Cryptocurrency wallets: the Most frequently asked questions


Cryptocurrency wallets: the Most frequently asked questions

Cryptocurrency wallet is a program that allows you to send and receive cryptocurrency.

The wallet can be used for the simultaneous storage of several types of tokens and coins, but most of them have a limited number of options.

Wallets are used to store a secret key is a long hexadecimal code, known only to you and the wallet. To get access to funds, it is necessary that the secret key has gone to a public key.

Wallets are different. This can be a device that connects to the Internet only from time to time, to execute the transaction (the rest of the time it can be stored even in a Bank vault), and may be a simple sheet of paper with printed on it the key is one of the options “cold storage”.

But wallets services akin to a traditional banking application: access account can be obtained from different devices, and if you lose your phone or forget your password, you will be able to access the account.

How to make cryptocurrency wallet

First of all, think about how you want to use the wallet.

Via mobile phone? PC? By accessing a particular website or using a device that will store the keys without access to the Internet?

It is also important to keep in mind that some wallets do not work on all platforms.

Now we need to ensure that the chosen wallet supports you are interested in cryptocurrency and what it stands for known, trustworthy company.

Most manufacturers of purses offer step-by-step guide to using your application, and this process is not too different from the e-mail settings. Don’t forget to create a backup of the secret key and keep it in a safe place.

The risks of crypto

Several countries have already introduced laws restricting the use of cryptocurrencies other authorities warned that they will do so in the near future.

Bitcoin banned in Pakistan, Nepal, Algeria, Cambodia, and Bolivia, and to pay them illegally in Macedonia, Vietnam and Bangladesh.

Ecuador also banned the cryptocurrency, but it plans to launch its own.

Can a manufacturer steal your crypto cryptocurrency

Wallets supported by private companies, can be a great way to store cryptocurrency, but you must use them with caution.

Theoretically, the company could use trusted her secret keys and steal your money. In addition, it happened that users were unable to withdraw money from these purses.

You should choose well-known companies that use the latest technology to protect their customers. There are many options — read the reviews and learn the pros and cons of each provider, the only way to make an informed decision.

How to keep your cryptocurrency safe

Whenever possible, use cold storage, especially if you plan to keep your assets long — the hot store should be only if funds should be kept at hand.

Beware of malware, which can compromise the phone or the laptop.

If you choose a wallet service, you should carefully study the emails that come supposedly from the provider of the wallet — it may be a trick. In the present communication, usually using some kind of information known only to the provider. Phishing e-mail scams often mimic the logos and language of official companies to give you a false sense of security. Please note the email address, there may be small typos.

What if cryptocurrency does not come in a purse

It depends on how long it takes for a unit of transaction in a particular cryptocurrency.

Standard bitcoin — six confirmations before the transaction is finished; on average, it takes about an hour, but the time can vary depending on the network load.

Other cryptocurrencies may require more evidence, but that doesn’t necessarily mean that the transaction will be slower. For example, Ethereum takes 24 confirmation, but the transaction can be completed in a few minutes.

Could the cryptocurrency disappear with purse

Imagine: you have in the account had the means, and now they’re gone. Where is the money? It’s possible that your coins were transferred to cold storage.

Some wallet providers services do so to protect the security of the keys and clients ‘ assets, and when the user wants to perform a payment, the funds are transferred from cold storage to the desired billing address.

How to get new coins during the fork of blockchain

It’s possible, but not implemented in all wallets, and in addition, this procedure may not be instantaneous.

Usually the developers of such wallets analyze the forks and check the new chain on the subject of prior mining or other suspicious behavior. If nothing like this is revealed, it is possible that the wallet will maintain the fork, and then the clients who have the appropriate coins, will get a new asset.

Sometimes it happens quite quickly, for Example, Freewallet has released a Bitcoin wallet for Cash, two days after a fork of bitcoin, and users have received new coins — this provider supported the fork first.

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