Over the past few decades, digital “coin” currency has been of growing interest. It has been met with some confusion and skepticism but is on the rise as people are natural explorers and long for creative and practical new things. When Bitcoin made its arrival in the mid 2000’s, it was a game changer to say the least.
With the rapid expansion of cryptocurrency and its subsequent use, the way it is stored and transacted is growing increasingly important. The idea is simple enough, that people can just share currency just like they share other types of files. That’s essentially the process, but if you are interested in trying it out, there are a few things you must consider.
As with any investment, diversifying is recommended, but you should consult a professional advisor. Keeping your coins in several different companies is safer than storing everything all in one place. A crypto wallet is required in order to invest and comes in a few different forms.
Types of Crypto Wallets
There are several companies that can create an account for you, storing your keys or “wallet”, and the process is similar to using any online bank. You will want to be careful of your wallet choice in order to protect yourself and your investment. Hackers are abounding, making security as important as the transactions that are processed.
A hot wallet is one that offers instant payments and it operates online, directly connected. “Hot” transactions are more vulnerable and susceptible to unauthorized or fraudulent activity by criminals. If you value the quickness and you don’t store large amounts, this type of wallet can still be a viable.
The cold wallet is just what you might think – the opposite of the hot wallet. Keeping the information in an offline source is safer. There is also deep cold storage, that allows you to add coins, but to access them would require several steps of security. A hardware wallet is safe because the key for the transaction never leaves the wallet, leaving it unexposed. This is a type of physical storage. More information on wallets and the full explanations can be found here.
A Different Species of Wallet
An Ether wallet is another choice but operates differently than others. Etheruum is a network designed to execute programming scripts with compensation. The ethereum value is added by precision scripts, intercepting and blocking spam or intruders, resulting in authentic transactions.
Ethereum’s platform and network has only been in place for a short time, about 3 years, and has had an explosive response. It is designed more for more technically advanced users, and this leaves room for other platforms to make it more user-friendly to use. There are already programs designed to make the process of using Ether and Ethereum easier.
Remembering when online banking was relatively new, people were skeptical at first too. With the advancement of decentralized currency systems networks, the next phase of our digital life is leaping into reality at warp speed.