Armory FAQ

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to Bitcoin [link] [comments]

Cold Storage

What Is Cold Storage?
Cold storage is an offline wallet provided for storing bitcoins. With cold storage, is stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to.

Cold Storage Explained

When a checking, savings, account with a traditional bank has been compromised, the bank is able to refund the lost or stolen money back to the account holder. However, if your account or wallet has been compromised and your bitcoins stolen, the owner would be unable to recover his coins. Hence, the need for a safe and secure medium of storage
Stores the private keys of a bitcoin owner. The private key given to any bitcoin user is a unique string of alphanumeric characters required to access the user’s address. The address is the user’s unique ID that is required to make transactions and receive bitcoins from a sender. Two people making a transaction with bitcoin, where one is a seller and the other a buyer, will have to share their addresses with each other in order to complete the transaction. The buyer of the commodity or service sends the required number of bitcoins to the seller’s divulged address as payment, and the verifies the validity of the transaction and confirms that the buyer or sender really has those funds to send. Once the payment has been delivered to the address, the seller or receiver can only access the funds through his or her private key. It is, therefore, imperative for private keys to be kept secure because if stolen, the user’s bitcoins or altcoins could be unlocked and accessed from the address without authorization.

Protection From Theft

Private keys stored on a wallet connected to the internet are vulnerable to network-based theft. These wallets are known as hot wallets. With a hot wallet, all the functions required to complete a transaction are made from a single online device. The wallet generates and stores private keys; digitally signs transactions using private keys; and broadcasts the signed transaction to the network. The problem is that once the signed transactions have been broadcasted online, an attacker crawling the networks may become privy to the private key which was used to sign the transaction.
Cold storage resolves this issue by signing the transaction with the private keys in an offline environment. Any transaction initiated online is temporarily transferred to an offline wallet kept on a device such as a USB, CD, hard drive, paper, or offline computer, where it is then digitally signed before it is transmitted to the online network. Because the private key does not come into contact with a server connected online during the signing process, even if an online hacker comes across the transaction, s/he would not be able to access the private key used for it.
A paper wallet is simply a document that has the public and private keys written on it. The document is printed from the bitcoin paper wallet tool online with an offline printer. The paper wallet or document usually embedded on it so that it can easily be scanned and signed to make a transaction. The drawback to this medium is that if the paper is lost, rendered illegible or destroyed, the user will never be able to access his address where his funds are.
Another form of cold storage is a hardware wallet which uses an offline device or smartcard to generate private keys offline. The Ledger USB Wallet is an example of a hardware wallet that uses a smartcard to secure private keys. The device looks and functions like a USB, and a computer and chrome-based app are required to store the private keys offline. Like a paper wallet, it is essential to store this USB device and smartcard in a safe place, as any damage or loss could terminate access to the user’s bitcoins. Two other popular hardware wallets include TREZOR and KeepKey.
Finally, users looking for cold storage options can also opt for offline software wallets, which are quite similar to hardware wallets but are a more complex process for less technical users. An offline software wallet splits a wallet into two accessible platforms – an offline wallet which contains the private keys and an online wallet which has the public keys stored. The online wallet generates new unsigned transactions and sends the address of the user to the receiver or sender on the other end of the transaction. The unsigned transaction is moved to the offline wallet and signed with the private key. The signed transaction is then moved back to the online wallet which broadcasts it to the network. Because the offline wallet never gets connected to the internet, its stored private keys remain secure. Electrum and Armory are often quoted as the best offline software wallets in the cryptoeconomy.
Cryptocurrency users should ensure that the wallet of their choice is compatible with the coins they transact or trade in, as not all wallets support all cryptocurrencies.

Cold Storage: The Preferred Choice

Cold storage is the preferred storage method for everyone from long-term hodlers and Bitcoin proponents to institutional custody services like Ledger Vault — who holds millions of dollars in funds.Storage through a hardware wallet is the mechanism of choice because of the physical security layer afforded by decoupling the encrypted USB devices from the Internet. Malicious entities would need to have physical access to the device and subsequently bypass numerous protections like passphrases, PINs, and tampering authenticity signatures on the device. Not readily available with fiat currencies. Additionally, cold wallets are improvements over similar non-custodial wallets like software wallets . Despite a crowded field of competition, a few hardware wallet providers have stood out from the crowd — particularly Ledger. Ledger provides several of the most popular hardware devices. Depending on your storage, interface, and cost preferences, both are standards from which other cold wallet products can adequately be compared to give users context on the cold storage wallet market.
submitted by Avra11 to u/Avra11 [link] [comments]

