People engaging in a digital currency is beneficial in numerous ways and is becoming very common, the world over. For instance, Bitcoin is one of the digital currencies that originated in 2009. Bitcoin is unique in itself by offering lesser transaction fees than traditional online payment mechanisms. Additionally, it has spread its fame all over in spite of not being a legal tender, giving wings to thousands of other virtual currencies. Bitcoin, the world’s largest cryptocurrency, is made, restored, innovated, with the use of blockchain, a decentralized ledger system. Bitcoin has seen ups and downs in the past, as the Bitcoin price gradually increased by approximately $20,000 per coin in 2017, however, it had seen a fall later after two years to nearly half of its rise. Although it had seen a speedy downfall nearly sooner, it managed to inspire the other projects in the blockchain space.
Bitcoin, often abbreviated as BTC, is one of the primary steps to teach instalment payments. The importance of bitcoin cannot be overemphasized, as it is required to improve the quality of life by introducing an easy form of payments, the world over. Unlike in the past, the human world has become highly aware and asserts its rights and problems, thus are gaining momentum, all over the world, nowadays. If you are confused whether you should invest in cryptocurrency or wondering if cryptocurrency is still a good investment, then read this article and get your answers.
Top Reasons To Take Bitcoin Seriously
1. The Safest Medium For Use:
Any society can be called progressive only when its men and women could feel safe with the upgraded life, for instance, usage of certain applications has become a major part in the human world, thus, transparency is the utmost factor for any organizations or an individual to trust on any digital currency. That is the reason Bitcoin has got fame in no time. In addition to this, many other organizations and individuals look up to it due to its transparency. It has numerous benefits linked to it, to cite an example, not only many agencies published news related to bitcoin but also many other organizations, like, IT companies, hospitals, Microsoft, jewellers have started accepting it. It, additionally, allows us to make payments to various vendors through Bitcoin. The safest part of Bitcoin allows us to secure all the transactions with a sixteen-digit code. Many people believe that even though Bitcoin is crucial in many ways, it has been exorbitantly in demand for developing nations to indulge in. To deduce, it can be said that Bitcoin, the finest cryptocurrency, contributes a lot to safety and security and contributes to the fact that cryptocurrency is still a good investment.
2. It Has A Fantastic Future In The Coming Days:
Bitcoin is one of the most important factors for the development of an individual in particular and the nation in general, ought to be given top priority. Plus, it has also challenged many traditional concepts and raised various relevant issues which have given advancement and wings to digital currency in numerous ways. Not only the agencies and organizations are spreading the news of its popularity and accepting it with widely open heart respectively but also many of the economists, all over the world, have predicted that the bitcoin is going to increase its value with the period of time passing, hence, it assures a relevant and well-famed future in the coming years. People with basic or complete knowledge will find it really easy to be in touch and make use of it since it’s handy and easily accessible. So, if you are wondering if cryptocurrency is still a good investment, you should know that many known personalities commented really well about Bitcoin and also regarded it as the finest currencies in the world far beyond the errors of human and political. While on the other hand, many folks called it a replacement of banks in the near future which is itself a big appreciation at the hands of its users.
3. It Is Time-saving With No Limitations:
Society engaging itself in Bitcoin, a digital currency, is essential in n number of ways and is becoming very common across the globe. Cryptocurrency has made tremendous changes and improvements in the living condition of human life all over the world, specifically Bitcoin by being such a huge help that there is no need to worry even about the engagement of a middle man. Moreover, there is no barrier to downloading the software, and it can be used anytime. There are no such permissions attached to the Bitcoin for further usage of it. So if you are wondering whether you should buy Bitcoin, then you should know about the plus point of using Bitcoin is that you don’t have to wait for long in the traditional style of money related issues. It will not only be a time saver but also be allowing you to give your time to other engagements or associated tasks in your life. Understanding and learning of bitcoin’s basic ethics can be done easily which makes it one of the leading factors even for beginners such as students.
4. It Is Free From Any Political Restrictions Or Pressure:
The internet has revolutionized the world dynamically over the past few decades. Bitcoin is an excellent aid to the digital currency. It is indeed a widespread concern that a large proportion of people the world over is at a speed to live their lives. Technology has helped folks to make it easy for them to save their time and live a qualitative life at the same time. Media and politics, on the other hand, have made the things around easy to spread and certain limitations are getting in the way of it as an effect of the same. Bitcoin has one of the major advantages in this case of dealing with no political interference in any of the software related to cryptocurrency. It allows its users to use it anyway they want it in spite of following the set of unwanted rules on the way of Bitcoin’s usage, as no one wants a manual in their hands for it has to be an easy step for becoming handy to one and all. While other restrictions of the bank are not valid to bitcoin, making it varied from the prior. And not only Bitcoin but all cryptocurrency are still a good investment.
Its enhancement in various sectors, many reasons for not worrying about your cryptocurrency investment, and handy features of Bitcoin have attracted masses to show their interest in it. Thus, it can be considered as one of the transparent and secure digital currency among the presently available options.
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If you are confused between crypto wallet and exchange then we suppose you just stepped into crypto space and don’t know even the basics. Don’t worry, we are not here to judge you but to help you out with your confusion. The reason why anyone can get confused between a crypto wallet and exchange is that mostly both the services are managed by the same company for exchange Coinbase exchange and Coinbase wallet. So, what’s a crypto wallet and what’s a crypto exchange. Let’s find out about them separately first and then find out what is the difference between exchange and wallet. For now, what you need to know is that the main function of the crypto wallet is to keep your cryptocurrencies secure while the function of a crypto exchange is to provide trading services and enable you to buy and sell various cryptos online.
What Is A Crypto Exchange?
