KAN CAN CRYPTO

In today's Digital age where everything is done with computers and stored in "the cloud" security is a very important matter. The world of CryptoCurrency is no exception. 

With an account at a bank, your security is out of sight and out of mind. The bank is tasked with keeping your money safe. Sure there are the little things like not giving out your pin number for your debit card, not losing your credit card, and never giving out your information on insecure websites but overall, the bank takes care of storing and keeping your money safe. 

Owning Crypto is kind of like being your own bank. You are now in charge of all your own security. Deposits, withdrawals, purchases, and anything else you do with your Crypto is all up to you. And that means storing it is your responsibility. 

Crypto is stored in a "wallet". Each wallet you own can only be accessed and operated with your "secret" or "private" key. If you lose this key, you lose your wallet, YOU LOSE YOUR CRYPTO.

Each wallet also has a "public" key. The public key is used to deposit Crypto. Anyone can see your balance using your public key and a blockchain explorer. NEVER MIX UP THESE TWO KEYS.  

There are different types of wallets as well. Each kind of wallet offers different levels of security. Here I will make an Index of wallets and create a tutorial on creating each one. If you want to recommend a wallet for me to cover or have any questions please DO NOT HESITATE to reach out to me using the form at the bottom of the page. Understanding your wallet is as important as understanding your personal Bank account.

 

Wallets are broken up into two categories. 

1. The term “hot wallet” describes a wallet connected to the internet. These wallets are usually easier to use and access however more accessible to being hacked or stolen. Less secure but More convenient.

2. The term “cold wallet” describes a wallet not connected to the internet (for example a hardware wallet unplugged and in a safe.) When cryptocurrency is in “cold storage” that means it is being held offline in a “cold wallet.”

Funds you want to use like cash should be in hot wallets, funds you want to store long term are best held in “cold storage” in an offline wallet.

 

 

•  Desktop Wallet: The most common type of wallet. Typically an app that connects directly to a coin’s client. 
   

• Mobile Wallet: A wallet that is run from a smartphone app.
   

• Online Wallet: An online wallet is literally a web-based wallet. You don’t download an app, but rather data is hosted on a real or virtual server.  Some online wallets are hybrid wallets allowing encryption of private data before being sent to the online server.
   

• Hardware Wallet: Dedicated hardware that is specifically built to hold cryptocurrency and keep it secure. This includes USB devices. These devices can go online to make transactions and get data and then can be taken offline for transportation and security.
   

• Paper Wallet: You can actually print out a QR code for both a public and private key. These keys allow you to send and receive digital currency using a paper wallet. With this option, you can completely avoid storing digital data about your currency by using a paper wallet offline.

 

IMPORTANT: Remember that with any wallet, if you lose your private key, then you lose your money. This is true for paper wallets, hardware wallets, or any other wallet type. The reason you lose your keys doesn’t matter; there is no way to reclaim your cryptocurrency without them. Backup your keys as much as you can without compromising the security of your wallet.