Beginner's Guide to Trading Crypto. Part 11

Beginner's Guide to Trading Crypto. Part 11

Money Loves Security And So Do Cryptos: A Brief Guide Down Crypto Wallet Lane

Since time immemorial people have been keeping their money and valuables in safe places. Be they purses, clay pots full of coins buried in their backyards or treasure chests hidden in caves with piles of bones strewn around to keep unwanted visitors at bay, they means conceived for safekeeping hoarded valuables are just as creative as they are limitless.
The advent of cryptocurrencies as a new class of valuables and assets instantly spawned the need to keep them safe from the clammy hands of criminals. The logical solution was to develop wallets that would be used to keep cryptos safe. As a result, a multitude of wallets have emerged offering all kinds of added services to their users while remaining means of storage at heart.
There is a huge variety of wallets available: Coinomi, GreenAddress, Blockchain.info, Atomic, Exodus, Jaxx, Electrum, Copay, Bread, Airbitz, Armory, Mycelium, Blockchain Wallet and dozens of others, each offering their services to suit any taste.
https://preview.redd.it/tai1ax5q3u341.jpg?width=1200&format=pjpg&auto=webp&s=0a33622327c7e52eea02e77f7c843423e6aeba12

Types Of Wallets

There are several types of wallets available to users and everyone must decide for themselves which one suits their needs best.
Hardware wallets: These are the most secure and reliable wallets available, since they are not connected to the internet at all. Hardware wallets are like flash memory cards that store the user’s cryptocurrencies and access offline. A bright example is the Trezor wallet, which is deemed to be impermeable to hackers. Unless the user loses the device itself, it is safe to assume that the cryptos will stay on it indefinitely and no one will ever gain access to them.
Online, Web or Hot wallets: These are online services, or online wallets that offer to store the user’s cryptos online with direct access to the internet at any time. In essence, online wallets are online accounts in which users store their funds. The risks are very high, since exchange wallets are routinely being hacked and the cryptos stored therein stolen.
Desktop wallets: Desktop wallets are software programs that can be downloaded and installed on a PC and will only be accessible from the device they were downloaded onto. The risks are the same as with hot wallets and another added inconvenience is that loss of the device or loss of access to it means loss of all cryptos stored on it.
Mobile wallets: Mobile wallets are software programs that can be downloaded onto a mobile device, such as a phone or a tablet. There are wallets for Android and iPhones and all of them bear even greater risks than hot wallets. Since mobile devices are susceptible to theft and a variety of viruses, it is extremely risky to store cryptos on them. Though access to the cryptos without private keys is impossible, unless the user stores them on the device, loss of all cryptos with the mobile device is guaranteed.
Paper wallets: Paper wallets are offline cold storage for cryptocurrencies. This is by far the safest means of storing cryptos, which includes printing the public and private keys on a piece of paper and storing it in a safe place. The keys are printed in the form of QR codes for convenience. With paper wallets, the user has complete control over their funds and the only risk lies in losing the piece of paper with the keys.
Other types of wallets: Apart from the five main types of wallets, there were attempts at creating other types of services, such as atomic wallets using atomic swap technology and even combinations of mobile/hot/cold wallets. Despite limited success, hybrids models of wallets did not become popular.

Main Pros And Cons

When looking at wallets and their main advantages and disadvantages, it is easiest to speak of the division between cold and hot wallets.
When speaking of cold wallets, such as the Trezor Bitcoin wallet and Ledger Nano S or X, the same issue will be observed, and that is the fact that such wallets can be physically lost. Though anyone who ever finds them will never be able to gain access to the stored cryptos without the private keys (unless they are pasted on the device), loss of all cryptos on the device is guaranteed. In addition, cold wallets can be difficult to install and are inconvenient for frequent use.
https://preview.redd.it/ff2dukdx3u341.png?width=1021&format=png&auto=webp&s=f36cdc26b13f33433c5124f5e5a67c0e40f9dbf4
Hot wallets are far more susceptible to risk than their cold counterparts. Though hot storage is much faster and convenient with a wide variety of options from Coinbase to Blockchain.info, the risk of cybercrime runs high. Mobile or desktop storage is also considered to be hot storage and is also risky, if the device is damaged or destroyed.

