How can I protect my crypto wallet, public, and private keys?
2009 was a revolutionary year. The world witnessed the digital financial revolution, paving the way for decentralized transactions. It promised great returns, encouraging more people to invest in it.
Investing in cryptocurrency can be overwhelming, especially when you are starting from scratch. Although crypto exchange promises great support and complete security, you need to do your research. There are several aspects that you need to take into consideration. In this article, we will discuss the key aspects that will help you through with safe investment in cryptocurrency.
Key points to consider
Here are some of the key points you need to consider when investing safely in cryptocurrency.
- Begin with choosing the right crypto exchange platform – If you want to invest in cryptocurrency, then one of the first things you would need is the platform on which you will make all the investments. There are a number of them, so make sure that you choose the one that guarantees complete safety and does the KYC like the allin1bitcoins.com. Also, make sure that it accepts all the payment methods to make purchasing crypto easier.
- Evaluate your goals – Before starting your trading journey on any crypto exchange platform, you need to evaluate your interests and trading goals. Whether you are only interested in a specific crypto coin, or you are more drawn to diversify your assets, you should definitely do more research about the crypto investment platform terms and most importantly the security measures and withdrawal options.
- Choosing the wallet – It is highly recommended that you must have a crypto wallet if you want to get into crypto transactions. Different type of wallets are available and, and each of these has its own set of pros and cons. So, make sure that you assess all these aspects before choosing the one. The following section will highlight the details of the same:
- Desktop wallet – As you can work out from the name, this wallet is installed on the computer and gives complete access and control to the user.
- Mobile wallet – If you are looking for easy accessibility, then a mobile wallet is a good choice. One of the best features of this wallet is that you can access the fund at any time. If you have a mobile wallet and use it to make the payment, you can easily access it.
- Online wallets – In these wallets, the private keys are stored online on a server under someone else’s control. Although accessing it is easy and you can do it practically from anywhere, there is always a risk of hacking or breach of the server. In a case like that, there is a chance of you losing all your money.
- Hardware wallet – If you don’t want to risk it, hardware wallets are a good choice. These have private keys stored offline. You can explore the different hardware options like the USB stick. It is easy to carry it along with you and use it as and when required.
- Paper wallet – The next option is a paper wallet. This is also a kind of offline wallet. It is protected by two keys: private and public keys. While the private key is the passcode to your account, the public key is like the account number of your bank. It is highly recommended that you share the details of the same with anyone. Well, physically storing the private key is not a feasible option. Hence you must be very careful if you decide to go ahead with a paper wallet.
Elaborating further on the public and private key
When we talk about Bitcoin mining, special and highly powerful computers are used to process the mining. The complete process of verification and validation is done using a digital key that matches with the encrypted mathematical equations. These digital keys can be a public key or a private key. These are alphanumeric strings used to identify ownership of the Bitcoin wallet.
As mentioned above, digital wallets are protected by public and private keys. The public key is generally used for data encryption. On the other hand, the private key is used for data decryption.
When you are trading Bitcoins, the user must provide the public key to another part to make a purchase. When you share the public key, you share the access to your wallet. But to complete this transaction, you would need to digitally sign it with the private key. The private key works like a digital signature to complete the transaction. Blockchain automatically approves the transaction in which public and private key matches.
Invest safely in cryptocurrencies
With this detailed information about Bitcoin transactions and wallets, it will be easier for you to make your crypto investment journey safe and free from any fraud or threat.