Last Updated on Aug 31, 2021 by James W
The digital coins may be exchanged for fiat money through crypto-wallets.
ALL STARTS WITH AN ELECTRONIC WALLET
Making money on cryptocurrency begins with choosing a storage. The digital asset industry still has a semi-legal status in most countries, so there are extremely many scammers here. Loss of coins due to a hacker attack and a wallet breach is the main risk for all cryptocurrency investors. There are several types of storage, each of which has its own advantages and disadvantages.
- DESKTOP WALLETS
According to the experts, storing cryptocurrency on a computer’s hard drive is the most reliable method. The volume of the hard drive is enough to store a chain of blocks, and the system unit can be connected to the Internet only when a transaction is required. The likelihood of cracking is minimized as it is a cold storage type. There are also plenty of verified wallets. You can not only store but also exchange Bitcoin with BitMarket Network Client.
Bitmarket is an international platform for conducting transactions, buying and exchanging bitcoins with minimal fees. This blockchain wallet is supported on Windows, Linux, Mac OS X. It’s multi-currency allows to store not only Bitcoin, but also Bitcoin Cash, Litecoin, Ethereum and Tether. Thanks to its two-factor authentication, a one-time code will be sent to your phone during the entry to the wallet. So, the possibility of hacking your personal password is minimized.
Now the BitMarket project needs professionals who could speed up the work on the wallet. The developers have provided an opportunity for anyone who wants to check the service through an open source.
- MOBILE WALLETS
To store cryptocurrency on a tablet or smartphone, you need to download and install a special mobile application. The main advantage of such storage is practicality and convenience. The phone is always at hand, so you can buy or sell Bitcoin at any time, reacting to the slightest changes in the course.
But, as the experts note, the disadvantages of mobile applications are much more. First, such programs have limited functionality. Secondly, one entry in the Bitcoin Blockchain can weigh more than 1 GB. However, this drawback is partially compensated by the SPV technology – a simplified payment version.
The smartphone or tablet cannot authenticate the chain on its own. Therefore, information from third-party services is used, which makes mobile devices more vulnerable. Connecting the phone to the Internet is a potential threat, and its failure will lead to a complete loss of access to the cryptocurrency wallet.
- INTERNET WALLETS
You can store cryptocurrency on all popular exchanges. There are also Internet wallets that support instant exchange of cryptocurrency for fiat money. You can set up mandatory confirmation of transactions by entering a special PIN or using the Google Authenticator application, which allows you to increase the initial level of protection. Online services are suitable for storing small amounts, for example, traders who regularly enter into speculative transactions.
This is another kind of cold storage. A hardware wallet can be made from a regular USB stick. To conduct a transaction, you just need to connect it to a computer or laptop with an Internet connection.
HOW TO AVOID SALES ERRORS?
The coin transfer procedure is the most vulnerable stage in the sale of bitcoins and other coins. There are viruses and spyware that monitor changes in the clipboard and change wallet addresses. Therefore, there is a possibility that the cryptocurrency will eventually be sent to scammers. Therefore, it is better not to copy the addresses, but to scan them through the QR code. It contains the address of the wallet to which the digital coins must be sent. Their number is recorded automatically after scanning the code. This method is good because the probability of making a mistake is minimised.