Bitcoin Problems

Bitcoin, as the firstborn cryptocurrency, was born with a number of defects. One of the main problems of the king of cryptos is the yet unsolved scalability problem. This refers to the limit on the amount of transactions the Bitcoin network can process due to the limited size of and frequency of blocks in the Bitcoin blockchain.
Said problem poses some difficulties to all Bitcoin users and leads to what is known as backlog in the blockchain. The backlog leads to long queues of transactions in the system. With the average transaction time in the Bitcoin blockchain being around 7 transactions per second and the theoretical maximum standing at 27, it is not difficult to understand how long users of the blockchain have to wait for their transactions to pass in times of heightened demand – the time is in the hours and sometimes even days.

Bitcoin Wallets Review

Since Bitcoin is the most popular cryptocurrency on the market, it is logical to judge wallets by their support of the first cryptocurrency. As such, the following will be a brief review of some of the best and most popular Bitcoin wallets on the market.
Online Bitcoin Wallets
Online or web wallets are the most popular ones out there and the best Bitcoin wallet overall is widely considered to be Blockchain.info, which is easily accessible and convenient for everyday use with good security. As an anonymous Bitcoin wallet, Coinbase follows in the lead with its ability to store a multitude of various coins, but with the same security risks that are inherent to all hot wallets.
Android Bitcoin Wallets
Android is the most popular mobile system in the world and plays host to a number of good mobile wallets. The best Android Bitcoin wallet is widely considered to be the Electrum Bitcoin wallet with its excellent reputation, good security and convenience. Though Electrum has some occasional glitches, they are never critical. Another excellent wallet for Android is the Coinomi wallet with its support for a wide variety of cryptos and excellent user support, which even allows for restore options using special phrases. Coinomi has its issues as well, such as occasional exchange glitches, but the many pros outweigh the cons.
Bitcoin Hardware Wallets
The undisputed leaders as the best hardware wallets for Bitcoin are Ledger Nano X and S, Trezor T and Trezor One, and Keepkey. Bitcoin hardware wallets are comparable in their security, accessibility and usability. The difference is mainly in the price, which ranges from $165 for Trzeor T to $59 for the Ledger Nano S model. In fact, the Ledger Bitcoin wallet is often called the king of hardware wallets. The KeepKey Bitcoin wallet is the in the top three hardware wallets as a convenient and stylish device. Though KeepKey supports over 40 assets, it still lacks coin support.
Bitcoin Wallets For iPhone
iPhone’s iOS system is the second most popular for mobile devices in the world and has support for some good wallets as well. The best iOS Bitcoin wallet for iPhone is considered to be the Abra software, which offers credit card support for topping up crypto balances and a good user interface, which is even more oriented at exchanges. The next software is Edge, formerly known as Airbitz. The Edge wallet is best known for high security and good user-friendliness along with multi-currency support.
Bitcoin Wallets For Windows
Bitcoin wallets for PC are very popular and Windows is leading the way with some excellent offers for wallets. Atomic is by far the most advanced and the best option for Windows users as it offers Atomic swaps technology as its basis. The application offers a wide variety of operations and supports over 300 cryptocurrencies. Exodus is the second most popular choice as a desktop only wallet with support for Bitcoin and many other altcoins. Exodus offers its users a good interface and it is free for use.
Bitcoin Wallets For Mac
Since Atomic and Exodus are cross-platform wallets, they can be used on Windows and Mac. Apart from them, there are also Jaxx and Electrum, which can be used on Mac. Jaxx is a multi-currency wallet with support for around 40 cryptos and has a PIN feature. In addition, Jaxx is free for use. Electrum is one of the oldest desktop wallets and is a lightweight wallet that does not require the full blockchain to operate, meaning less storage needed for its operation. The wallet requires a PIN and is essentially a desktop bank with good security and usability. Electrum is also a Bitcoin wallet for iPad, since it can be used on mobile platforms.
Bitcoin Paper Wallet
Since storing cryptos online on exchange or hot wallets or even on devices is risky, it is oftentimes more convenient to use a simple printer to print out the keys and store them. BitAddress offers a convenient and easy to use, step by step guide to creating a paper wallet with the added benefit of sleeping in peace, known that nothing and no one will ever threaten your Bitcoins.
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Checklist

When embarking on the journey of creating your first wallet, think well of which type to use. The type will depend on the priorities that stand before the user. If security is paramount, then paper or cold storage wallets are the go-to solution. If frequency of use is the name of the day, then hot wallets and their inherent risks are the best way to go.
The most frequent questions related to wallets are how to add money to a Bitcoin wallet and how to set up a Bitcoin wallet. Both questions have no single answer, as each wallet offers its own instructions on how to top up balances and how to set them up. Therefore it is recommended to study all instructions carefully prior to operation.
Either way, there is no silver bullet and some features will have to be sacrificed in deciding how to store cryptocurrencies. The one thing that is constant is the need to store Bitcoins and cryptos and make use of them.