When you step into the world of crypto trading and plan to take advantage of it, the first thing you’ll need is a crypto exchange. If you’ve traded in stocks or at least have basic knowledge about it then you must be aware of stocks exchange. Crypto exchanges are just like stock exchanges, just the difference that it lets you trade in cryptocurrencies and not in traditional stocks and assets. So what do we mean by trading here exactly? These trading platforms let you exchange cryptocurrencies and then take advantage of the price volatility for example by buying low and selling high. It also provides you with advanced trading features like margin trading and futures trading, where you can leverage your interest to 100x or even more.
There are many cryptocurrency exchanges focused majorly on beginners. These platforms provide an easy to use interface with the ability to buy crypto with fiat. Once you buy specific crypto, you can then exchange it with any other cryptocurrency of your choice and then make money by crypto trading. So, we suppose you got the outline of how the crypto exchange works. We’ll learn more about it in our comparison of Crypto wallet vs crypto exchange.
What Is A Crypto Wallet?
As we’ve already told you, crypto wallet helps you keep/store your cryptocurrencies. But it isn’t that simple because you can’t directly store your cryptos, it is their private keys that need to be kept safe. When you own a specific cryptocurrency, you basically own its private keys. These private keys are nothing like the physical keys but a mathematical proof of the fact that you actually own the cryptos. Without it, your cryptocurrencies are useless. You need private keys to send your cryptocurrency from one Bitcoin wallet to another or even to access your balance.
Now, it is necessary that you store these private keys somewhere safe and away from hackers and thieves.
Here comes the need for a crypto wallet, as it let you store your private keys i.e. private keys. Not only that, but it also allows you to access your portfolio at one place and then send or receive more cryptos. To ensure the security of your cryptos, these wallets have features like two-factor authentication as well as backup options. You can take a backup of your entire wallet so that whenever you lose your wallet or forgot your password, you can access your wallet and portfolio once again. There are different types of crypto wallet that includes hardware wallet, desktop wallets, mobile wallets, paper wallets and web wallets.
That’s what a crypto wallet does. So, these two are necessary tools not only for trading in cryptocurrency but for simple tasks like buying and keeping cryptos safe. While both have distinctive functions, some people still can get confused in a crypto wallet and exchange due to various reasons. Let’s find out what is the difference between an exchange and crypto wallet.
Crypto Wallet vs Crypto Exchange
To understand what is the difference between an exchange and crypto wallet in a better way, let’s take the example of Coinbase and ask what it provides, some would say trading services while others would say it is a crypto wallet. But the truth is that the company provides both exchanges as well as wallet services. It is where all the confusion starts but it’s not that difficult to understand. Mostly, the top exchanges are providing wallet services as well but their purpose is not to keep your cryptocurrency safe but to ease your work. At the same time, all exchanges inform you beforehand that you should not store your cryptocurrency in the exchange wallet for long and transfer it to a private wallet as soon as the trade is completed.
Now coming to the crypto wallet, many wallets have integrated inbuilt features of crypto trading on their wallet interface. Such a feature lets you exchange cryptocurrencies directly from the wallet. But as we said above it is not their primary focus, so you won’t get as good services as provided on top exchanges. Which includes lower trading fees, advanced trading tools, crypto charts, technical analysis and many more. If you want to buy just a mere amount of crypto, you can exchange it simply within the wallet if your wallet has that feature. But if you plan to trade or invest a high amount, you must look for other options with much better services.
Bottom Line
We suppose now you are aware of the difference between an exchange and crypto wallet. There’s no restriction for using an exchange wallet or wallet’s inbuilt exchange feature, however, there are some points you need to consider while using them. When you use a private wallet i.e. a hardware wallet or a secure desktop wallet, you are the sole owner of your private keys. But when you use an exchange wallet, your private keys are in control of the exchange. The same if using the inbuilt exchange feature of the wallet as then you are not dealing with the exchange directly but through the wallet which is why the trading fees are higher there.
If you are looking for the best Bitcoin wallets or trading platform of 2020, you can trust hardware wallets like Ledger Nano S and Trezor One. If you are looking for exchanges by API, Binance, Kraken, Bitfinex and Coinbase are your best options. Note that before you sign up for any exchange, always do your research and find out everything possible about it.
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When you step into crypto space and try to learn everything about it, there are chances you can get confused between what is a crypto wallet and which type of crypto wallet you should use. If you want a one-word answer for which Bitcoin wallet you should use, we would say Hardware wallet. Don’t overthink, we are here to help you understand the difference between various types of crypto wallets and why leaving crypto on exchange wallet is risky. So, let’s get started and know about different types of crypto wallets and how safe they are.
If you are someone interested in Bitcoin or altcoins and want to invest in it, you might want to know more about investing in cryptocurrency. Well, you don’t need to go anywhere else because, at cryptoknowmics, we provide information about pretty much everything related to crypto. So, just have a look at our guides and end your quest about cryptocurrencies and trading.
Crypto Wallets Explained
In simple words, a crypto wallet is where you store your crypto coins. It can be an online wallet, a software wallet compatible with windows, Linux and macOS, or the most secure type, the hardware wallet. Technically, you don’t store your cryptocurrencies but its private keys in the wallet. There are two types of keys, private and public in cryptocurrency. While the public key is merely an address of your cryptos and comes in use when you want to receive cryptos in your account, the private key is like the password for your assets that you require to access your cryptos. Without private keys, you cannot send or use your cryptocurrencies. Moreover, if you lost your private keys, you would end up losing your cryptocurrencies forever unless you had backup of your wallet.
So, now you know what a crypto wallet, let’s understand its various types and then find our why leaving crypto on an exchange is not safe.
Software Wallet vs Hardware Wallets
There are basically five types of crypto wallets, that includes, web wallets, desktop wallets, mobile wallets, hardware wallets and paper wallets. These wallets, however, can also be categorized simply into online wallets, software wallets and hardware wallets. As you tell by its name, online wallets are the wallets that can be accessed from a browser, software wallets are the wallets that can be used on mobile and computers and hardware wallets are hardware devices that are used to access cryptocurrencies. The reason hardware wallets are considered safe is that it doesn’t require an internet connection and hence is safe from hackers. Another type of offline wallet is a paper wallet, which is basically writing your private keys on a piece of paper and storing it somewhere safe.
