Know The Right Way To Store Your Crypto! | Coinscapture

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Know The Right Way To Store Your Crypto
Coinscapture
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https//coinscapture.com/blog/know-the-right-way-t
o-store-your-crypto

• Before you start cryptocurrency trading on an
  exchange or purchase it from a broker it is
  necessary to know about digital wallets for
  storing cryptos securely.
• The most common issue faced is discovering the
  right digital wallet.
• This article will serve as a quick guide for
  selection.
• What is a cryptocurrency wallet?
• A cryptocurrency wallet is a place where the
  encrypted passwords (private and public keys) of
  the coins are stored. In simpler terms, it is a
  secure digital wallet used to store, send and
  receive digital currency.
• And it works exactly the same way as your
  physical wallet works. The only difference is the
  cryptocurrency wallets are entirely digitized
  into coding and used to store anything from
  cryptocurrency to information.
• Some of the wallets store only a specific coin,
  whereas some can store more than one.

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• How does a P2P exchange work?
• P2P is different. These exchanges act more like a
  match-maker, matching the buyer and seller
  instead of initiating the trade right away. The
  matching is done on the basis of the price and
  what type of payment is accepted by the buyer or
  seller.
• After matching, if the buyer gets convinced with
  the sellers offer. The buyer has to send a trade
  request and if the seller accepts, the trade is
  initiated and the cryptocurrency is locked in
  escrow.
• Both traders communicate mutually and complete
  the trade. Once the payment is done, the locked
  cryptocurrency is released from the escrow and
  deposited in the buyers account.
• This was a small summary of working. Before
  selecting, please go through the following points
  that can ease the pain of selection.
• The exchange should allow users to control their
  crypto funds.
• Should have up-to-date security.
• They should not be vulnerable to the government
  for enforcement of administrative limitations.
• The operations must occur at a very cheaper rate.

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• What are the elements of a digital wallet?
• The two most important elements of these wallets
  are  private keys and a public addresses. The
  access to the users wallet is given by the
  private key and thus, if it falls in the wrong
  hands, its likely that the funds in the wallet
  may disappear forever. Whereas the public address
  is given to the other traders on the network for
  receiving funds.
• Types of wallets
• There are five different of digital wallets
  available- online, mobile, desktop, hardware and
  paper.
• Mobile wallet - A wallet that runs through a
  smartphone app. All you need to do is download
  the app and create an account. Mobile wallets are
  very handy, as they can be used anywhere. The
  only risk associated is losing your assets if
  your phone breaks down or encounters a security
  breach.  
• Online wallet - A web-based wallet is an online
  wallet. They run on the cloud. This type of
  wallet requires just an internet connection and
  can be accessed by multiple devices. The online
  wallet should always be given an extra layer of
  protection as they are very easy to be
  compromised.  

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• Desktop wallet - These wallets are downloaded to
  a PC or laptop and are accessible after
  installation. They are very safe as compared to
  online wallets. However, if your laptop or
  computer is affected by the virus, hacked or
  external damage, there is a chance to lose all
  your funds.
• Hardware wallet - Hardware wallets are considered
  as the safest, yet more expensive. Because they
  store private keys on the USB drive. They
  facilitate transactions online, but they provide
  storage offline which enhances the security of
  the private keys.
• Paper wallet - Paper wallets are the safest to
  store assets as compared to all the available
  wallets. A paper wallet is a physical duplicate
  of your created public and private keys or
  mnemonic seed or it can even refer to a printed
  sheet of paper. You can send assets by exchanging
  the cash to wallet's public address and you
  withdraw or send by entering your private keys or
  by scanning the QR code on the paper wallet.

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• Multi-signature wallet - Multi-signature refers
  requiring of more than one key to authorize the
  transaction. This technology adds up an
  extra-layer to all the digital assets stored.
  Lets understand with an example. If you have
  configured your multi-sig wallet for 4-of-6
  authorized. So, to make a valid transaction, 4
  out of 6 authorizers signs will be required.   
• Digital wallet security
• When it comes to security, it is necessary to
  understand the following aspects
• Hot wallets are connected to the internet. They
  use private keys on behalf of users. These are
  all online and desktop wallets. Hot wallets are
  more prone to hacking, possible regulation or
  other technical vulnerabilities.
• The cold wallet refers to a wallet that is not
  connected to the internet. These are all hardware
  and paper wallet. When you use cold wallet all
  your assets are offline. Generally, they are more
  secure. However, it is always advisable not to
  store all your cryptocurrencies in the single hot
  or cold wallet.
• Tip- Always store the long term fund in cold
  storage and the ready to use in the hot wallet.
  Its your coins your way. The final decision is
  always yours. Just select wisely!!!