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Originally posted on our blog.
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Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to CryptoCurrencies [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to BitcoinAUS [link] [comments]

5 Best Cryptocurrency Wallets with User-Owned Private Keys

5 Best Cryptocurrency Wallets with User-Owned Private Keys

https://preview.redd.it/sycppf5jrhk31.png?width=1000&format=png&auto=webp&s=f4e3415322fb12f29319fbd8c22fa90d14ffebbb
All cryptocurrency transactions are based on the control of two important numbers: public and private keys. Public keys facilitate the transfer of crypto; private keys, their receipt. These keys are stored and secured through digital wallets, the software through which users have access to their digital assets.
There are two main models of cryptocurrency wallets: those that don’t allow users to control their private keys and those that do. The first model of wallets host users’ private keys on a centralized server, which facilitates transactions. In the second model, users hold their own private keys and are able to send and receive tokens without the consent of a third party.
So just how important is it to directly control your private keys? We’ll answer that question today, and review some of the best wallet options that allow you to do that.

Private keys: What they are and why they matter

Private keys are randomly generated secret numbers that link a user to particular cryptocurrency assets. Coins can be transferred to other blockchains only by accessing a wallet’s private keys. For this reason, it is extremely important to keep private keys secure and confidential. Matt Miller, a Bloomberg TV host, demonstrated this lesson to the world when he briefly showed his private key QR code on-air and had his funds immediately stolen.
In one model of wallet, a third-party retains control of the private keys. This model is typically described as the crypto version of a bank. The user is the owner of the funds but relies on the wallet’s server to execute transactions. However, this comparison fails to recognize key dangers inherent in third-party management of crypto funds.
Crypto wallets, like bank accounts and any other internet-connected account, are at risk of being hacked. Unlike banks, however, crypto projects are not legally obligated to refund account holders their funds in the case of a security breach. For this reason, keeping funds in a wallet for which you don’t control the private keys is significantly riskier than storing fiat currency in a bank.
User-owned private key wallets offer a much stronger option in terms of security. No one has control over your funds except you. That means that if someone hacks the server hosting your wallet, your funds are secure. It also means that you can’t have your funds stolen if the wallet’s leadership “loses” the private keys (yes, that has happened).
Always remember that private keys unlock full access to digital funds. Opting for wallets with user-owned private keys ensures that you maintain control over your funds and do not rely on a third party to make transactions. Here, we picked out some of the most trusted solutions that allow full user-control over private keys.

Coin Wallet

Coin Wallet is an excellent solution that allows you to directly conduct blockchain transactions and access tokens. You can export your private keys, and the wallet does not have access or oversight over your operations within the software.
Coin Wallet is suited to the needs of both beginners and professional crypto users. It comes as free software with simple and streamlined interfaces in both mobile and desktop versions. The wallet supports any ERC20 and ERC223 tokens, including Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, EOS, Ripple, Stellar, and Ethereum.
Of all the wallets on the market, Coin Wallet offers one of the most exhaustive collections of coins. Currently, there are more than 20,000 supported cryptocurrencies. The app gets bonus points for convenience, providing two built-in exchanges: Changelly and ShapeShift.

Blockchain

In 2011, Blockchain wallet pioneered the niche of online wallets. It remains one of the market leaders in wallets offering user-controlled keys. Currently, the company has over 41M wallets and more than $200B in transactions have been made on it since its start.
The mobile app is available in multiple languages and offers a built-in exchange for fast trading. Interfaces are very easy to follow and intuitive. The major drawback of this veteran wallet is that it supports just 5 coins: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Stellar (XLM), and USD PAX (PAX).

Exodus

Exodus comes as a download for desktop or mobile. In addition to giving you control of your private keys, it also allows you to export them, as well. Plus, as an extra security measure, it never stores private keys on the server.
This wallet may not suit the needs of all users, as there is no web version and English is the only supported language.
The app lists 100+ crypto coins and offers ShapeShift as a built-in exchange.

Armory

Armory wallet is a great choice for users who want a simple storage option for their crypto assets. It offers some offline functionality, as well as free cold storage. It also lets you back up private keys (a QR code) on paper or create a multi-signature wallet. The latter option is particularly useful for businesses.
A major drawback of this wallet is that it is the least user-friendly option. Users need to have some basic knowledge encryption and software set-up. In addition, sending digital assets with Armory is less convenient than competitors and it doesn’t offer any built-in exchanges.