Why Web Wallets Are Not Safe?
Web wallets, often called online wallets are the wallets that you can simply access from your browser. Remember that these types of wallets are not recommended for storing large amounts of cryptocurrencies as your private keys can be easily hacked. In these types of wallets, your private keys are either password protected or stored on the site in the custody of the web portal owner. By using these wallets you are actually trusting the third party for keeping your private keys secure even when it is password protected. Either way, you are trusting the custodian or the server where your private key is sitting.
If you don’t know, it is just a matter of a couple of minutes for a good hacker to breach web servers and get access to your private keys. So, no matter how secure a web wallet claims to be, there is always a high risk of security breaches and losing access to cryptocurrencies.
Are Desktop And Mobile Wallets Safe?
Well, Desktop and Mobile wallets are safer than online wallets but still can’t be trusted for keeping large amounts of cryptocurrencies. Desktop and mobile wallets claim to not keep your private keys on their servers but on your devices only which is why they are considered a bit safer than web wallets. However, if the private keys would be stored on your devices, hackers can still get access to them through the internet or by introducing malware into your device. If you decide to store your cryptocurrencies in Desktop wallets, make sure you run antivirus scans regularly and ensure the security of your device. For storing large amounts of cryptos, we always recommend using Hardware wallets, as they are offline wallets and cannot be hacked easily.
Why Leaving Crypto On Exchange Is Not Safe?
Exchange wallets are hot wallets that can be accessed either from web, desktop or mobile. Exchange wallets are not safe for the same reason why web, desktop and mobile wallets are not safe. Moreover, crypto exchanges are the primary target of hackers and there are already many examples of security breaches in exchanges in the past. Take the example of Mt Gox, Quardrica CX or any other exchange that went bankrupt leaving its users in a helpless state. When you keep your cryptocurrencies in an exchange’s wallet, you are actually trusting your exchange to keep your cryptos safe which won’t turn out to be good. With a lot going into crypto space, it is important that you understand and ensure the security of your cryptocurrencies. The first point why you should not trust leaving crypto on an exchange is to never trust a third party for keeping your private keys after all the basic concept of cryptocurrencies is that it is decentralized. What is the point of involving a third party? Secondly, exchanges are highly risky for hacks and security breaches. And lastly, most of the exchanges aren’t even regulated or completely centralized.
Last Words
We guess you’ve understood why leaving crypto on exchange wallet is risky. If you are planning to invest in cryptocurrencies for a longer period or own a significant amount of cryptos, the safest thing is to use either a Hardware wallet or paper wallets. It is the only way you can stay secure from hackers and ensure that no one else can get access to your private keys. So, whenever you trade on crypto exchange or buy or sell assets, make sure you transfer your cryptos immediately after completing the trade.
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In the world of cryptocurrency, you can touch the height of success only if you dare to do so. If you are willing to do something then we got your back. If you are a bit conscious about the possession in cryptocurrency you have to stay aware of the safety of your wallet. Trezor One is the most affordable hardware wallet and it is totally capable of supporting a huge number of crypto assets along with security assurance. In this article, you will get to know the steps to setup Trezor One, the safest hardware wallet.
How To Get Started With Trezor One Wallet?
The first thing to setup Trezor One is to check the seal of the Trezor wallet. Now you have to begin with the steps to set up the wallet.
- Start by connecting the wallet with the computer by using the USB which is already provided.
- Now, turn on the Trezor wallet, here you will see a lock icon and instruction asking to go for Trezor.oi/start.
- Update your browser to the latest version, and choose Trezor as your device.
- Now download the firmware and install it. Then refresh the page of the browser. You are now asked to install the firmware and wait to install it. When it gets installed it will reboot automatically.
- There are only two buttons in the Trezor wallet that are left and right to control the device. When the firmware is installed to your device, tap on the “create new wallet option” in the Trezor wallet interface and confirm this by tapping on the right button.
How to Backup Your Trezor Wallet?
When you are done creating your Trezor wallet, on the interface showing on the web browser, you will get the message “Your Trezor is not backed up”. There you need to click on “Create a backup in 3 minutes”. A warning message will pop-up on the screen, read the warning message which is about the recovery seed. Recovery seed gives you the right and ownership of all the crypto assets owned by you.
Without the crypto seed, you can’t get access to your crypto assets or in other words, you will lose them. You need to keep secure the recovery seed. You can keep it safe by writing it down on a paper or saving it in cloud storage. It will start working by generating and recovering the seed. Backup this seed properly. This seed will allow you to access your crypto assets when you reset your wallet or if it is lost, or stolen.
- Now what you need to do is copy the word showing on the Trezor one’s screen. When you copy it press the right button to go to the next word.
- You will see the second word on the screen, and do the same for 24 words. Copy them correctly one by one.
- When you finish copying all the 24 words click to next. You need to scroll 24 words again, make sure to copy them properly and correctly.
- As soon as you are done with this step, the Trezor page will show you the message that you have successfully backed up your device. Now you need to name your device, type the name you want in the Trezor interface and confirm it on the Trezor one device.
That’s not it to complete the setup and use Trezor One, you need to set up a security PIN for it and then learn to send and receive crypts.
Create A Pin For Your Trezor One Device
After creating your new trezor wallet and taking its backup, the next step is to create a security PIN for the device. This PIN will help you stay secure so that no one else without knowing the PIN can access your crypto wallet. This pin will make sure the security of your device in case any other person will get hold on your device.
- When you get the prompt to set a new password, press the right button to confirm.
- Here, a 3×3 grid will show. The Trezor web interface will not be displaying any numbers but dots in the boxes.
