NairaEx Blog Providing latest news and announcements related to the NairaEx website as well as the general cryptocurrency in Nigeria.

Ways to Store Your Cryptocurrency


Ways to Store Your Cryptocurrency

There are many popular ways to buy bitcoin and other cryptocurrency. The list is endless. It is important to make sure you do background research on the ways your crypto can be stored. As the demand for and popularity of cryptocurrencies increases, it becomes increasingly important to ensure your holdings are as safe as possible.

Store Your Bitcoin Safely

There are different types of wallets you may use, from software wallets to hardware wallets. Your choice of wallet defines your experience as a cryptocurrency user. It is important to take a significant amount of time to consider what wallet will optimize your experience as a holder of cryptocurrency.

Usually, the more user-friendly a wallet it, the fewer security features it has. Highly secure systems, typically require one to go through many technical steps to use them, which those who are not technically inclined may find to be too difficult to understand. This can result in a paradox whereby a user can actually lose their cryptocurrency due in part to the high amounts of steps which they do not have a solid grasp of.

Mobile penetration is at its highs in Africa so it comes as no surprise that mobile wallets are one of the most attractive ways of holding cryptocurrencies in the continent. They can easily be accessed with a few taps and give users a better sense of security than using wallets on shared desktops.

You can import mobile wallets onto a device. Cryptocurrency in such a wallet may only be accessed via the device the wallet is downloaded to. While they offer high levels of security, if compromised by malware and other cyber attacks, most devices can expose owners to cyber security risks.

Hardware wallets allow for transactions online but have the added benefit of safe offline storage. This is very secure in that it becomes significantly harder for hackers and malware to compromise one’s wallet.

Paper wallets provide considerably higher safety standards than many other types of wallets. There are various types of wallets based on paper. While it may seem odd at first to use a paper wallet, they can prove to be easy to use. Funds can be quickly transferred using a paper wallet. 

The Case of Online vs. Offline

It is prudent to save some amounts of cryptocurrency for online usage and practise offline storing of the bulk of your cryptocurrency. In such a case,if an electronic wallet is hacked, only a small percentage of your cryptocurrency will be stolen as compared to larger amount of cryptocurrency.

The hardware wallets of Trezor have several unique features such as a touch screen and bluetooth features. The wallet can be connected to a computer to make crypto-currency transactions. Trezor offers a recovery seed that may be used to access your cryptocurrency.

Desktop wallets can be downloaded on a computer, giving the user complete control of their private keys. This can allow users to easily access their cryptocurrency with confidence that it is under their control. However, if a computer is infected or hacked, their wallet may also be compromised,which could lead to the loss of their cryptocurrency.

Cryptocurrency Wallets and Nodes

Nodes are typically referred to as as clients. Parity and Go-ethereum (geth) can serve as nodes. They offer wallet capabilities (software that allows users to carry out blockchain transactions).

You can connect your Bitcoin wallet to a full node which will enable you to interact with the Bitcoin network . One can achieve significant control, security, and anonymity by maintaining their own node on a network.

You can also connect to an ethereum node with your wallet. An Ethereum node connects with the network of Ethereum. It helps maintain the network’s condition. Transfers and objects that are not done in line with regulations are not used.

There are various types of nodes that offer unique advantages and disadvantages. For example, a complete node has a copy of the entire blockchain, executing any mined transaction. These nodes claim enormous volumes of power and energy. Joining and synchronizing with a complete node also takes hours. Cloud services operating a complete node will cost $20 a month.

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By NairaEx
NairaEx Blog Providing latest news and announcements related to the NairaEx website as well as the general cryptocurrency in Nigeria.