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Crypto Finance

CREATING A CRYPTOCURRENCY WALLET

Cryptocurrency wallet is a digital space for storing cryptocurrencies. Since cryptocurrencies are not visible, what a wallet helps its users achieve is the access funds registered to a public key. If a user transfer funds to another person in a cryptocurrency network, the funds will remain in the recipient’s public key. A user can only access this fund if he has the private key that corresponds to the public key where such funds stored. This is how a typical cryptocurrency wallet looks like.

Most exchanges offer online wallets that allow user store their cryptocurrencies without charging any fees. This way of storing cryptocurrency online is a hot wallet. Cold wallets are also wallets like hot wallets except that your address is not accessible online securing it properly from the risk of hackers. Creating a cold wallet means that you have your cryptocurrency balance in a printed form that shows your public and private key in a quick response code format for each key. Because you are trying to keep the information on your wallet as secure as possible, you would have to take extra care to ensure that you do not allow unauthorized access to your address by leaving traces online or on your computer. There are free web services like bitaddress.org and walletgenerator.net that allow you do this. These services use your web browser to only, to accomplish the task without transmitting data online making it as secures as the previous method. It is, however, important that you clear cached data and other information that could leave traces after this.

Many cryptocurrency users make use of hot wallet this may be a result of poor knowledge about wallets in general and the risk in using the hot wallets. Creating a hot wallet may be as easy as signing up on Facebook. Exchanges request for certain information depending on your location and provide you with an optional wallet to store your cryptocurrencies. If you consider your cryptocurrencies unsafe, you can decide to sign to an exclusive wallet service like jax or move it to a more secure online storage like what is on coinbase. Some wallets providers allow users store their cryptocurrencies in a hardware providing extra security for a fee. Some of these hardware wallets cost as much as $70. They include Ledger Nano, trezor, opendime etc.

Storing a wallet online only has the risk of attack from hackers on your wallet provider and exchange service. Hardware wallets may offer more security but this only comes with additional fees. The easiest and affordable option is cold offline storage. When you store cryptocurrencies offline, you can easily check the balance on your public address by providing your private key at blockchain.info. Although, you also have to know that using an offline wallet also has its cons. You are the complete protector of your cold wallet. If you allow the information on your wallet gets to an unauthorized or fraudulent user, you may lose your funds forever. You should also be careful with how you choose to keep your keys. For safety, consider a durable and lasting material. Creating a wallet is not so complex a process. The most important point is that your funds are securely stored.