- You need to type the numbers matching with the dots. When you set up the pin code, the Trezor one interface will ask you to follow Trezor through email or social media. Then select your decision and tap on continue.
Now, you have successfully installed and set up your Trezor one wallet and now you can make transactions.
Learn To Receive And Send Cryptos On Trezor One
To receive cryptos in your Trezor wallet, you need to select the specific cryptocurrency which you want to use. If you can’t see the coin in the list but it is supported in the trezor wallet then you need to use a third-party interface.
- After selecting the crypto asset you need to click on receive.
- Now, you need to tap on “Show full address” and then verify the address with Trezor one. Copy the wallet address.
The Trezor one allows you to tap on “show new address” to view more public addresses. For some famous cryptocurrency like bitcoin or any similar currency to it, you can use a single public address for all the transactions. When the transaction will complete, your new balance will show under account 1.
In order To send Cryptos from Trezor One to any other wallet, follow the steps given below:
- The first step is to select your desired cryptocurrency, just like you did while receiving it.
- When you select the crypto asset click on “send”.
- You can paste the address on which you are sending the amount and also select the transaction fee.
- Trezor one has an amazing feature by which you can send cryptocurrencies to multiple addresses at a single time. You can do this by simply tapping on “add recipients”.
- After clicking on send, you need to confirm the transaction, verify the details, and press the button located on the right to complete the transaction.
Conclusion
This is how you setup your Trezor One wallet and then use it for sending and receiving cryptos. Trezor hardware wallet without a doubt is one of the best cold storage wallets and an alternative to Ledger Nano wallets.
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If you are in the search of one of the most intuitive crypto wallets, then you’ve come to the right place. Today, we are going to review the Exodus wallet and learn how to use it to store, receive and send various cryptocurrencies. Exodus wallet is one of the most popular software wallets that you can use on your computer, mobile and even browser. It also enables you to trade cryptocurrencies within the wallet. So, if you are interested to know more about this wallet and wondering how you can use it, then let’s start with it right away.
By the end of this guide, you’ll be able to use Exodus wallet and receive, send or trade various cryptocurrencies using it. Moreover, we’ll also tell you about how you can take backup of your Exodus wallet in case you ever forget its password.
Exodus Wallet Review, Is It Safe To Use?
Exodus wallet is a software wallet that offers many intuitive features and is recommended mostly for beginners. The wallet supports numerous cryptocurrencies and also has an in-built exchange for users who want to trade within the wallet.
If we talk about security, Exodus wallet is as secure as any desktop wallet can be. Although, we still won’t recommend this wallet if you are going for long term investments and for storing a high amount of cryptos. Although, you can still use it for day to day small transactions. Exodus wallet doesn’t store your private keys on its servers but on your device only which is why it is safe to use. Let’s look at the pros and cons of Exodus wallet.
Pros
Multiple cryptocurrencies supported
Easy to understand and use
Compatible with MacOS, Windows as well as Linux Devices
Can be Integrated with Trezor Hardware wallet
Cons
Exchange fee is high as compared to other top exchanges
Can’t use different addresses
Two-factor authentication not available
That’s all in the review of Exodus wallet, now let’s know how you can use the wallet to send or receive crypto.
How to Set Up an Exodus Wallet?
To get started with the Exodus wallet, you need to download the software first from its official website and then install it on your device. Make sure that your computer is compatible with the software and also confirm the site whether it’s official or just a clone site. As we’ve mentioned in the Exodus wallet review, it is really easy to use. However, if you are still having trouble with setting it up on your device, you can use the steps below:
- After you successfully download and install the software, open it and click on Wallet from the left menu.
- The next you need to do is add some coins to your wallet. In order to do so, select the crypto you want to send to the wallet and then click on the receive option. This will open a new screen with your wallet address on it. Either you can use this wallet address to send cryptos from another wallet to this one or you can also simply scan the QR code shown on your screen. You can use this wallet address to receive crypto coins from other wallets. To use the QR code for receiving coins, the wallet you are using to send cryptos must have the QR scanner feature.
So, this is how you can set up an Exodus wallet and then receive coins in it. If you want to know how to send cryptocurrencies from Exodus wallet to another wallet then keep on reading.
Take Backup And Encrypt Your Wallet With Password
Sending cryptos from Exodus wallet is as simple as it is really simple. But before you go on and make your first transaction, there’s an important step to follow. Right after you receive the deposit in your Exodus wallet, it prompts you to set a password for your wallet and complete the backup procedure. While creating a password for your wallet, make sure you don’t use any of your previous passwords and use unique combinations and letters and numbers that only you can remember but no one can crack.
As you’ll complete the backup procedure, you’ll get a recovery phrase that consists of 12 randomly arranged words. This phrase can be used anytime and anywhere to access your Exodus wallet and receive or send cryptos. This 12-word recovery phrase would also be helpful in case you ever forget the password of your wallet or lose access to your device.
As the phrase can be used to access your wallet and its balance, you need to keep it anywhere safe. The best way is to write down the phrase on a piece of paper and store it hidden at your home away from the eyes of thieves. Once, you set up a password for your wallet, you will need to enter it every time you need to access the wallet.
How To Send Cryptos From Exodus Wallet To Other Wallets?
Follow the steps given below to learn how to send cryptos from Exodus wallet to any other wallet.
- First of all, open the software on your computer or mobile wherever you are accessing it and then go to the wallet section.
- Choose the crypto you want to send from the list shown on your screen. If the cryptocurrency you want to transfer is not listed, you can click on the Add More option to add the crypto of your choice.
- On the new screen, you’ll see the total number of cryptos you have and how much they cost in USD. select whether you want to send or receive coins.
- Now, it’s time to enter the wallet address of the receiver. Always be cautious at this step and instead of typing the address, copy and paste it. Even when you copy-paste the address, you should verify it completely.