Bitcoin Core

Launched by the Bitcoin project, Bitcoin Core has a simple interface and is compatible with Mac, Linux, and Windows. It allows users to check the full node of Bitcoin transactions, i.e. download the entire blockchain. Therefore, it might take some time to download the full blockchain and set up your wallet.
A drawback of Bitcoin Core is that it’s large: you must have at least 200GB free disk space for this software, and system requirements constantly increase as the full Bitcoin network node grows.
As its name suggests, Bitcoin Core supports only Bitcoin. If you plan on trading and using only Bitcoin, this wallet is a great choice. Because you keep the full node on your computer, you don’t need any third parties to verify transactions. Sending or receiving coins here is very simple, and you are directly connected to the full Bitcoin network node. The fees are decided on by user votes.
submitted by GTE_IO to u/GTE_IO [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to ethtrader [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to BitcoinMarkets [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to btc [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to CryptoCurrencies [link] [comments]

What is a Cryptocurrency Wallet?

What is a Cryptocurrency Wallet?
Use this straightforward guide to learn what a cryptocurrency wallet is, how they work and discover which ones are the best on the market.
A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
How do they work?
Millions of people use cryptocurrency wallets, but there is considerable misunderstanding about how they work. Unlike traditional ‘pocket’ wallets, digital wallets don’t store currency. In fact, currencies don’t get stored in any single location or exist anywhere in any physical form. All that exists are records of transactions stored on the blockchain.
Cryptocurrency wallets are software programs that store your public and private keys and interface with various blockchain so users can monitor their balance, send money and conduct other operations. When a person sends you bitcoins or any other type of digital currency, they are essentially signing off ownership of the coins to your wallet’s address. To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to. If public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly. There is no actual exchange of real coins. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your cryptocurrency wallet.
What are the different types of Cryptocurrencywallets?
There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.
Are Cryptocurrency wallets secure?
Wallets are secure to varying degrees. The level of security depends on the type of wallet you use (desktop, mobile, online, paper, hardware) and the service provider. A web server is an intrinsically riskier environment to keep your currency compared to offline. Online wallets can expose users to possible vulnerabilities in the wallet platform which can be exploited by hackers to steal your funds. Offline wallets, on the other hand, cannot be hacked because they simply aren’t connected to an online network and don’t rely on a third party for security.
Although online wallets have proven the most vulnerable and prone to hacking attacks, diligent security precautions need to be implemented and followed when using any wallet. Remember that no matter which wallet you use, losing your private keys will lead you to lose your money. Similarly, if your wallet gets hacked, or you send money to a scammer, there is no way to reclaim lost currency or reverse the transaction. You must take precautions and be very careful!
Although Bitcoin is by far the most well-known and popular digital currency, hundreds of newcryptocurrencies (referred to as altcoins) have emerged, each with distinctive ecosystems and infrastructure. If you’re interested in using a variety of cryptocurrencies, the good news is, you don’t need set up a separate wallet for each currency. Instead of using a cryptocurrency wallet that supports a single currency, it may be more convenient to set up a multi-currency wallet which enables you to use several currencies from the same wallet.
Are there any transaction fees?
There is no straightforward answer here.
In general, transaction fees are a tiny fraction of traditional bank fees. Sometimes fees need to be paid for certain types of transactions to network miners as a processing fee, while some transactions don’t have any fee at all. It’s also possible to set your own fee. As a guide, the median transaction size of 226 bytes would result in a fee of 18,080 satoshis or $0.12. In some cases, if you choose to set a low fee, your transaction may get low priority, and you might have to wait hours or even days for the transaction to get confirmed. If you need your transaction completed and confirmed promptly, then you might need to increase the amount you’re willing to pay. Whatever wallet you end up using, transaction fees are not something you should worry about. You will either pay minuscule transaction fees, choose your own fees or pay no fees at all. A definite improvement from the past!
Are cryptocurrency wallets anonymous?
Kind of, but not really. Wallets are pseudonymous. While wallets aren’t tied to the actual identity of a user, all transactions are stored publicly and permanently on the blockchain. Your name or personal street address won’t be there, but data like your wallet address could be traced to your identity in a number of ways. While there are efforts underway to make anonymity and privacy easier to achieve, there are obvious downsides to full anonymity. Check out the DarkWallet project that is looking to beef up privacy and anonymity through stealth addresses and coin mixing.
Which Cryptocurrency wallet is the best?
There is an ever-growing list of options. Before picking a wallet, you should, however, consider how you intend to use it.
Bread Wallet
Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email. The wallet can be downloaded from the App Store or Google Play. Bread Wallet offers a standalone client, so there is no server to use when sending or receiving bitcoins. That means users can access their money and are in full control of their funds at all times. Overall, Bread Wallet’s clean interface, lightweight design and commitment to continually improve security, make the application safe, fast and a pleasure to use for both beginners and experienced users alike.
Mycelium
Advanced users searching for a Bitcoin mobile digital wallet, should look no further than mycelium. The Mycelium mobile wallet allows iPhone and Android users to send and receive bitcoins and keep complete control over bitcoins. No third party can freeze or lose your funds! With enterprise-level security superior to most other apps and features like cold storage and encrypted PDF backups, an integrated QR-code scanner, a local trading marketplace and secure chat amongst others, you can understand why Mycelium has long been regarded as one of the best wallets on the market.
Exodus
Exodus is a relatively new and unknown digital wallet that is currently only available on the desktop. It enables the storage and trading of Bitcoin, Ether, Litecoins, Dogecoins and Dash through an incredibly easy to use, intuitive and beautiful interface. Exodus also offers a very simple guide to backup your wallet. One of the great things about Exodus is that it has a built-in shapeshift exchange that allows users to trade altcoins for bitcoins and vice versa without leaving the wallet.
Copay
Created by Bitpay, Copay is one of the best digital wallets on the market. If you’re looking for convenience, Copay is easily accessed through a user-friendly interface on desktop, mobile or online. One of the best things about Copay is that it’s a multi-signature wallet so friends or business partners can share funds. Overall, Copay has something for everyone. It’s simple enough for entry-level users but has plenty of additional geeky features that will impress more experienced players as well.
Jaxx
Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcoin wallet and user interface. Jaxx has been designed to deliver a smooth Bitcoin and Ethereum experience. It is available on a variety of platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android mobile & tablet, iOS mobile & tablet) and connects with websites through Firefox and Chrome extensions. Jaxx allows in wallet conversion between Bitcoin, Ether and DAO tokens via Shapeshift and the import of Ethereum paper wallets. With an array of features and the continual integration of new currencies, Jaxx is an excellent choice for those who require a multi-currency wallet.
Armory
Armory is an open source Bitcoin desktop wallet perfect for experienced users that place emphasis on security. Some of Armory’s features include cold storage, multi-signature transactions, one-time printable backups, multiple wallets interface, GPU-resistant wallet encryption, key importing, key sweeping and more. Although Armory takes a little while to understand and use to it’s full potential, it’s a great option for more tech-savvy bitcoiners looking to keep their funds safe and secure.
Trezor is a hardware Bitcoin wallet that is ideal for storing large amounts of bitcoins. Trezor cannot be infected by malware and never exposes your private keys which make it as safe as holding traditional paper money. Trezor is open source and transparent, with all technical decisions benefiting from wider community consultation. It’s easy to use, has an intuitive interface and is Windows, OS X and Linux friendly. One of the few downsides of the Trezor wallet is that it must be with you to send bitcoins. This, therefore, makes Trezor best for inactive savers, investors or people who want to keep large amounts of Bitcoin highly secure.
Ledger Nano
The Ledger Wallet Nano is a new hierarchical deterministic multisig hardware wallet for bitcoin users that aims to eliminate a number of attack vectors through the use of a second security layer. This tech-heavy description does not mean much to the average consumer, though, which is why I am going to explain it in plain language, describing what makes the Ledger Wallet Nano tick. In terms of hardware, the Ledger Wallet Nano is a compact USB device based on a smart card. It is roughly the size of a small flash drive, measuring 39 x 13 x 4mm (1.53 x 0.51 x 0.16in) and weighing in at just 5.9g.
Pros:
Cons:
Green Address
Green Address is a user-friendly Bitcoin wallet that’s an excellent choice for beginners. Green Address is accessible via desktop, online or mobile with apps available for Chrome, iOS, and Android. Features include multi-signature addresses & two-factor authentications for enhanced security, paper wallet backup, and instant transaction confirmation. A downside is that Green Address is required to approve all payments, so you do not have full control over your spending
Blockchain (dot) info
Blockchain is one of the most popular Bitcoin wallets. Accessing this wallet can be done from any browser or smartphone. Blockchain.info provides two different additional layers. For the browser version, users can enable two-factor authentication, while mobile users can activate a pin code requirement every time the wallet application is opened. Although your wallet will be stored online and all transactions will need to go through the company’s servers, Blockchain.info does not have access to your private keys. Overall, this is a well-established company that is trusted throughout the Bitcoin community and makes for a solid wallet to keep your currency.
submitted by Tokenberry to NewbieZone [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to bitcointrading [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to BitcoinDiscussion [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to CoinTelegraph [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to bitcoin_uncensored [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to CryptoCurrencyTrading [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to u/SwapSpace_co [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to bitcoin_uncensored [link] [comments]

