CryptoURANUS Economics: CryptoCurrency Wallets: Defined in CryptoCurrency

Wallets in CryptoCurrency: Defined

A wallet is defined as software that interacts with the blockchain and lets users receive, store, and send their digital money.

Blockchain wallets don’t actually store the money, instead they lock away access.

The only way to get access to the money is by providing a key, a string of letters and numbers like a password.

Cryptocurrency Wallet Step-By-Step Tutorial:

Use this a guide about cryptocurrency wallets, how they work and which ones are the best on the market.

What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a software program that stores private and public keys and can interacts with various blockchains to enable users to send and receive digital currency and monitor their balance.

If you want to use a single cryptocurrency, such as, Bitcoin or any other cryptocurrency coin, you will need to have a digital wallet.

Cryptocurrency Wallet: How do they work?

Countless of sentient beings use cryptocurrency wallets, and there is a common considerable misunderstanding about how they work.

Unlike traditional ‘pocket’ wallets, digital wallets do not store currency.

Currencies do not get stored in any single location or exist anywhere in any physical form.

All that exists are records of transactions stored on the blockchain stores in a cryptocurrency wallet.

Cryptocurrency wallets are software programs that store your public and private keys and interface with various blockchain so users can monitor their balance, send money and conduct cryptocurrency transactions and other operations.

When a person sends you digital currency, like bitcoin, they are essentially signing off ownership of the coins to your wallet’s address.

To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to.

If public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly by transaction.

There is not actual exchange of real green-back coins currencies.

The transaction is signed by transaction record on the blockchain and a change in balance in your cryptocurrency wallet is accumulated.

What are the different types of Cryptocurrencywallets(?):

There are several different types of wallets that provide ways to store currencies and access your digital coins.

Wallets can be broken down into three distinct categories:

Software.
Hardware.
Paper.

Remember that Software Wallets can be:

On a Desktop hard-drive/HDD/SSD/USB.
Inside of a Mobile Phone.
On a remote Server Online.

The Desktop:

The desktop Wallets are downloaded and installed on a PC or laptop. They are only readable as a file and accessible from your own single computer in which you downloaded your wallet onto. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.

The Online Storage Wallet:

Online Wallets run on the cloud and are accessible from any computing device in any location.
Online wallets might be convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.

Mobile Cell-Phone Storage:

Mobile Cell-Phone Storage SSD device wallets runs on an app within your phone.
SSD's are useful because they can be used anywhere including retail stores. Mobile wallets are much smaller, more simplified provide you are Cell-Phone friend.

A Hardware Wallet:

A Hardware wallet is different from a software wallets that in a hardware wallet method stores user’s private keys on a hardware device like a USB.
Hardware wallet transactions online are easier, they are stored offline on the hand held device which delivers increased security provided you are not absent minded.
Hardware wallets compatibility with several web interfaces and can support different many to unlimited currencies, (regards this current date of: Sept-7th-2018).
This all depends on which one of the cryptocurrency coins you decide to use and engage into exchanges via transactions with others.

Making Hardware Transaction is easier:

Hardware Wallet Transactions with USB-wallet simply connect their device to any cell-phone or internet-enabled computer or other devices via USB connection, and-or Bluetooth, next - enter a pin, then - send currency and then wait for confirmation of transaction(s).
Hardware wallets make it possible to easily transact while also keeping your money offline and away from dangerous and riskey hacker second parties.

The-Paper:

The paper wallet is easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, but there remains a security risk if the paper stolen.
This, (Paper-Wallet), can also refer to a piece of software that is used to securely generate a pair of keys which are then printed.
Using a Paper-Wallet is relatively straightforward and simple minded approach.
Transferring Bitcoin or any other currency to your Paper-Wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your Paper-Wallet.
Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your Paper-Wallet to your Software-Wallet.
This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code that is printed on paper upon piece of paper known as a Paper-Wallet.
And... remember always, that a paper wallet is only as secure as your hiding place; where it is stored and kept hidden.

Are Cryptocurrency Wallets Secure(?):

Wallets are secure to varying degrees and this depends how you intelligently manage your wallet.
Wallet security level is importantly depends on the type of wallet you use (1.desktop, 2.mobile, 3.online, 4.paper, 5.hardware) and then provided that your online-service is not a hack job, or exploited/hacked then you are safe.
A secure web server storage is an intrinsically riskier environment to keep your currency compared to offline.