- Once, you mention the number of cryptocurrencies you want to transfer, hit on Send.
So, that’s all in the Exodus wallet review. Now you are ready to use the Exodus wallet and send and receive cryptos.
Conclusion
As we’ve mentioned above in the Exodus wallet review, it is a software wallet, which is not good to use if you are planning to invest in crypto for the long term. Software wallets and online wallets are easy to hack as the private keys of cryptos are stored on computers and servers. For security purposes always use offline wallets like Ledger Nano S as they can’t be hacked easily and all your cryptos will stay safe. However, you can still use Exodus wallet for small day to day transactions but that too with high precaution.
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If you remember the quadriga CX incident that happened in 2018, you might be concerned about your cryptocurrencies stored in the exchange wallet. Actually, today we are not here to go into the brief about what happened at quadriga CX exchange but how you can save your cryptos from such scams. It is needless to say that the constant hacking in the crypto sector is a notable concern. Almost all the major cryptocurrency exchanges like Mt Gox and even Binance have suffered big hacks. The only difference that made some of them survive while others went bankrupt was the way they dealt with it. To keep your crypto coins safe, you must know how to protect your cryptocurrency wallet from hackers. Let’s find out about the best practices that you can follow to secure your crypto wallet and eventually your crypto coins.
How to Protect Your Cryptocurrency Wallet From Hackers?
Bitcoin and other virtual currencies remained a highly popular target for hackers however, if one is being smart it can also be prevented easily. Moreover, the sector isn’t even regulated by government entities or Central banks which increases users’ concerns about security. So if you want to know how you can protect your digital wallet and eventually invest more, here is all the information you need. To protect your cryptocurrency or Bitcoin wallet from unknown hackers, read the pointers given below:-
- The first and most important point is that you should use a wallet from a well-known source. Always do your research about the wallet beforehand, read its reviews, and find out if it is reliable or not.
- Store coins in a cold wallet instead of online wallets or other types of hot wallets. Cold wallets are offline hardware wallets that help you keep your private keys secure without the interference of any third party.
- Do your homework (Never share your ID password and other wallets related information with anyone). Another point to note is that if you forget your password there is no way to recover it.
- Another way to secure your cryptocurrency wallet is by using the multi-signature feature. You should avoid the same simple password method that gets easily hacked and use a multi-signature of more than one key to authorize a bitcoin transaction.
- Use two-factor authentication for online wallets. Although it is not recommended to use online wallets if for some reason you are using it then make sure you enable 2FA. Most online wallets have two-factor authentication and you should always use it.
- Backup your cryptocurrency private keys (It will be helpful in the case of loss of keys)
- Use strong passwords. If you use an online wallet be careful when choosing a password. Most people use the same password across various websites and services which increases their risk of getting hacked. You should never use your phone number, date of birth, or anything relatable. A good password is a combination of numbers, alphabets, and special cases, so you should create a password that way only especially when dealing with crypto.
- Use good and up-to-date antivirus software. As you know, hackers use viruses and malware software to get access to your computer device, you must scan your device before installing a crypto wallet on it and also set regular scans to be on the safe side. Make sure to keep your antivirus up to date to stay secure from the latest malware and viruses.
- If you use cryptocurrencies on a daily basis, use a separate wallet for it. You can create as many Bitcoin addresses as you want as there is no limit to it and also use numerous crypto wallets as per your need.
- Backup your digital wallet. A backup will allow you to access your wallet in case you lose it or your device fails. Choose a different and safe location for your backup. This way you can get access to your wallet with the backup files and move the funds to another secure wallet wherever needed.
Best Practices To Keep Your Cryptocurrency Safe
Now, that you know about how you can keep your crypto wallet safe, let’s talk about some other factors you should consider to keep your crypto secure. By following these simple points you can prevent yourself from huge losses and be on the safe side.
- Don’t keep all your cryptocurrency in a single place. This way in the case of loss you can protect yourself from huge loss.
- Use trusted and secure networks, don’t use a public hotspot or wifi or something like that to protect your wallet from hackers.
- Don’t talk about your investment, keep all the pieces of information private.
- Conduct smaller trades, don’t go for a big deal and try to fix a limit for yourself.
- When you are browsing online, make sure to check and confirm if the website you are on is authentic. In order to get access to your private information, internet scammers most of the time create a clone website. These types of website are a copy of the official website with a similar URL. So, you must verify the website where you are supposed to enter your personal details including the private keys of your cryptos beforehand.
- While transferring cryptos to another sender, make sure to verify the address. You can make a mistake even when you are copy-pasting the address and eventually end up sending cryptos to someone else. There’s no way to reverse cryptocurrency transactions, so you need to be extra careful in this matter.
Conclusion
These were some of the tips to protect your cryptocurrency wallet from hackers and unauthorized access. In case you are looking forward to knowing about the cryptocurrency wallet that is reliable, read our reviews on top crypto wallets. As we said above, if you want your cryptocurrency to be completely secure and out of hackers’ access, the wise thing is to use a cold storage wallet. When you use an online wallet, desktop wallet, or a mobile wallet, you are basically trusting a third party for keeping your private keys secure. But if you use an offline wallet i.e a hardware wallet or paper wallet, you will have complete control over your private keys. For other information regarding cryptocurrencies and blockchain, stay tuned to Cryptoknowmics and subscribe to our daily news.
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Unlike the jobs in blockchain, for which you need high technical knowledge, starting a career as a crypto trader is pretty simple. However, you would still need to learn a lot about cryptocurrency and trading techniques. The difference between getting a job in a blockchain firm and making money by crypto trading is that in blockchain, you must be from a technical background and know computer programming but in the crypto trading business, all you need is some knowledge of trading and a little bit of experience.
