One of the most talked about subjects on the internet is the bitcoins or cryptocurrencies, in general, the best way to manage your funds, either to receive payments or to make them, is through wallets. See below, how to create a portfolio of bitcoin, what are the types and characteristics of each one. It is a software used on several platforms that organizes and stores the user’s private keys, is wallet access.
Types of wallets
The most important thing is to have access to the portfolios of reliable companies and ensure that they were purchased from the producer’s official website. Going through this, there are two distinct types of wallets, hot and cold.
The cold ones are the safest way to use, without a doubt, as they are stored on pen drives or devices offline. They can be used on computers and cell phones without internet access.
Hot wallets access the internet directly, usually they are apps by cell phone or softwares to use on your computer. They can run through the cloud and although they are less secure due to network access, layers of protection can be added to them.
It’s the most convenient way to store private keys, especially for beginners — all in the palm of your hand. Another advantage is that there are applications that support different cryptocurrencies, in addition to providing additional layers of security.
Repeating the above information, it is important to verify the origin of the application, avoid malicious clones that seek to deceive inattentive users. be sure to do the download only in the official store. After installation, open the app, create your new wallet, or redeem one of your own using the corresponding private key.
- Exodus Mobile (Android e iOS);
- Edge App (Android e iOS);
Hardware wallet (cold wallet, flash drives and offline devices)
Electronic devices store private keys in a offline, far from the internet. The connection is made by bluetooth or cable/plug USB, when you need to authorize transactions, but without a direct internet connection.
Some models also provide storage of private keys (seed) for different cryptocurrencies. You must carefully research the differentials of each model, in addition to ensuring the origin of an authorized dealer — safety is everything.
Desktop or notebook
look like apps From smartphones, the wallets for desktops e notebooks consist of a software which will automatically manage the private keys. The most used are able to manage several cryptocurrencies, facilitating storage through a single password.
It is important to verify the origin of the software, as a corrupted file can lead to losses for the user. be sure to do the download from each supplier’s website — third and final notice. Install and create your new wallet, or redeem one you own using your existing private key.
Online or Cloud
Same operation of apps e desktop softwares, but without the need to install anything. Many opt for this version, but it is necessary to trust the company a lot, as it is not possible to audit the source code.
NOTES NO PAPER!
Before deciding which type of wallet to create, remember that when you create your new one, you will receive a master private key, which can be 12 to 24 words or an entire sentence in English — it can also be up to 72 numeric digits. Write this down on paper and keep it in a safe place, the order of the words or digits must be the same.
In case the cell phone is stolen or the computer is formatted, it is through this private key that the user can recover his wallet, reinstalling the software on the computer or the app on the cellphone. Without that, “blau-blau” cryptocurrencies, all is lost.
How does the wallet work?
the portfolio of bitcoin stores the private keys of cryptocurrencies, which can be distributed at different addresses on the network — enhancing privacy and security.
Private keys (seed) manage to generate millions of public addresses to receive bitcoins, similar to a bank checking account. This guarantees more privacy, as this way there is no single address with the entire balance of the user.
Holds different currencies
It is possible to store and manage different cryptocurrencies within the same wallet, but it is important to remember that each cryptocurrency has its blockchain specific, so they are different private keys.
To make life easier for the user, some softwares allow you to manage different currency wallets with a single password — but not all.
However, it can be said that an address of bitcoin will only receive BTC shipments, while the address generated by the portfolio of litecoin only receive LTC. These addresses, despite being composed of a sequence of letters and numbers, are different for each network. You cannot receive a cryptocurrency other than the corresponding address.
Advantages of the virtual wallet
Storing Private Keys in a Virtual Wallet (wallet) the benefit of mobility is gained, as it is possible to transfer cryptocurrencies simply and quickly, without depending on third parties.
By leaving the cryptocurrencies in the exchange, the cryptocurrency brokers, are the ones who take care of the private key. In short, if the site has problems, the user will not have access to the wallet.
In addition, the virtual wallet service is free, and several programs have open source code, that is, they are completely auditable by the user — it’s fashionable, but knowledge is needed to do so.
There is no better or worse portfolio, they are different and focused on different users, for beginners the best options are the apps cell phone and the softwares for computer. The important thing when creating a portfolio of bitcoin or another cryptocurrency is to verify the provenance of the program.
With information: Bitcoin.org, Coinext.