HOW TO BUY AND STORE CRYPTOCURRENCY WITH A DIGITAL WALLET

A lot of people have that money they always want to use to invest in cryptocurrency, like bitcoin, ethereum and all other altcoins. But they don’t have the knowledge on how to go about it or how to buy and sell it, that’s why I wrote this article to help you with that.

Before you put your money into cryptocurrency you have to know things about investing in cryptocurrency and if you don’t know click here.

To buy, store and sell bitcoin or any other cryptocurrency, you need to have a cryptocurrency or digital wallet.

WHAT IS A DIGITAL WALLET

A digital wallet is software programmed to store public and private keys, which also interacts with various blockchains to help users buy, sell and keep an eye on their balance. Like I said to buy, sell or make any transaction with cryptocurrency, you need to have a digital wallet.

HOW DOES DIGITAL WALLET WORK?

A lot of people use digital wallets and when I say a lot of people I mean MILLIONS of people make use of digital wallets, but only few understands how it’s being used.

Digital wallets do not really store cryptocurrency per say, unlike pocket wallets. Digital currencies do not have a particular location where they are stored, the transactions are just recorded by the block chain technology.

So you monitor, send and receive funds through your cryptocurrency wallet. When you buy bitcoin or any other cryptocurrency from a seller, the owner of the cryptocurrency has signed off the ownership of the coin to you. For you to be able to use the cryptocurrency and unlock your funds you need to make sure your private key matches the public key you used initially to buy the digital currency. If the public and private key matches you turn out to increase in funds, while the other seller turns out to decrease in funds. The transactions made while coins are being traded is stored in the blockchains technology because real coins are not traded, just record of the transaction made and a change in your cryptocurrency wallet balance.

What are the Types of cryptocurrency wallet we have?

We have different kinds of cryptocurrency wallets, which help in storing and accessing your cryptocurrency. They are divided into three main groups. 1) Software wallets, 2) hardware wallets, 3) Paper wallet.

SOFTWARE WALLET

Software wallets can be divided into 3 types

·       Mobile wallets. With the mobile wallet, you run your transactions through a mobile app downloaded on your phone, the setback with mobile wallet is low storage issues people face with their phones.

·       Desktop wallets. Here your wallets are installed on your laptop or pc. They are only accessible with the laptop you install them in, they have one of the highest level of security, only if your system crashes or is hacked that is when you’ll lose your wallet and also you have a chance of losing your funds.

·       Online wallets. These wallets are accessible in any location because they run through the cloud. They are more convenient and easy to use, they store4 your private key online. Your transactions are controlled by the company you chose to be your digital wallet. This is risky if the wallet you are using does not have a high level of security, that’s why as you go on with this article I’ll give you some high level online wallets you can use to buy and store your bitcoins or any other cryptocurrency.

HARDWARE WALLETS

Hardware wallets have also one of the safest ways to buy and store your bitcoin or any other digital currency. With this you can also make easy transactions, just plug in your hardware where your wallet is saved to an internet enabled computer, enter a pin, send your currency or buy your currency and then confirm Simple as that. It keeps your money offline which makes it invulnerable to hackers and online scammers.

PAPER WALLETS

Paper wallets are easy to use as the name implies a physical copy of your public and private keys. Using a paper wallet is pretty much straightforward. To do this just transfer funds from your software wallets to your public address or key on the paper print out given to you. Also, if you want to withdraw or spend from your cryptocurrency wallet, you need to transfer funds from your software wallet to your paper wallet. This is known as sweeping, you either do it manually or you do it by scanning your QR code.

ARE DIGITAL WALLETS SECURED?

Digital wallets are secure to an extent, matters the kind of wallet the user is using.

Online wallets has been said to be vulnerable to hackers and other cyber attacks, that’s why it’s good to have a good service provider like Biggico.

Apart from a particular service provider every wallet should be digitally intelligent and secure to use.

Using any wallet, if you lose your private key, you lose your wallet and if your wallet is hacked or scammed you are going to lose your wallet and your funds. So you have to have a good and trusted service provider for any kind of wallet you are using.

IT IS YOUR JOB ALSO TO TAKE PRECAUTIONS IN WHATEVER YOU DO!!!!!

The first step of precaution you have to take is backing up your WALLET.

The second step is KEEPING YOUR SOFTWARE UP TO DATE. Remember to always keep your wallet up to date so you’ll have the latest security enhancement for your wallet.

Another Precaution you should take is HAVING A VERY COMPLEX PASSWORD. Having a very complex private key is a very good way to keep your wallet secured, always make sure your private key is long and very complex in case of scammers and other cyber attacks.

MULTI-CURRENCY OR SINGLE DIGITAL CURRENCY USE

Bitcoin is the most popular cryptocurrency and also a well known one, but other cryptocurrencies known as altcoins are now coming up and investing in them is really wise and also reduces risk. You can read about risk management here.

If you want to invest in several cryptocurrency, which I’ll suggest to every user to do, you don’t need to open several wallets to do so, you can now do it with just one wallet.

IS THERE ANY FEE FOR TRANSACTION IN CRYPTOCURRENCY

The answer to this question is a bit not straight forward.

The transaction fees are tiny charges unlike that charged by banks. Like some don’t even use any charge fee. Another funny thing is, in some cases you can set your own fee. But if you choose a low fee, your transaction will amount to low priority and it might take hours or days to make just one transaction.

If you want your transaction done hastily, you’ll have to increase the transaction fee.

NO MATTER THE KIND OF WALLET YOU USE TRANSACTION FEE SHOULDN’T BE YOUR PROBLEM, BECAUSE YOU’RE JUS PAYING A LITTLE FRAGMENT NOT EVEN WORTH IT FROM YOUR FUNDS, OR YOU CAN CHOOSE YOUR OWN FEE OR NO EVEN FEE AT ALL, IT’S AN IMPROVEMENT THAN WHAT THEY DO IN THE PAST.

ARE CRYPTOCURRENCY WALLETS ANONYMOUS?

Sometimes they are but not really, wallets aren’t tied to the user’s identity, but all transactions are stored publicly in the block chain technology. There are ways to make your anonymity easier but it has downsides also in it.

WHICH CRYPTOCURRENCY WALLET IS BEST TO USE?

One of the most pondering questions in the heart of those that want to invest in cryptocurrency is here.

NEED TO KNOW ABOUT GOOD CRYPTOCURRENCY WALLETS.

·       If you need a digital wallet for daily use and a holding digital currency.

·       Do you want to reduce risk and use several currencies with one wallet?

·       Do you need a wallet you can use both at home and a mobile one.

·       Assess these wallets and see the one useful for you.

Below are good cryptocurrency wallets I will recommend to anybody.

AVATRADE

Avatrade is an online wallet and can also be downloaded on your mobile phone, through the app store or ios.

BitcoinProfit

Bitcoin profit Is also a good wallet to use, as the teach users to maximize profit and minimize risk, you can check it out.

COINBASE

Coinbase is not only popular, but also it’s of the best wallet in terms of security and multi use. Sign up and start using.

CEX.IO

Mobile and online wallet good for use, great wallet also. They refund your money if you are not happy with their services.

BITBOND

The thing about bitbond is they actually give loans to their investors and also they have high and quality security services.

The first thing to do is to Sign up to one of those Platforms there, When you're ready Fund it, Get the best for your investment.

These are one of the best wallets you can see out there, sign up, fund your account, and I wish you the best in your journey with investing in Cryptocurrencies.

Hope this article helped you.