What you do as a crypto trader would affect your investments only, so if things go right, all the profits would be yours and if it goes wrong, you would have to bear the losses by yourself also. Crypto trading is like a passive income, you can do it side by side with your regular job. So, if you are interested in blockchain jobs, you still can be a crypto trader and increase your earnings. In this blog, we are going to talk about how you can start a career as a crypto trader. So, let’s get started with the steps to become a crypto trader without wasting any more time.
How to Be A Crypto Trader
Before we proceed further and tell you about how to be a crypto trader, there are a few things that you need to do. You can’t be a cryptocurrency trader without having knowledge about what is cryptocurrency and trading. If you’ve ever traded in the stock market or forex market, then you don’t need to learn much about trading but about how cryptocurrency works. Unlike stocks and other financial assets, cryptocurrency is much more volatile. You can never be sure about your speculations and where the investments will take you. Once, you read all the basics about cryptocurrency, you can think about investing or trading in it. To start your career as a crypto trader, follow the steps given below:
Open An Account In An Exchange
The only way to learn to trade is to get out in the real field. You cannot learn to trade cryptocurrency by reading articles and doing nothing else. So, the first step is to open an account in crypto exchange and see how everything works there carefully. To open an account in a cryptocurrency exchange, first of all, you must be above 18 years old. Secondly, you would need some documents to complete the KYC requirements and get yourself verified. As a beginner, you can start with easy to use exchanges like Coinbase, Kraken etc. These exchanges also provide you with the ability to buy cryptocurrencies with fiat which is why it is one of the best options for newbies in the sector. After you sign up successfully, complete the KYC and also don’t forget to enable 2-factor authentication for another layer of security.
Purchase Some Cryptocurrencies
Because you are a beginner and just learning things, it’s recommended you do not invest much right away. You can start by buying a little amount of cryptocurrency, as much as you are comfortable losing. The best option is to go for Bitcoin as it is the most promising cryptocurrency at the moment. Or you can also go for altcoins like Ethereum and Ripple.
Keep A Watch
You’ve bought the cryptocurrency of your choice and now ready to take profit from it. Now you just need to keep an eye on the price movements so that you can take advantage of it on time. Subscribe to trusted news sources to keep yourself updated with the latest crypto news and don’t let your sentiments in between. Some common mistakes that traders make are by selling their coins for less by seeing the price fluctuating in the wrong direction. To save yourself from panic selling you must prepare a trading strategy beforehand about when you would liquidate your coins.
Another mistake traders make is by being super positive or greedy. When the price rises up instead of taking profit from it they wait for more which in the long term might turn out to be beneficial but for day trading is not a good practice.
If you cannot invest much time in day trading you can HODL your cryptocurrency for the long term. If you’ll check the history of Bitcoin, you’ll find out how it’s the price has surged from less than a dollar to thousands of dollars. So, HODL is also one of the best ways to earn profits from cryptos but it would only be beneficial in the long term.
So, the bottom line is to sell the cryptocurrency you’ve purchased for more.
What Skills One Must Have To Be A Crypto Trader?
To start your career as a crypto trader you do not need any certification or anything like that. As long as you know how to get profits from your investments, you’ll be called a good trader. Although, certain skills like computer programming can be an ad on to your career. As you’ll move forward with your career, you would need more knowledge like reading cryptocurrency charts, understanding technical stuff, speculating price movements by looking at the coin’s history, etc.
To learn more about crypto trading, you can also subscribe to crypto paper trading platforms. These platforms offer you the services to trade crypto on paper i.e. without investing real money. So, when you would have nothing to lose, you can get acquainted with all the trading strategies and tools.
Our advice is to never stop learning, no matter how proficient you think you are. This also includes learning about blockchain as it is the only way you would be able to decide which crypto coin is good to invest. You should be able to tell the difference between a profitable crypto asset and the one otherwise. But how would you know which crypto is better? Any crypto that provides some value to the existing market can be called good crypto indeed but not always what’s shown is true. So, you must dig deep and find out about the company behind the cryptocurrency and whether what they are claiming has some base or not.
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The cryptocurrency market has evolved remarkably over the period. Especially over the last few years advance oversight and regulatory control have made this a conventional investment market. cryptocurrency businesses said to be the most advanced and highly beneficial decision as it introduces you to massive trading opportunities. The number of individuals participating in the crypto business is increasing tremendously in the marketing area. To step in the right direction where you can attract more individuals involved in the crypto world, you must think about using cryptocurrency in your business. Once you understand the picture of the cryptosystem, you will be able to see the incredible advantages of it and the versatility of this currency. For instance, if we define it in the simplest words, it is people’s digital money. Before we step to the section why you should accept crypto payment, let’s learn about its pros and cons.
Pros And Cons Of Cryptocurrency
Pros
- Transparency
- Incentive to invest
- Low transaction cost
- No inflation
- Easy to access
- Privacy
Cons
- Market fluctuations
- Cannot be recovered if lost
Why Consider Crypto As A Payment Option In Your Business?
Now that everyone is putting their foot forward in the world of digital marketing, the way of businesses is evolving so fast. With the help of new advanced technologies, we are now capable of making better security assurance and very profitable business deals. You must be wondering why you should consider cryptocurrency as an option when you already have digital transactions such as via debit or credit cards? Here is the difference, these are government-issued currency and hence the government has the accessibility over it while on the other hand, cryptocurrency is not bound by any governmental norm, it is completely in your hands. In this way, you can have complete authority to process benefits and loss of your business and also to have a fresh record of market trade. Have a look at the below-mentioned points to get a clearer reference to this context.
- Zero transaction charge- Direct rewards from the network, and hence no or very little fee for miners.
- Ownership- Only you have the power to access your digital keys. No one can freeze or limit your currency without your will, not even the government.
- High security- Digital currency provides you with the best identity protection. Unlike banks, you can send your crypto to any recipient without providing any sensitive information.
- Accessibility- It is completely electronic payment mode. So, you don’t need any bank or line of credit to make transfers.
