okay, away from theft and fraud, is it possible to lose your wallet in another way?
Unfortunately, yes. You may not be able to access your wallet ever again if you lose the private key or even part of it. Which is why crypto experts always advise that one should make more than one copy of the private key and keep them in separate places?
Here comes an important question, attention please:
How can I choose the right wallet for me among all these types?
Actually; to choose the right wallet anyone ought to take care of the following:
1)Safety first:-
Before you deal with any wallet, you must make sure that you download it from the wallet’s website. The developers in charge are trusted. Of course, it is preferable that the programming of the wallet be open source so the users who have a technical background can check the source code, identify the breaking points, and share them with those in charge of developing the wallet to fill possible gaps.
2)Second:-
The wallet must support different cryptocurrencies. Viz, during traditional currency exchange, if you want to transfer an amount of money in euros; you cannot transfer it to a dollar account. It must be a euro account in order to be able to receive it. The same applies to cryptocurrencies. It is not possible to transfer bitcoins to a private address on the Ethereum network [for example] and vice versa. You must first make sure that the wallet you will use supports your cryptocurrency as there are wallets that do not support all types of currencies and their algorithms. That is why we recommend that you use a wallet that contains most of the blockchain networks and the currencies based on them so that it would be easy for you to use.
3)The third thing, which is crucial, is technical support.
Sometimes a certain problem occurs when you transfer cryptocurrencies from one wallet to another. The process is not complete, for example, or the wallet shows an error message or any other problems. You must make sure that the wallet you will use has a strong support team to communicate with and help you in case you are facing a problem.
4) My last advice
is of significance too, please don't use the Hot Wallet constantly. use it when you only want to buy something or transfer currencies to another wallet. But if you have coins to invest and save for a while, or if you have a large amount of crypto-coins. You must use a cold wallet.
Finally,
I want to know what you think in the comments below.
In your opinion, are there other types of electronic wallets that have not been developed yet? Will it be safe? Will it have a longer range in performance and protection without hacking?
I will follow all your answers in the comments. Above all, tell your friends about us,
