Investing in
cryptocurrencies directly is not as easy as you can imagine. In fact, the
lack of security is one of the big drawbacks that many investors have had to
take the plunge and buy any fashionable blockchain development companies.
Unlike a bank or broker,
an exchange (its equivalent in the world of cryptocurrencies)
is not responsible for the assets
that its clients have deposited. That is, if there is a theft or a
hack, and the exchange stops having our cryptocurrencies, we lose everything.
Therefore, if we want to
invest directly in cryptocurrencies, the most advisable thing is to use the
exchanges only to operate, and then put our cryptocurrencies
safely. That's where the famous wallets come in.
What is a wallet?
It
is a purse where we will store our cryptocurrencies. It
can be virtual or physical, and performs the same function as a piggy bank or
purse in our day to day.
For bitcoin, there
are many types of wallets.
What types of wallet are
there?
First of all, two major
distinctions are made: hot and
cold.
Cold
wallets are those that are disconnected from the network.
Therefore, there is no risk that a hacker steals our private key. In this
case, the problem may be losing them physically.
On the contrary, hot wallets are those that stay connected to
the network (it can be a PC, a mobile or from the browser itself).
If we specify more, we
have other derived typologies:
-
Wallets in the cloud or online
The
data is stored on the internet, so it is susceptible to being
attacked, as is the exchange. The good news is that they will be more
difficult to find.
-
Desktop or computer wallet
In this case, we install a program on the computer that
functions as a safe. Despite this, since the computer is connected
to the internet, it is a hot wallet.
-
Mobile wallet
In the age of apps, there
was no shortage of apps that covered this function. Obviously, it is a hot
wallet to have the mobile hyperconnected.
-
Paper wallet
Although it may seem
rudimentary, we can print our unique code, and on a single paper we could carry
thousands of bitcoins, equivalent to millions of euros. It would be like
carrying a check to the bearer or a super bill.
-
Hardware wallet
Devices or hardware are sold that are like a pendrive, which generate a
key that allows us to store cryptocurrencies through top block chain companies.
Why banks
are considered cryptocurrency
For a couple of years they
have started to join forces with other important market players, mainly banks
such as BBVA, Santander, Bank of America and many others.
More recently, they have
entered into a collaboration agreement with American Express to create a
Blockchain-based payment gateway, similar to the agreements their rivals
MasterCard and Visa have reached.