- Risk assurance- This is a big advantage that cryptocurrency transfers are irreversible which means it is risk-free for sellers.
- Immediate settlement- It does not require any third party. You access all the important aspects on your own. For example, you do not need any third party involvement for approvals, external references, or date or time settlement.
- Easily accessible- All individuals with access to the internet have access to the cryptocurrency market and can use and store crypto coins.
- Universal consideration- Once you are a part of the crypto world you will receive global recognition and hence you will have the option of an easier and wider range of transactions.
If you think forward, you will understand that in the future, cryptocurrency is going to allow you to have ultimate control over your money. With the comparison of all other currencies, it will provide you with fast secure global transactions with lower transaction fees. If you will use it smartly, it will open the door of many emerging systems that have the potential to improve the entire global economic system.
Invest In Crypto And Increase Your Profits
Besides adding crypto payment options on your platform, if you have made up your mind to invest in cryptocurrency for the growth of your business, you must want to know what is the best cryptocurrency to invest in? If you are looking to do it for the long term, you must search for some facts and details about different cryptocurrencies. Though it is not easy to say which one is the best because all the cryptos have remarkable significance in today’s market. But if you are a beginner and do not know much about this field, we advise you to go for Bitcoin. As it is noticed that in the last 10 years, bitcoin has surged tremendously in price and provided its investors with unlimited profits. But, of course, it is totally on you, which currency you want or choose and why?
Things You Should Remember Before Investing In Crypto
As a smart entrepreneur, you must do some research before adding any digital money to your business system. As you know that cryptocurrency is a decentralized currency and has no bank accessibility or any other government rule, which makes it clear that you need to manage your account all on your own. So, you should make sure you have enough knowledge about it. Below are some points, you must be aware of before you invest your cryptocurrency in any business.
- Always use a reputable online crypto exchange- Technology is your best partner as crypto market trades online only. Trusting the right exchange, having a good wallet, a good computer and enough trading knowledge are some things you need to get started.
- Do not forget to diversify your portfolio- Remember that Bitcoin is not the only currency among traders. There are many other currencies which are famous like Ethereum, do consider other options.
- Be prepared for Volatile Swing- You should be ready for the ups and downs as the prices can fluctuate dramatically. You need not panic and work smarty.
- The crypto market is decentralized- We are mentioning this over and over again, banks do not have any control over it, which means that only you would have control over your money.
Now that you have enough knowledge about why you need to accept crypto payments and how you can benefit from investing in cryptocurrency, you must remember that while you can earn profits with crypto, you can also lose it with the same speed. We hope that this article helped you in resolving all your doubts about cryptocurrencies and why you should add it to your business. For further details, you can read more articles on our website and learn more about crypto and blockchain.
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Are you scared of losing your investments done on cryptocurrencies? Do you skip a beat every time you read about the exchange being hacked or money being stolen from crypto wallets? As the crypto industry is growing, similarly the cyber hacking industry is also blooming with sophisticated techniques to fish for money from crypto investors. However, you can protect your funds by judiciously utilizing some of the products available in crypto space. Paper wallet is one of the crypto products, which can assure the utmost security of the keys of your cryptocurrencies. In this guide to paper wallet, we’ll learn more about this hardware crypto wallet along with the benefits associated with it. We will also try to understand the basic steps to set up the paper wallet.
What is Paper Wallet In Cryptocurrency?
If crypto is a digital currency backed by the complex mathematical problem, then why do we need a wallet in the first place? What do crypto wallets actually store? A cryptocurrency wallet can be hardware USB like device, physical medium, or any software, which actually stores the public key (like an email address-known to all) and private keys (like a password-known to you only). For storing the keys, especially private keys which is just a long string of random characters (along with recovery phrases), crypto space offers hot/online and cold/offline wallets. Generally, cold storage is preferred to secure your keys which can be USB like devices or simply a paper.
A paper wallet is a cold or offline crypto wallet that stores the private keys securely. What is a paper wallet? Simply, it is a piece of paper with a private key written on it which dilutes the chances of getting your wallet hacked by cyber attacks. With a paper wallet, you can completely control your keys keeping away from virus and malware attacks. You just need to store your paper wallet in a vault with a key hidden in your most secure place. Just kidding! Keep the paper as safe as you can.
How To Create A Paper Wallet? | Guide To Paper Wallet
Crypto paper wallets are the offline cold storage which is generally considered as the most secure method and better than vulnerable online wallets to store private keys of your digital assets. Unlike the other wallets, you do not need to configure but to create your own paper wallet. Pheew!! So much work? Relax! You just need to take out a print out of the QR codes associated with your wallet and keep it safe. Whenever you wish to use your coins, you just need to scan these codes.
Bitcoin paper wallet generators are available online to create your paper wallets. Basically, generators are open source software (sometimes hardware devices too!) that are exclusively designed for generation of highly secure Crypto paper wallets. Most popular generators are BitAddress, WalletGenerator, and Mycelium Entropy. You need to follow simple steps to know about paper wallet creation:
- Google the name of any generator mentioned above. Let’s suppose you clicked on BitAddress.
- Now just sit back, and move your mouse randomly (play with your mouse!) on-screen or enter a random text and keep an eye on the screen.
- After a few seconds of random movement, two QR codes will be displayed on your screen: public and private along with the random texts.
- You just need to print that paper (Don’t save it on your system!) and keep it at the most secure place.
- For extra security, you can add a passphrase by filling the checkbox “BIP38” for the purpose of encryption of the paper wallet.
- You are all set to secure your coins in a crypto paper wallet that too within a minute (if your internet connection is intact!)
Points of Caution
- Make sure your system is not having any malware or virus by running your antivirus software.
- While you are generating and printing your private keys, assure that no one around you is keeping an eye on your keys.
- You can switch to the process of the “advance” or offline version to generate keys where keys will be generated offline without any risk of cyberattacks.
- Always clear the cache or history of the web browser after generating your keys.
