The digital world is a technology world. Every work that is done manually is transferred into a digital way. As work changed in digital form. The currency that is used for payment of this work is also changed digitally. Everyone who has a smartphone, computer, laptop wants to transfer money by using their device. Cryptocurrency lunch in the market to help this type of person. Cryptocurrency is a digital currency. That is famous for its virtuality. There is no need for any bank locker to keep safe cryptocurrency. Because there is no physical shape of this currency exists. But, no one can deny its existence. It is present in the digital world. That you can access by using the internet. The internet connection is the first need to transfer cryptocurrency.
Cryptocurrency can be store in wallets. These wallets are like physical wallets. That is used to keep cash or card safe. Normally every person uses this type of wallet. Cryptocurrency is store in these wallets with the help of private keys. These private keys can help owners to access their cryptocurrency. Different types of digital wallets are used for cryptocurrency Bitcoin Profit.
As you know the theft of physical currency exists. They steal the currency. This type of theft is also available in the digital market. They hack your digital cryptocurrency and steal your money. This type of thief is called hackers. They hack your digital wallet and steal your cryptocurrency. So, you need to save your digital currency from this type of thief.
There are different forms of digital cryptocurrency. The first form of cryptocurrency is bitcoin. But now more than 2000 cryptocurrencies available in the market. But the most popular is bitcoin. Almost every computer, laptop, or smartphone user here about bitcoins. But they don’t fully understand what it is? and where to use it. To help these people, I explain cryptocurrency. And different ways to store bitcoins.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency. That is secured by cryptography. And is used in works as a medium of exchange value. Cryptocurrency is used to secure and verify all transactions. It is also called entries in a distributed database, which is called the blockchain. This blockchain is managed by the computer network. That works as open-source software.
Why is a digital currency called cryptocurrency?
Cryptocurrency is used encryption to verify every transaction. It means there are advanced coding techniques used to store transfer cryptocurrency. Cryptocurrency can be store by people in digital wallets. The main goal to introduce cryptocurrency is to provide a secure and safe digital currency.
How much cryptocurrency is secured?
Cryptocurrency developer is using blockchain techniques to store or transfer currency. They record every transaction in the form of a block. Blockchain stores the transaction block and stamped time. It is a complex process. But in the presence of hackers, it is the safest method to transfer bitcoins.
Bitcoins or any other cryptocurrency are also used as a two-factor authentication process. In the first factor, the user needs to enter a username or password to start a transaction. No matter transaction is big or small. Then the authentication code sends via SMS to the user. That they receive on a personal cell phone. After entering this code the process of transferring bitcoins is completely executed.
Safest ways to store Bitcoins
- Hot Wallet
- Cold Wallet
- Physical Coins
- Security Precautions
- Software Updates
The hot wallet is also called an online wallet. The hot wallet is useable when you have an internet connection on any device. When you store any bitcoin in your hot/ online wallet. It generates some private keys. Every bitcoin is only accessible with its private keys. If you forget or delete your private keys, you can’t even access your bitcoins. It means no private key there is no money for the owner.
But the hot wallet is too much risky. Because it stores your bitcoin on the internet. That can give a chance to hacker to hack your bitcoins. If you use high security for your hot wallet, it may save your small transactions. But if you use the hot wallet to transfer a high amount. It becomes an open invitation for the hacker. That invite them to hack hot wallets and stole your currency.
But, only a hacker is not an issue for cryptocurrency. When you store cryptocurrency it gives you some private keys. If you lost your private keys, you lost your money. The simple funda is that ‘Not your keys, not your coins’. Cryptocurrency does not provide any SIPC or FDIC insurance. So, there is no chance to recover your amount.
You can say a cold wallet is an offline wallet. It is considered a secure wallet. That is used to store user addresses or private keys. This type of wallet can store user data on something that cannot be accessible on the internet. It is a more secure form of wallet. Different types of cold wallets are used to store cryptocurrency. Like paper wallets or hardware wallets. These two types of cold wallets are used most. The cold wallet is considered and use the most to store bitcoin or other types of cryptocurrencies.
I hope you can understand what is cryptocurrency. And how much bitcoin is famous in the digital currency world. But, here the new fact is that bitcoins are also available in the form of physical coins. These physical coins will have a tamper-proof sticker. That covers the predetermined amount of bitcoin. If you want to purchase bitcoin in the form of physical coins. Then you need to bear the manufacture and shipping cost of these coins. Because these coins are only manufactured according to customer demand.
Now, you can understand if you lose your private keys. What happens to your money. So, you understand the importance of private keys. There is no way to get money if you lost private keys. But there are many ways to keep safe your private keys.
I prefer you to get a backup of your entire bitcoin wallet. It will help you in case of computer failure or any other reason to lost keys. Make sure to backup all wallet.dat files and then store them in a safe place.
To higher the security level of your wallet. You need to make sure you are using up-to-date software. If your software is out of date, then your wallet is easy to hack. So keep updated on your software. It will help to to keep safe your wallet with the latest security fixes and protocols.
Multi-signature is a concept of transaction that adds multiple people. If you want to transfer any amount of bitcoin, you must need the signature of all your group. That is involved in your transaction. This practice can save you from hackers. Because it is typically difficult for any hacker to get all person’s signatures.
I hope you will understand not only buy bitcoins is important. You must need to save your bitcoins currency from hackers. If you want to keep safe your bitcoins, then use all the safety tips given above. Use a cold wallet is a best practice. And also create a backup of every wallet. It will help to keep safe you from hackers and computer issues. I hope this article is helpful for you and easy to understand. If you have any problems or questions about this topic, please ask them in the comment section.
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