Litcoin wallet – how to get started
Are you considering investing in Litecoin? Then you need a Litecoin wallet! Most of today’s…
Today, cryptocurrency is something everyone knows what it is. It is not certain that everyone has a relationship with it (eg that they use it themselves), but the probability is high that they have some idea of what it is about.
A few years ago, there was one concept in particular that most people were fascinated by, and that was the term Bitcoin . You probably know what we are referring to here, but Bitcoin is the most popular cryptocurrency on the market today.
However, it is not the case that absolutely everyone engages in cryptocurrency, and there are several reasons why this is the case. Some have nothing left over for this payment method, while others have left out because they are simply a little skeptical about how secure it is.
In this article, we will try to answer this question. So we need to take a closer look at how secure cryptocurrency actually is. In addition, we will give you some useful tips regarding what you can do yourself to further secure yourself in connection with cryptocurrency.
What is cryptocurrency?
Before we can take a closer look at the security of using cryptocurrency, we have to answer an important question. And the important question is: What is cryptocurrency?
In short, cryptocurrency is a means of payment. It was developed as an alternative to the traditional payment methods such as bank transfer, e-wallets, invoices and credit cards.
When you go to the store to shop, you probably have a credit card in your pocket. It can also be a debit card, which is a card that is directly linked to your account at the bank where you are a customer. You are there in person, and use the card to pay for you.
The credit or debit card is the opposite of cryptocurrency. While the payment card is something you carry with you physically, cryptocurrency is not a tangible means of payment. It is a form of digital currency , and the most common is to use this in transactions made via the Internet.
This is how cryptocurrency works
When you complete a transaction with cryptocurrency, it is not the case that your name is written in capital letters on the transaction.
This is what separates such a transaction from transactions that you make using, for example, a bank. In your regular bank, you will receive a unique KID number (or similar), in addition to the recipient seeing both your name and account number.
However, this is not how it works when you pay with cryptocurrency. Instead, you will be given different information, and it is as follows:
A public key to the crypto-wallet
A private key to the crypto wallet
A cryptocurrency address (which often serves as an abbreviation for your public key)
This is information that you have to take very good care of. Why this is so important we will take a closer look at below.[main] Is cryptocurrency safe?
There are thousands of cryptocurrencies , and many may think that security varies from cryptocurrency to cryptocurrency. But that’s not how it works. Not everyone is equally popular, but it has nothing to do with individual security.
It is really quite easy to answer this question when it comes to cryptocurrency. Using cryptocurrency can be safe, but it can also be insecure. It is you who decides how you want it to be.
Cryptocurrency and security work in exactly the same way as everything else and security. If you lose your debit card, it is suddenly no longer as secure. This is also how it works with cryptocurrency. It is safe unless the information goes astray.
Cryptocurrency and anonymity
Another question that often arises in connection with cryptocurrency is whether or not you are anonymous when completing a transaction.
“Cryptocurrency and anonymity” and “cryptocurrency and security” are two concepts that go hand in hand. Cryptocurrency and anonymity work in exactly the same way as cryptocurrency and security.
When you complete a transaction, it is the cryptocurrency address that will be the sender. And it goes without saying that the recipient of the money knows who you are. As long as you take good care of this information, you will be anonymous and the use of cryptocurrency will be secure.
How to store cryptocurrency securely
If you have invested in cryptocurrency, then it goes without saying that you want to keep it safe. But how do you really do that?
Cryptocurrency may seem quite complicated, but does not mean that there are all aspects of what it is. Storing your cryptocurrency securely is actually quite simple.
“Secure storage” of cryptocurrency naturally goes hand in hand with what we have already mentioned above. But one thing can not be said too often, so therefore we will go a little closer to it below.
Below we will take a closer look at which aspects it is important to have control over when you make sure that your cryptocurrency is stored in a good and safe way.
You must have a cryptocurrency wallet
First of all, you need to get a cryptocurrency wallet ( or a wallet ). This wallet will have the same function as a regular wallet that you keep in your trouser or jacket pocket. In addition to this, it also has a few more uses:
The cryptocurrency wallet allows you to receive cryptocurrency from a sender.
The Cryptocurrency Wallet allows you to send cryptocurrencies to a recipient.
The cryptocurrency wallet can be used to store cryptocurrencies that you have acquired or invested in.
The cryptocurrency wallet allows you to store your inventory of cryptocurrencies in a good and safe way.
However, what distinguishes the cryptocurrency wallet from a regular wallet is that the values in the cryptocurrency wallet are not tangible in the same way as the values in the regular wallet.
Like regular wallets, it is possible to choose between different wallets. We will take a closer look at which wallets you can choose from to store your cryptocurrency in a good and secure way.
Cryptocurrency wallets for desktops
The first option you have in connection with cryptocurrency wallets is cryptocurrency wallets for desktops. Another name for these cryptocurrency wallets is desktop cryptocurrency wallets.
Desktop cryptocurrencies work in the same way as other software that you download to your computer, such as Skype or Adobe Photoshop.
In other words, a desktop cryptocurrency wallet is a cryptocurrency wallet that you download to your device. By loading this type of cryptocurrency wallet, you will get a wallet that is both online and local on your computer. And it is very convenient!
Physical cryptocurrency wallets
However, it goes without saying that you prefer an online cryptocurrency wallet. Then you can instead invest in a physical cryptocurrency wallet, and here you will have two options to choose from.
One option is simply to print out your cryptocurrency wallet. You do this easily by printing the document on paper using a printer, and then storing them in a safe place. It can also be an advantage to print multiple copies and save them separately.