Types of cryptocurrency wallets. Advantages and disadvantages

In order to increase the security level of your funds, you can use wallets. They have a higher level of protection in comparison with the exchanges. In this article, you will get to know about the advantages and disadvantages of wallets, get acquainted with their varieties and the most popular examples.

What is a digital wallet?

A digital wallet is a place to store your public and private keys. It consists of a private key and a public key (in our previous article you can learn more about what private and public keys are).

Hot and cold wallet

Cold wallets are a way to store funds offline. These include any tools that are not tied to the network. Cold storage eliminates the interaction of the wallet and the online network, which significantly reduces the likelihood of theft.
Advantages: Higher security. The possibility of offline storage.
Disadvantages: Poorly adapted for regular payments. May be lost with the carrier. Require backup.
Hot wallets are programs designed to store digital coins with a constant Internet connection which allows you to send cryptocurrencies anywhere.
Advantages: Great for regular and micropayments. Convenient and easy to use. Do not require physical media.
Disadvantages: Can be hacked. Always connected to the Internet. If you uninstall the program, you may lose access to your wallet forever.

Types of wallets

There are five types of digital storage that you can use.
1. Online Wallet This is a service owned by a third party. Depending on the wallet device, the keys are stored on a remote server or downloaded as an encrypted file to the user’s computer. They allow not only to open several wallets for different cryptocurrencies, but also to carry out convertible operations, trade on exchanges, calculate commissions with the help of built-in calculators, etc.
Advantages: Quick registration. Anonymity. Verification is not necessary. Ability to work with multiple cryptocurrencies.
Disadvantages: Risks inherent in cryptocurrency exchanges. There is a possibility of wallet to be hacked. Additional expenditure.
There are no reliable ways to protect funds on such platforms. Therefore, recommendations for the protection of funds are reduced to the diversification of risks, that is, working simultaneously with several wallets.
Examples of popular online wallets: HolyTransaction. The multi-currency wallet, founded in 2014, supports more than 10 of the most popular cryptocurrencies. It has an intuitive interface, Commission in comparison with other wallets. Coinbase. The wallet, created in 2012, supports bitcoin and ether. Cryprtonator. The most popular multi-currency wallet in the CIS.
2. Mobile Wallet This is a program to install on mobile gadgets. Interesting for those for whom cryptocurrency is a means of payment for goods and services. The current version of the blockchain is usually stored on the application server that provides access to updated data and does not require a large download of data to the phone.
Advantages: It can be safer than online wallets. Conveniently use on the go. Offer additional features such as QR code scanning.
Disadvantages: Unfortunately, mobile wallets are not the most secure. Therefore, it is hardly suitable for storing large amounts of funds.
Examples of popular mobile wallets: Coinomi. One of the best wallets for Android that supports more than 50 cryptocurrencies. Its advantage is the ability to enter seed-phrase, which allows you to recover wallet data. Xapo. Wallet from California company that supports Bitcoin. Access to the funds in the wallet is insured, it is possible to issue a debit card, you need to bind a mobile number.
3. Hardware wallet
This is a separate removable device like a flash drive. This method of storing keys is not very popular yet, because it is suitable only for long-term storage (it is inconvenient to trade with it). But it does not overload the computer.
Advantages: Private keys are never exposed to your computer. The hardware is immune to computer viruses. Your hardware requires you to confirm a transaction on your device (not the app on your computer) before any coins can be spent.
Disadvantages: The only downside to hardware wallets is that they cost money. However, it might be worthwhile to consider investing in a hardware wallet because they are more secure; especially if you hold a significant amount of coins.
Examples of popular hardware wallets: KeepKay. Supports 4 major cryptocurrencies. Ledger Wallet. Trezor.
4. Desktop wallet
These are the programs that you install on your computer.
Advantages: Desktop wallets store keys on your hard drive. Considered that its one of the most reliable options among offline wallets. It is a program installed on your computer, with which you can access data about your cryptocurrency account.
Disadvantages: Their disadvantage is the need for constant updating, which takes a lot of memory. Because desktop programs are divided into “thick” and “thin”. “Thick” (“heavy”) program, who are themselves from the very beginning, download whole blockchain and keep them updated. “Thin” (“light”) — download the necessary information from third-party services. Despite the fact that the file with the key remains on the computer, there is a risk that the data from the services will not be downloaded the ones that are needed.
Examples of popular mobile wallets: Exodus. Has an integrated exchange platform ShareShift supports 7 cryptocurrencies. Bitcoin Core. One of the best wallets for bitcoin, working with all operating systems. Armory. In addition to Bitcoin Core, which allows you to increase the level of storage security.
5. Paper wallet
A unique option for storing keys, which is a printout of a picture with a QR-code containing a public address and a private key. Long-term storage option for those who do not trust electronics.
Example: bitaddress.org
Each wallet has its advantages and disadvantages. Which option to choose depends on the goals.
submitted by SwapSpace_co to CryptoNews [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
submitted by Stealthex_io to bitcoinxt [link] [comments]

