The new digital world has turned the functioning of activities upside down, eliminating the traditional working mechanism.
What are we talking about? You ask?
Well, here’s a question we have for you. Do you have money in your wallet right now?
Maybe or maybe not! But most of you must be already familiar with the digital currency taking a toll over the paper currency used since ages for exchange.
The digital currency being used nowadays is called cryptocurrency, which is used to buy products and initiates a secure online transaction.
Sure, using digital money is an excellent method of purchasing goods and services without worrying about getting mugged; however, many people seek answers to questions like, is it safe to leave crypto in exchange?
Sit back and relax as this guide has got everything you need to know and will answer all your queries. So, let’s get started!
As mentioned above, cryptocurrency is the new form of online payment used in exchange for goods and services.
But how do these cryptocurrencies work?
Blockchain tech has got a role to play behind working of the digital currency. It is a decentralized tech extended to numerous systems that record and manages transactions.
Reasons Behind Popularity of Cryptocurrencies
Unquestionably, cryptocurrencies are appealing to their users.
Why? Keep reading to know more!
- Take an example of Bitcoin, one of the most popular cryptocurrencies. The ones intrigued by the idea of cryptocurrency have a vision that online currencies like Bitcoin are the future of transactions. Therefore, they’re looking forward to buying the same before it becomes of a higher value.
- Everyone’s familiar with how the central banks act as middlemen in money supply, decreasing the value of money via inflation. Therefore, the cryptocurrency supporters like the idea of the elimination of central banks.
- Many people favor cryptocurrencies because of the technology being used behind the same, which is blockchain tech. Notably, the technology is much more secure than the traditional exchange methods.
How do One Buy Cryptocurrency?
Most cryptocurrencies require you to pay Bitcoin or an alternate cryptocurrency in exchange. Therefore, to buy the same, having an app that holds your currency is essential to act as your wallet.
To make it easier for you, Coinbase is one of the most popular cryptocurrency trading exchange that enables you to create a wallet and buy and sell cryptocurrencies.
Is It Safe to Leave Crypto in Exchange?
If you’ve already traded or currently investing in cryptocurrencies, you must have heard of the term ‘private keys.’ In simple words, a private key enables users to access their cryptocurrency.
Answering your question, if leaving crypto in exchange is safe, it is definitely not. If you leave your crypto in exchange, the private keys to your coins are with the exchange and your currency can easily be stolen. Therefore, it is essential not to leave crypto in exchange for which you have no plans to trade.
For further security, below mentioned are the top three tips that you might want to know:
Utilizing a Hardware Wallet
A hardware wallet is a topmost method of securing cryptocurrencies, as these are storage devices specially designed for the safety of crypto. Notably, these wallets can generate private and public keys.
In short, storing crypto in a hardware wallet will keep it safe from the attempts of hacking. Additionally, it is advised to keep the wallet safe as well.
A Paper Wallet- An Affordable Security Method
Hardware wallets are expensive, ranging from $30 to $150. Therefore, if you’re looking for an affordable alternative, a paper wallet is the perfect solution to store your private keys.
As the name implies, a paper wallet is a piece of paper imprinted with your public and private keys. Therefore, it requires you to enter the keys manually or scan the same to transfer the coins.
Sure, a paper wallet is cheaper than a hardware wallet; it demands more protection from damage, degradation, etc.
Do Not Store Your Keys on the System or Cloud
Are you thinking of storing your cryptocurrency on an online medium? It is recommended to just buzz away from the thought.
Nowadays, anything can be accessed online, which means hackers may find a way to steal your crypto by going online.
To Sum Up
Blockchain tech plays a tremendous role in the creation of a secure cryptocurrency system. It is essential to mention that many businesses have started building their own cryptocurrencies that act as a medium of exchange for their customers.
It is clear that blockchain technology ensures the complete safety of data and transactions. Not only this, but it improves transparency and is time saving.
Are you looking for methods to monetize? What’s better than creating a mobile app for your business and including blockchain technology to the same for the safety of the users.