Online-Wallets:

The Online wallets can expose users to possible vulnerabilities in the wallet platform and not being compressed into a file-encraypted, and a wallet placed can be easily exploited by hackers on an exchange, because they do not encryption a wallet into a file with password.
Exchanges are very dangerous to place your wallet on, because hackers can steal your cryptocurrency funds if and when kept on exchanges rather than another more secure storage-service(s) and or location(s).
Offline wallets, on the other hand, cannot be hacked because they simply aren’t connected to an online network and don’t rely on a third party for security, but a piece of paper can be stolen as well, so security is prime directive unconditional.
Although online wallets have proven the most vulnerable, (via exchanges), and prone to hacking attacks, diligent security precautions need to be implemented and followed when using any wallet.
Wallet Rules of use, losing your private keys will lead you to lose your money.
When your wallet gets hacked, or you send money to a scammer, there is no way to reclaim lost currency or reverse the transaction. You must take precautions and be very careful!

Backup your wallet:
Store no amounts of currency for everyday use online is the best security option, otherwise you risk being hacked.
You can store your wallet on a computer or mobile device, but this resolves a risk as well.

keeping your funds in a highly secured environment.

Cold or offline storage options for backup like Ledger Nano or paper or USB will protect you against computer failures and allow you to recover your wallet should it be lost or stolen.
No-One Protects You against eager hackers with decryption penetration technics breaking your code. The reality is, if you choose to use an online/offline wallet(s) there are inherent risks that can’t always be protected again

Update software:

Keep your wallet software up to date so that you have the latest security enhancements available. You should regularly update not only your wallet software but also the software on your computer or mobile.

Add extra security layers:

The more layers of security, the better.
Setting long and complex passwords and ensuring any withdrawal of funds requires a password is a start.
Wallets that have a good reputation and provide extra security layers like two-factor authentication and additional pin code requirements every time a wallet application gets opened.
Consider a wallet that offers multisig transactions like Armory or Copay. A multisig or multi-signature wallet requires the permission of another user or users before a transaction can be made.

Multi-currency or single use(?):

Bitcoin is a popular digital currency, and there is hundreds of new cryptocurrencies, (referred to as altcoins), have emerged.
If you’re interested in using a variety of cryptocurrencies, the good news is, you don’t need set up a separate wallet for each currency.
Alternative to cryptocurrency wallet that supports a single currency, it may be more convenient to set up a multi-currency wallet which enables you to use several currencies from the same wallet.

Are there any transaction fees(?):

Transaction fees are a tiny fraction of traditional bank fees.
Sometimes fees need to be paid for certain types of transactions to network miners as a processing fee, while some transactions don’t have any fee at all.
It is also possible to set your own fee.
As a guide-line rule, the median transaction size of 226 bytes would result in a fee of 18,080 satoshis or $0.12. In some cases, if you choose to set a low fee, your transaction may get low priority, and you might have to wait hours or even days for the transaction to get confirmed.
A needed transaction completed and confirmed promptly is when you must inact an increase the amount you’re willing to pay to remain secure.
The wallet you end up using, transaction fees are not something you should worry about. You will either pay minuscule transaction fees, choose your own fees or pay no fees at all.
A definite improvement from the past!

Are cryptocurrency wallets anonymous(?):

Wallets are pseudonymous, and this is a golden rule.
Wallets are not tied to soveriegn identitions of a user and the transactions are stored publicly and permanently on the blockchain.
Your personal residence information will not be in your wallet, and-or the data that could be traced to your identity in a number of ways.
Making anonymity and privacy easier to achieve, there are obvious downsides to full anonymity if you do not know enough about this topic and there are many safeguards initiations that must be acted upon firstly; learn and be your own Jedi-master and no other.
The "Dark-Wallet-Project" is a needed resource that is looking to beef up privacy and anonymity through stealth addresses and coin mixing.

Which Cryptocurrency wallet is the best(?):

List of options and opertunities to improve your security is never ending as the market evolves, and exploiter-hackers learn new penetration techniques.
Before picking a wallet, you should, however, consider how you intend to use it.
Needing a wallet for everyday purchases or just buying and holding digital currency for an investment?
Do you plan to use several currencies or one single currency?
Requiring access to your digital wallet from anywhere or only from home is a decision of importance.
Think clearly and wisely regards your assess your requirements and then choose the most suitable wallet for you.

Cryptosteel Stainless Steel Bitcoin Crypto Wallet:

Cryptosteel is the highly rated metal wallet made of "100% AISI 304 stainless steel".

This Cryptosteel is the best option for the easiest to use and most hassle-free metal seed wallets on the market as of date; Spet-07-2018.

The Cryptosteel Wallet is rugged with features include being fireproof up to 1200°C (2100°F), waterproof, and shockproof.

This solid The Cryptosteel Wallet is double-sided and holds 12 words per side.

It actually holds only the first four letters of each word but that is all you need for the BIP39 specification.

The The Cryptosteel Wallet comes with metal letter tiles that slide securely into the wallet for an easy method to record your seed phrase.

