Why cold storage of coins is the best way for cryptovalut?
Availability, wide popularity and rapid development of cryptovalues now attracts new users, but many of them have very little understanding of the details of the Blockchain methodology and especially cryptovalues.
To address the gaps in information related to this topic, we offer an article devoted to the problem of preservation of virtual coins, where we will specifically address the issue of cryptographic wallets. It will give the chance to probable users of numerical methods of calculation to mark for themselves the most optimum on a mode and safe variant of storage of own coins.
How to store e-currencies
So, to understand how to store cryptographic currency, one should first understand what such innovative resources are actually. Here it is necessary to allocate that directly the technology of work of electronic currency is very difficult for understanding of the ordinary citizen, but if to explain in more simple words, it represents the decentralized unregulated method of calculation in the online form based on application of the specialized technique Blockchain which gives the chance by means of a separate program code to make financial calculations with full record of all transactions in a network in all blocks of a digital coin of the crypt currency. In other words, it is a piece of computer code where the system prescribes information about all deals in the system using a special method.
As you can understand, the use of information technology in cryptovalues forces users to look for specialized ways to store both data and virtual coins themselves, which we are going to understand.
At the moment, there is a wide enough range of means and tools for storing crypt currency assets. All of them have their advantages and disadvantages, which must be reckoned with in the process of choosing a method of resource storage.
Users have an opportunity to use wallets for cryptov currencies of such formats:
- Online cryptovalue purse
First, let's talk about the easiest and most accessible for everyone method of saving cryptovalut web or online wallet. In principle, this is the usual online platform where you can get an account, thus trusting to store their own crypt currency assets. In this version, all codes and personal keys of the system remain on a third-party resource with a relatively good level of security.
This way of storing digital coins is good in that it does not require specialized resources and is considered the most understandable in terms of registration. Besides, such platforms very often offer a fast and clear mode of performing exchange transactions on the cryptographic currency market, even before trading on Blockchain technology assets.
Together with such advantages, this type of wallets has serious drawbacks it is the probability of hacking into clients' resources and stealing crypto currency money. The online mode of purse activity gives the chance to swindlers to apply variants of phishing, malicious programs and by itself hacking accounts for reception of means of users.
Therefore, this format of wallets is not used by serious investors to store large amounts of cryptographic currency usually this storage mode is used at cryptographic currency exchanges, where investors need to get high speed of transactions while trading digital coins. In general, if you are an inexperienced person in the crypto currency market, then the web-purse can be a starting point for you in a more serious work with virtual methods of calculation in the future.
- Cold wallet for cryptocurrency
But cold storage this is the perfect opposite of the above method: there, in contrast to the online wallet, used as an offline protection. Yes, however strange it may be, but the Internet technology for its greatest protection needs to be removed from the network.
Cold or Desktop wallets use separate programs to store quinos, which need to be installed on your personal computer. Here it is necessary to notice that such information products possess very big size as, starting a desktop purse, it is necessary to think about presence of free volume on a hard disk approximately 100 Gb. But in spite of such difficulties, a cold cryptovolta purse is considered one of the safest ways to store digital coins.
Let's talk about the basic advantages and disadvantages of cold storage for digital currencies. The advantages include such things: Offline mode, which seriously limits the access of outsiders to digital coins; A remote way to save codes and keys; The quality of the software resource the essence of the fact that almost all Desktop Wallets are distributed on the official sites of system creators of a particular cryptographic currency, which also eliminates the possibility of access to your money. The highest degree of safety.
The disadvantages have to be counted: The size of the software you need is palpable; Poor transaction speed, requiring multiple confirmations.
The majority of specialists in this field call cold storage of coins the best way for cryptovalut. This is confirmed by the fact that at the moment there is no evidence of hacking this type of wallets.