A big challenge faced by cryptocurrency (cryptos) is security and confidentiality. The encrypted data string acting as a unit of currency is maintained by a peer to peer block chain type network. Most of the people all around the world are concerned about the factors including authentication of the transactions done by cryptocurrency. There are a few limitations that stop the success rate of cryptocurrencies. It is necessary to make and establish a standard for the users so that they can do quick decision making on the services they plan to use.
These block based time stamped transactions is quite complex, and it is definitely not a piece of cake for the hackers to crack it. The transactions are not based on entering a simple string that is your user name and a password associated to that rather it is a two-step process. Right after entering your credentials, you need to verify by entering an authentication code, attained by sending an SMS or even via calls to a user’s pre- set phone number. But of course these methods are not so much promising and it does not mean that the cryptos have become un-hackable. In the history, it has been observed that many several dollar hacks have effected many startups running on cryptos. Therefore, these invests done are a risky business. Few people are also of the believe that riskiest business choice is cryptocurrency. At the same time, these cryptocurrencies rule the market.
As an investor, a person must take into account few things, that include.
An investor must not simply go and throw all of his money in this business, rather they must take into consideration all of the possible cryptocurrency exchanges. Of course as a lay man and a researcher an investor can’t simply dig into all of the platforms but he can simply look for the reviews of other investors, before moving on.
The next important thing which an investor must know is how and where will he store his digital currency? Which digital wallet to choose? Since there are different types of wallets and every type has its own advantages and perks.
Being an investor, there is a golden rule of never to invest it all in one type of currency to be specific e.g. there is a user who invests all of the money on bitcoin. This is not the right way to make an investment rather, spreading investment and creating diversity must be the rule.
A person who is all set and ready to face the ups and downs must make an investment. There could be unexpected dramatic swings, so an investor must be ready to face them.
What is a cryptocurrency wallet?
The higher prices of cryptocurrencies always kept them in news. This marathon began in the year 2009, and from the first Release-Bitcoin, cryptocurrency has been a continuous success. The cryptocurrencies have taken the world by storm, and have been under the radiance for a long time now. They offer an alternative currency, and a secure, direct means of transactions which is accessible worldwide. The famous trade of cryptocurrency has some important requirements, digital wallet being one of them.
A cryptocurrency wallet acts just like a bank account for secure and convenient transactions by making an exchange among varying currencies. This bank account is used for making all the transactions by storing, receiving and at last sending the digital currency to the wallet account of another user. It is the wallet that is responsible to receive the coins from other party and store them, may even use them by sending coins to others. By doing this, a user can simply trade cryptocurrencies, either do shopping or store these cryptocurrencies in the wallet account as an asset and may use it later.
Each wallet account has a private key which act as secret codes, allowing the owner to access the coins. A user is not supposed to store the coins rather he needs to maintain private keys. Every crypto wallet is just an application, this could even be a device or a website that manages and keeps a track of the private keys for a user. This allows an instant exchange between cryptocurrencies using a personal interface most likely to be similar to an online bank account’s user interface.