Safe Storage for Cryptocurrencies and their Properties
Once you have your cryptocurrencies, the best place to store them would be in a hardware or software wallet where you can access them anytime you need. Do not leave your coins at the exchange unless you are willing to lose them. Hardware and software wallets, unlike an exchange, are safer with fewer chances of being hacked into.
In conclusion, just like when you trade in stocks or forex, there are hundreds of factors that can lead to a surge or decline of the value of cryptocurrencies. As such, you need to observe the market keenly to know when to sell and when to hold.
Properties of Cryptocurrencies
- Pseudonymous – accounts and transactions aren’t linked to real-world identities. Addresses with random chains of 30 characters receive Bitcoins. You can assess the flow of transactions but it isn’t possible to link user identities to the addresses.
- Irreversible – a confirmed transaction isn’t reversible. Nobody can reverse the funds once sent and confirmed.
- Secure – a public key cryptography system is used to lock cryptography funds. You can only send funds if you have an address’ private key. The scheme is impossible to break due to the use of big magical numbers and strong cryptography.
- Fast and international – transactions are instant and get confirmed in a few minutes across a global computer network, hence aren’t tied to a user’s physical location.
- Requires no permission – cryptocurrency software is available for free download and use, making it permission-free. There’re no special requirements to use cryptocurrencies.
The various cryptocurrencies include:
- Bitcoin cash
- Bitcoin SV
- Binance coin