Some would think that, since there is so much going on in the world, and since there are such big technological breakthroughs and achievements, after something being popular and highly talked about, we would at least understand it a bit more. Of course, everything happens so fast, and we live such a fast-paced way of life that it’s nothing unusual how we simply don’t have time to get bothered about something that doesn’t affect our way of life and how we do things. But what about digital assets, as they are nothing new and, what’s even more important, with proper research and smart investment moves, it can really affect our wealthiness.
Yes, cryptocurrency still is a field that many consider unstable, and people look at this whole market as something that’s great, but not for them, which shouldn’t be the case. Luckily, things are changing, and today, more and more people are willing to dip their toes in the crypto pool by using many crypto services, direct investments, or actively participating and using renowned official cryptocurrency trading software like bitcoinscodepro.com/de.
How to start?
In order to begin, you first need to learn the basics, and because two main reasons. The first one is about having the right info, which means that you have the right tools to operate and get around in this market, and the other reason is about knowing where and how to start. Namely, knowing what blockchain technology is, the one behind this new revolutionary currency is not a must. But knowing which crypto wallet to choose and why having one is a must, well, that’s something every crypto enthusiast should know more about, especially if they plan to place some money in this market. That is also a reason why we will now focus more on this issue and try to explain why these wallets are something of a must and how to use them properly as well, so let’s start.
What is it?
First of all, we need to know what a crypto wallet is since it is the only way to understand how it works and whether we need one or not. You can find many complicated definitions online, but we will keep it simple and try to explain in a way that even the newbies in this field can understand easily. Regarding that, the best way to understand what it truly is and about its function is by looking at it as a regular type of wallet, where the only difference is that you use it to store cryptos instead of fiat money. It can also be compared to the bank account that stores cryptos, and no matter how you look at it, it is important to understand that it is the safest place for digital currencies. The whole point of crypto wallets is to keep your cryptos safe and secured from any possible threats and cyber-attacks and to store all the coins you have in one place, which makes the whole money management process much easier too.
The role of the keys
Every wallet used to store coins has two different keys, and if we want to make a trade or any type of exchange, we need to know both of them. When it comes to a public one, it is something that we give other people if we want them to send us some funds. It is similar to a bank account number, and one cannot transfer money without knowing it. On the other hand, a private key is something that only we should know, and we can look at it as a password or PIN code that no one except us should know about and see. We need it in order to access the cash in our wallets, and keeping it secret is a must because someone can easily misuse it and leave us without our funds in a matter of seconds.
How to choose the right one?
Now, when we know more about what they are, it is time to find out how to choose the best one, and in order to do that, you need to be familiar with all the options, and because of that, we will describe two different types of it.
The most popular type for most traders is the “hot wallet,” something you might have heard of before, and it’s because of its constant connection to the internet. Besides that, another key aspect is that it’s pretty easy to use one, which can sometimes be a determinative point on whether you will earn more or not. Now, this is because of the volatility, when the value of some coin might rise or fall rapidly, meaning that you would want much easier access to your funds so that you can make the right decision and gain profits. As for what they are and how they work, they are literally a program on the computer or an app on the phone, and one can access them at every moment and make a transaction in just a few seconds. They are fast and, thanks to different layers of security, safe enough, and because of that, there is no need to worry that someone can easily hack them and steal all the money.
Another option you go with is the cold wallet which is great for those who do not want to trade their digital money that often and want to keep it safe. The main fact about these wallets is that they do not need Internet for their operation, and they can be compared to the USB stick that you can carry around or keep in some hidden place. Of course, in order to make a trade, a cold wallet needs to be connected to the Internet, but it can be disconnected right after that, which provides one extra layer of security. Cold wallets are best for those who want to invest in some coins and then wait for their value to rise and earn money that way.