Once you have bought/purchased cryptocurrency, you need to store it safely to secure your cryptocurrency from hacks or theft. Mostly, cryptocurrency is stored or saved in crypto wallets, which are physical devices or online software used to store and save the private keys to your cryptocurrencies securely. Some exchanges give wallet services, making it easy and fast for you to store and save directly through the platform. In this article, we can discuss How to store cryptocurrency? How to save Cryptocurrency?
There are two different wallet providers to select from. The first wallet is named “hot wallet” and the second wallet is named “cold wallet”.
Hot wallet storage: “Hot wallets” also known as “software wallets” indicate crypto storage that uses online software to secure the private keys to your cryptocurrency.
Cold wallet storage: Unlike hot wallets, cold wallets also known as “hardware wallets” expect offline electronic devices to securely store and save the private keys of your wallet.
Generally, cold charges fees, while hot wallets don’t charge fees.
What can you buy with cryptocurrency?
When cryptocurrency was first launched, Bitcoin was set to be common for daily transactions, making it possible to purchase everything from a cup of coffee to a computer or even big-ticket items like real estate or any other tickets. That hasn’t fully real and, while the number of businesses accepting cryptocurrencies is growing, large transactions involving it are unique. Even so, it is possible to purchase a huge variety of products from e-commerce websites using cryptocurrency.
Following are some examples:
Technology and e-commerce sites:
Different companies that sell tech products accept cryptocurrency on their websites. For example, “Overstock”, an e-commerce platform, was among the first platform to accept Bitcoin (a type of cryptocurrency. Shopify, Rakuten, and Home Depot also accept cryptocurrencies.
Luxury goods:
Some luxury traders accept cryptocurrency as a form of payment. For example, the online luxury brand “Bitdials” offers Rolex, Patek Philippe, and other high-quality watches in return for Bitcoin.
Insurance:
In April 2021, “Swiss insurer AXA” (an insurance company) announced that it had begun accepting Bitcoin as a form of payment for all its lines of insurance except life insurance due to regulatory issues of life insurance.
“Premier Shield Insurance”, which sells home and auto insurance policies in the United State, also accepts Bitcoin for payments.
If you want to spend cryptocurrency at a vendor that doesn’t accept cryptocurrency directly, you can use a cryptocurrency debit card, such as BitPay in the US.
Cryptocurrency fraud/Cryptocurrency scams
Unfortunately, cryptocurrency crime is increasing day by day. Here are some types of cryptocurrency scams:
Fake websites: Fake sites that feature fake proof and crypto jargon promising big, guaranteed returns, provided you keep investing.
Virtual Ponzi schemes: Cryptocurrency criminals sell non-existent opportunities to invest in digital currencies and create the image of big returns by paying off old investors with new investors’ money. One scam operation, “BitClub Network”, raised more than $699 million before its enforcers were indicted in 2019.
“Celebrity” endorsements: Scammers act online as billionaires or well-known names who promise investors to multiply their investment in a virtual currency but rather take what you send. These scammers have also messaging apps or chat rooms to start rumors where a famous businessperson is backing a different cryptocurrency. Once they have motivated investors to purchase and drive up the price, the scammers sell investors’ stakes, and the currency reduces in value.
Is cryptocurrency safe?
Cryptocurrencies are generally created using blockchain technology. Blockchain defines the way transactions are listed into “blocks” and “time-stamped”. It’s a quite complex, technical process, but the result is a digital ledger of cryptocurrency transactions that’s hard for hackers to damage.
In addition, most transactions require a two-factor verification process. For transactions, enter a username and password to start a transaction. After this, enter a verification code sent via text sms to your cell phone.
While it does not mean cryptocurrencies are un-hackable. Different high-dollar hacks have cost cryptocurrency start-ups massively.
Unlike government-backed money, the value and demand of virtual currencies are driven completely by supply and demand. This can create a wild stroke that produces important gains for investors or big losses.
Four steps to invest in cryptocurrency safely
According to investor reports, all investments carry risk, but some investors and financial experts consider cryptocurrency to be one of the riskier investment choices out there. If you are thinking to invest in cryptocurrencies, these tips/steps can help you make educated choices.
1-Research exchanges:
Before you invest in crypto, learn about complete cryptocurrency exchanges. It’s estimated by experts that there are over 500 exchanges to select from. Do your research, read reviews, and talk with more experienced investors and financial experts before investing in cryptocurrency.
2-Know how to store your digital currency:
If you purchase cryptocurrency, you have to store and save it. You can store and save your cryptocurrency on an exchange or in a digital wallet. There are different kinds of wallets, each wallet has its benefits, technical requirements, and security and fees. As with exchanges, you should examine your storage choices before investing in crypto.
3-Diversify your investments:
Diversification is key to any good investment method, and this pulls when you are investing in cryptocurrency. Don’t invest all your money in Bitcoin. There are thousands of different options, and it’s better to spread your investment across different currencies like Ethereum, Tether, Lite coin, Dogecoin etc.
4-Prepare for volatility:
The cryptocurrency market is highly unstable, so be prepared for the ups and downs in cryptocurrency. You will see impressive swings in currency prices.
One of the best and easy ways you can stay safe online is by using an antivirus. “Kaspersky Internet Security” (an internet security company) defends you from malware infections, spyware, and data theft and secures your online payments using bank-grade encryption.