However, if you do not have access to a printer, but still want a physical cryptocurrency wallet, then you can get a hardware wallet. This wallet has a direct connection to your computer, so it can be considered completely local.
If one is to compare these two physical cryptocurrency wallets against each other, it is not to be underestimated that it is one of them that undoubtedly pulls the longest straw. And that is the option of printing the cryptocurrency wallet on paper.
Cryptocurrency wallets online
There are also cryptocurrency wallets online, ie online cryptocurrency wallets.
Just as a desktop wallet can be compared to Adobe Photoshop downloaded to your computer, an online wallet can be compared to your email account. For example, if you have an email account through Outlook or Gmail.
Both Outlook and Gmail work so that you log in to your e-mail account with the e-mail address itself and a password that you have set yourself.
This is a very convenient option in that it is web-based and thus you do not need to store anything on your computer. In addition, only you have access to this wallet, as long as you keep your login information to yourself.
Mobile cryptocurrency wallets
The last option you have in connection with cryptocurrency wallets is a mobile cryptocurrency wallet. In practice, this means that this is a cryptocurrency wallet that you download to your mobile phone, in the same way that you download an application.
A mobile cryptocurrency wallet is good to have, if you are a person who likes to have control of your inventory at all times.
Nevertheless, it should be said that this is the least secure version of cryptocurrency wallets. The reason for this is that this is a cryptocurrency wallet that is connected to the Internet at all times, which makes it very vulnerable in terms of hacking and the like.
It may be relevant with several cryptocurrency wallets
If you have many years of experience investing in cryptocurrencies, then you may have invested in different cryptocurrencies.
Of course, it is entirely up to you to decide how many different cryptocurrencies you want to invest in, but then there is one thing in particular you need to keep in mind. And it is that you have to have a unique cryptocurrency wallet for each and every cryptocurrency.
This is something your cryptocurrency wallet and your regular bank account have in common. It is therefore not the case that you can keep Norwegian kroner and Swedish kroner in one and the same bank account. Thus, you can not store Bitcoin and Altcoin in one cryptocurrency wallet.
In some cases, however, it is possible for you to store several cryptocurrencies in one and the same cryptocurrency wallet, but it depends on which technology the relevant cryptocurrency wallet is made up of.
If you own several cryptocurrencies, more wallets are probably needed. If you open an account in a marketplace, you will have everything gathered in one place.
The public and private key is important
Regardless of which cryptocurrency wallet you use, it will come with a key pair for each of them. The key pair is a public key and a private key, which we also took a closer look at later in this article.
In practice, this means that if you have two different cryptocurrency wallets, then you will have two key pairs. Two key pairs means that you have four different keys in total.
The key pair, which consists of the public key and the private key, go hand in hand with each other. It simply means that they belong together, because one will not work without the other.
The best way to store these keys is to memorize them so you can memorize them. It is very likely that you have done this in connection with the code for your bank card, and you should do the same with this. Writing them down somewhere is a very bad idea.
How to ensure a secure cryptocurrency wallet
It is entirely your responsibility to make sure that your cryptocurrency wallet is a good and safe place at all times.
However, there are many things you can do to make sure of this. Most things are about things at the level of detail, but it is usually the small details that make up the big differences.
Have control of the private key
The public key contains information that is visible to most people, so here it is your private key that is most important. You must have control over this at all times.
If this goes astray and you have not memorized the login information, then you have lost access to your cryptocurrency wallet for good.
Update the software
Most cryptocurrency wallets are made up of some software. In order for your wallet to be as secure as possible, it is important that you make sure that the software is up to date at all times.
The longer you wait to update the software when a new update is made available, the less secure your cryptocurrency wallet will be.
Are you considering investing in Litecoin? Then you need a Litecoin wallet! Most of today’s…
It is no secret that payment methods at the best british e casino have long…
Cryptocurrency has become very popular in recent years, because it is a form of payment…
Many people have opened their eyes to cryptocurrency in recent years, but it is not…
When you engage in cryptocurrency, you are introduced to new concepts just as they are.…
If you are actively involved in cryptocurrency , it goes without saying that you need…
Nobody ever wishes to be told, this item is counterfeit leave alone if it is…
Investing or trading in cryptocurrency of whatever kind is a risky affair. It does not…
You, me, and they are in the long process of trying to understand what possibilities…
In 2020, the EU’s Fifth Money Laundering Directive entered into force. In the directive, you…
Having more than one cryptocurrency wallet is something that any smart investor or trader should…
The safety of your transactions when using bitcoin is something not to be taken lightly.…
The crypto universe is an ever-evolving universe. This has led to it being a bit…
Cryptocurrency investment is fast becoming a household name, especially among fortune builders and ambitious risk…
Cryptocurrency is in the wind during the day, partly because many are considering investing in…
In Great Britain , anyone who wants to can buy cryptocurrency . Are you one…
In recent years, a possible ban on Bitcoin has been one of the topics that…
There are many good reasons to invest in cryptocurrency. One of the things that is…
Cryptocurrencies are digital currencies that are decentralized. In practice, this is something that makes the…
Cryptocurrency has always been a controversial topic – ever since bitcoin took the world by…
If you are going to buy cryptocurrency, then this can be done in different ways.…
Have you heard the term “trading” before? There are definitely good chances that you have…
The cryptocurrency not only gave us a whole new way of payment method. It also…
So you’ve been watching cryptocurrencies lately and wondering what the future will bring, no one…
If you are considering investing in cryptocurrency, it may be a little bit of you…