Common Bitcoin Scams And How To Avoid Them

As the popularity of cryptocurrencies is increasing with every year, more and more scammers appear around it. Therefore, it is very important to protect yourself from any kind of fraud in the crypto world. Here are the most popular ways of Bitcoin scams and our tips on how to avoid them. Forewarned is forearmed!
1. Pyramid (or Ponzi) schemes
In this case, users can be lured by promises of incredibly high profits at extremely low investments. Here’s how a classical pyramid scheme works: the first investors attract new people from which receive profiteering. And when the flow of the new investors falls, the pyramid collapses.
How not to fall for a pyramid scam:
2. Scams with fake wallets and exchangers
Here we are talking about fraudulent sites. Some pretend to be Bitcoin wallets, some look like exchanges, some are kind of both at once. Usually, sometime after registration, they work normally to put off your guard and earn trust. You peacefully deposit your crypto, the funds in the account accumulate — and the scammers vanish with your currency.
How not to fall for a scam:
3. Cloud mining
The mining process requires good and expensive computer equipment, so some people offer “mining for rent” on their equipment. There are some legal cloud mining services that let users rent server space to mine coins. On the other hand, there are also plenty of cloud mining scams out there.
How not to fall for a mining scam and be sure that service is legitimate:
4. Malware
This type of fraud has long been a weapon in the armory of online scammers. Malware in a crypto world is created to get access to your wallet and drain your account, monitor the Windows clipboard for crypto addresses and swap your valid address with an address of a scammer.
How not to fall for malware scams:
5. Phishing
The typical phishing scheme is extremely simple. The scammer sends the user an e-mail from the so-called crypto exchange or wallet provider in which the lurcher places a link to the fake website. The main goal is to force the user to go to the fake page and enter personal data (username, password, private key and so on). This confidential information allows theft to access the original website on behalf of the real user and walk away with the user’s currency.
How not to fall for phishing scams:
You should remember that the risks of scam and speculations are everywhere. Make reasonable investments and never take big risks. And finally, guards up by following our pieces of advice.
Like and share this article if you find it useful. Want more interesting articles on the crypto world? Follow us on Medium, Twitter, Facebook, and Reddit to get Stealthex.io updates and the latest news about the crypto world. For all requests message us at [[email protected]](mailto:[email protected]).
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The Crypto Armory brings you Cryptocurrency News, ICO Reviews and Events from the fast-paced Blockchain and Fintech industry including Bitcoin and more. Armory Bitcoin Core Install - Bitcoin Core GUI bitcoin, and click the Bitcoin icon; Armory Wallet Not Online; Sed '/^$/d' and grep -Ev '^$' failed to remove blank lines Is preaching recommended or mandatory to a temple priest? I can not get the hot version of Armory to run on Windows. Once that completes you have Bitcoin Core installed. Select the card (Bitcoin) you would like to fund and click ‘add funds’. Important note: when funding from a debit/credit card you will need to first add funds to a traditional currency such as USD or GBP then transfer that value to the cryptocurrency of your choice. If you haven’t already linked your debit/credit card you can do so easily. The Armory wallet is an open source, cold wallet designed for Bitcoin that supports the multi-signature system for a safe and easy to use user interface. Armory offline wallets require no synchronization except for the initial transfer of a “watching-only wallet” to your online computer. This watching-only wallet functions exactly like a regular wallet, but it does not contain any private data, and thus cannot spend your Bitcoins (making it useless for an attacker).

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Bitcoin Armory Setup - YouTube

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