- Never ever keep your keys in your system either in the download section or in any folder.
- High-quality paper with a damage proof storage place must be chosen to keep your keys secure. You can also laminate the paper for protection from water, heat, and other damages.
- You can store the keys by fragmenting the piece (two or three) of paper and keeping at different places for more security.
How To Trade On Paper Wallet?
One question might be banging in your head while reading this guide to paper wallet i.e. how to trade on a paper wallet or with a piece of paper? Don’t worry and keep reading to find out the procedure. Now, let’s consider you want to sell some coins on any reputed crypto exchange. For that, you will need to install any renowned Bitcoin wallet on your mobile and have to use different devices to find the address of the online wallet of the exchange you had chosen to sell your coins. After logging into your exchange account and finding the QR code on the screen, just open up your paper wallet. Using the app on your mobile, just scan the QR code of your paper wallet (Either you have to select cold storage or import wallet on your mobile app to transfer coins from the paper wallet). Now you just need to write the amount you wanted to transfer to your mobile wallet and you are good to go to sell your coins. (Similarly, you can receive the coins too.!)
Summing Up
Thus, it can be concluded that crypto wallet is easily available, with the hassle-free installation process and highly secured method for storage of the coins. Although paper cold storage is considered as the safest option to protect your coins, you need to be cautious and make sure that no one can find your paper wallet. So, if you are interested in trading or investing in digital assets, you must choose your wallet carefully and as per this guide to paper wallet, choosing the paper wallet can turn out to be a good option!
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The crypto market is always known for its low barrier strategy to get an entry in it, which means you don’t need anything to become a trader. All you need is just an internet connection and a smartphone or computer. When you come into the crypto market you will learn new and creative techniques to be an expert in crypto trading but this might not happen all the time. Sometimes you may get failures one after one and this leads you and your confidence down. If you are getting failed with your investments and it keeps going on you might need to look for the reason of your failure and fix it as soon as possible. So, what are the mistakes you are making that’s landing you in failure all the time? Well, this article will help you find out the reasons why you are failing as a crypto trader. Here are 10 major reasons which make your investment void and ineffective.
Reasons Why You Are Failing As Crypto Trader
Prefer Paper Trading Initially
If you are interested in trading in cryptocurrency to become a professional trader, you have to follow a system based on professional guidance and trading experiences. This helps to maintain risk management but this cannot be done with actual money. You need to go with paper trade until you will be able to deal with cryptocurrency. This will keep you from mistakes. In cryptocurrency, there are always risks of losing your funds.
Not Able To Accept Loss
The new traders in the market always expect to gain continuously which makes them faint towards loss. Acceptance of loss is the most essential thing for a trader. This ability develops the skill of facing market risks with more efficiency and creates the ability to find out the mistakes. The newly entered traders should accept losses when they happen as they are always a part of the market.
Fail To Maintain Balance
The experienced and successful traders always keep a balanced portfolio to keep a hold on long term holds. In this financial market place, it is compulsory for any investor to maintain a portfolio instead of investing in just one coin. You can search for the best cryptocurrencies 2020 in the market and then invest in some of them. The reason being, it saves you from extensive losses as even if the price of one coin drops down, there would be some coin that will rise in price. After all, no matter how much you are experienced, you never know if the specific coin will prove to be beneficial. Moreover, all the experienced investors believe in investing their money in a couple of coins and not just one of them.
Trusting Fake Information Or News
When you step into crypto space, the first thing you need to avoid is trusting any news without verifying its source. As a new trader or beginner, you must be relying on news and other resources to keep up with the price and predictions of coins. But if you won’t verify the source of the information properly, you will take the wrong step in your investment and eventually taste failure. If you’ve been into crypto space for a while now, you must have suffered or fallen for this already. Mostly, these types of rumours initiate from social media platforms and take the face of news. So, keep your eyes wide open and learn how to find a reliable source of news to keep yourself at the safe side.
Think They Know Enough
One of the most common reasons why you are failing as a crypto trader is that you think you have enough knowledge about everything. You might be into the crypto space for a while and maybe know all the basics about crypto trading, but if you won’t keep up with particular recent trends, news and technologies, there’s no way you can survive the market. So, in order to keep up with the new techniques and technologies, you should never stop learning.
Investing Blindly In Any Coin
Don’t go on and invest in any coin according to its popularity or what other people say. So, why is your cryptocurrency failing? Maybe because you are not investing in the right one. You must research about the crypto coin or blockchain you are going to invest in beforehand. Learn everything possible about the technology behind it including the company’s plan of future, token release and the entire roadmap. If you are new to the industry, you should not invest right away and spend some time researching as much as possible about all the technologies and trading techniques in crypto space. If you are interested in crypto trading, learn about various types of trading, trading tools and strategies. And always start by investing a little and after that, you can slowly increase the investments monthly or quarterly as per your wish.
Using Margin Trading WIthout Experience
As a beginner or experienced trader, you should not use leverage trading. The reason being, you already don’t know much about crypto which is highly risky and then if you use margin trading you double your risks, so in order to be on the safe side, please avoid leverages. Its true leverages are used for doubling profits but if not used properly it can easily double your losses also. You can use margin trading once you get some experience in the sector and in the trading method.
Conclusion:
The difference between a good and a bad trader is just the factor of how long they survive the market. And the only way to learn to trade is to start trading and although you can know about the tricks and tactics used in trading by reading articles and guides, in order to learn them, you will need to use them practically. Even if you know the skills of trading, in order to be successful you will need an equal amount of dedication, patience and other such qualities.
Now that you are aware of the reasons why you are failing as a crypto trader, you can deal with it more wisely.
One of the best ways to practice trading is by using paper trading methods. In crypto space, you can use paper trading apps to practice crypto trading without actually investing your money. There are a couple of apps like cryptocompare.com, Bitmex, etc that offer paper trading services.
