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C05-How to Store Cryptocurrency

How to Store Cryptocurrency

Cryptocurrencies have become increasingly popular in the world economy in the last some years. These electronic currencies do not physically exist, you will never find coins or notes of a cryptocurrency.

Everything is managed through the digital network, computers, and the internet. The users themselves are part of the system, helping to perform all necessary operations. You need to have someplace to save your wealth.  Not like any other assets, you only need a program or a USB to store your million of the crypto coins that you can put in your pocket and can carry with you wherever you go.

Complete Guide to E-Wallets for Cryptocurrency

Since cryptocurrencies are only and exclusively digital, to use them it is necessary to create an electronic wallet. These wallets, so-called, will be useful for storing money and for transferring money from one user to another. There are different categories of wallets, which will be analyzed below. The most important thing to know is that the e-wallet is the most important tool for cryptocurrency handling and trading.

What is an E-Wallet

A wallet is a secure digital place used to store, send and receive different digital currencies. Most of the digital crypto coins have an official wallet and some recommended using a third-party wallet. In order to use any cryptocurrency, you need to use a cryptographic wallet.

Each e-wallet will have its own address consisting of letters and numbers. This will be used to receive money, just like the IBAN that everyone has. The address will have a different initial letter based on the reference cryptocurrency. Get more information visit yuanpaygroup

How They Operate

Using a wallet is quite simple, in fact, once opened, you can decide whether to send or receive money. Within your wallet, there will be two different keys: one public and the other private. The public key is used when receiving money. In fact, during a transaction, this key is sent to the sender. The private key, on the other hand, must never be disclosed to anyone.

To receive your currency, all you have to do is request a receipt address from the wallet to be provided to the sender. As for payments, you need to know a recipient’s receiving address. Before sending money, you must pay some kind of fee, which is essential for confirming the payment. Based on the chosen fee, payment confirmation can take place more or less quickly.

This mechanism occurs for most cryptocurrencies. Furthermore, every transaction, once carried out, is irreversible, so it is necessary to carefully check the amount and address of the recipient.

Properties of E-Wallet

All types of wallets allow you to send and receive money in cryptocurrencies and guarantee the user’s anonymity. In fact, to open an electronic wallet, you just need an email address. It will therefore not be necessary to enter sensitive data such as surname, social security number, date of birth, etc.

The wallet can be managed in different ways: through your PC, your smartphone, or through sites that offer this type of service. The wallet will then be customizable with different security methods. For example, you can set a password for opening the software. Or have a message sent with a different code for each use of the wallet or an email to check unwanted access.

What is Software E-Wallet

As mentioned above, there are numerous types of wallets, each with its own characteristics. The most used are portfolios that can be managed directly via PC. These must be installed on the computer hard disk and are usually protected with different passwords.

The user will have to independently manage the protection of the software, hiding it from prying eyes inside the PC folders. It is advisable to create several backup copies of the files, so as not to lose your capital in case of cancellation of the wallet. It can happen, it is possible that you no longer have access to your wallet, resulting in the loss of money inside it. 

What are the Hardware E-Wallet 

Thanks to small hardware, you can take your wallet anywhere. These devices allow high portability of your capital and, by connecting them to an electronic wallet, it will be possible to send and manage money.

These hardware wallets can also be connected to smartphone wallets and therefore be used anywhere. They are lightweight and it is extremely easy to carry, they considered more safe and secure than online or hot wallets because you only connect them to the internet when you have to send or receive your digital currency.

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Guest Author

Crypto Journalist and Editor of guest articles in CoinPedia. Also, Outreach & Partnerships Manager. Contact me: [email protected]

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