When the The Cryptosteel Wallet is in its closed position, the wallet has a hole that can accommodate a padlock or anti-tampering tag (just keep in mind a padlock can be easily picked or cut off).

The Cryptosteel Wallet website offers several versions for other forms of private keys and passwords.

Those using a 12 to 24 word seed phrase should choose the Cryptosteel MNEMONIC wallet.

CryptoColdSteel Website: cryptosteel.com

Buy Cryptosteel MNEMONIC at Amazon

ColdTi Titanium Metal Crypto Seed Storage Wallet:

The ColdTi titanium wallet is a more affordable alternative for a metal seed storage wallet.

The metal titanium has higher melting point than stainless steel in excess of 1650°C (3000°F) and it is rust proof.

This ColdTi titanium wallet includes (1). two titanium plates, (2). 24 spaced words each, (3). two binding post sets, a (4). uniquely numbered holographic stickers to seal the wallet, and (5). Provides a tampering indicator.

The downside to this wallet is the time consuming use of the Cryptosteel.

The ColdTi titanium wallet space needed to engrave or stamp the seed words into the titanium plates is time consuming.

ColdTi titanium wallet Owners have reported that the wallet includes numerical stamp tools, and not letter stamp tools.

This provides recovery record phrase you will need to convert your "seed "words to "seed numbers", which you can do at this site: Click Here.

Another ColdTi titanium wallet alternative is to buy letter stamps or an engraving tool separately.

Crypto-Users have reported difficulty with stamping the titanium plates. See this video for tips, ideas, and cryo-diration.

CryptoColdTitanium Website: coldti.com

Buy ColdTi Titanium Seed Storage at Amazon

Blockplate Stainless Steel Recovery Seed Wallet:

The "Blockplate" is a simple "ANSI 304 Stainless Steel" option that includes two plates that can record 12 recovery words each (6 words per side).

Rather than using number or letter stamping bits, the Blockplate uses a single center punch tool to indicate the order of the letters (labeled on the plate) for each word.

For an additional layer of protection you can keep each plate with half of the seed phrase in separate locations so that if one plate is compromised it can’t be used to recover your private key without the other plate.

CryptoBlockPlate Website: blockplate.com

Billfodl Stainless Steel Crypto Private Key Backup

The Billfodl Stainless Steel Wallet has the same stainless steel design as the Cryptosteel.

Advantages of the Billfodl Stainless Steel Wallet is that it comes with more tiles than the basic Cryptosteel MNEMONIC model which only comes with capital letters.

All Billfodl Stainless Steel Wallet includes over 350 tiles with capital and lowercase letters, numbers, and blanks.

Billfodl Stainless Steel Wallet allows you to support alphanumeric or hexadecimal keys in addition to the 12-24 word seed phrase.

Advanced well designed Billfodl Stainless Steel Wallet is made of 316 stainless steel versus the more common 304 type seen in other metal storage wallets.

The Billfodl Stainless Steel Wallet and it's 316 stainless steel quality is more corrosion resistant against chlorides like seawater.

This Billfodl Stainless Steel Wallet also sells accessories on its website like the Fodl Hodler hiding mount and tamper-proof stickers.

CryptoBillFodl Website: billfodl.com

$Buy$ Billfodl at Amazon

Safe Seed MNEMONIC Crypto Currency Wallet Recovery Metal Backup Kit:

The Safe Seed copper metal wallet is an all-in-one solution with a mid-range price that includes two copper plates and stamping tools to record your recovery seed phrase. Copper has a slightly lower melting point than stainless steel and will not rust, so it’s probably a decent option. Unfortunately there is not much information available on this wallet.

Bread Wallet:

A Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email.

The Bread Wallet can be downloaded from the App Store or Google Play.

All the Bread Wallet offers a standalone client, were-by, there is no server to use when sending or receiving bitcoins, is great.

That means users can access their money and are in full control of their funds at all times.

Regardless in Overall scheme, Bread Wallet’s are a clean interface, lightweight design and commitment to continually improve security, make the application safe, fast and a pleasure to use for both beginners and experienced users alike.

Pros: Good privacy & security, beginner friendly, simple & clean, open source software, free.

Cons: No web or desktop interface, lacks features, hot wallet.

Mycelium:

Advanced users searching for a Bitcoin mobile digital wallet, should look no further than mycelium. The Mycelium mobile wallet allows iPhone and Android users to send and receive bitcoins and keep complete control over bitcoins. No third party can freeze or lose your funds! With enterprise-level security superior to most other apps and features like cold storage and encrypted PDF backups, an integrated QR-code scanner, a local trading marketplace and secure chat amongst others, you can understand why Mycelium has long been regarded as one of the best wallets on the market.

Pros: Good privacy, advanced security, feature-rich, open source software, free.

Cons: No web or desktop interface, hot wallet, not for beginners.

Exodus:

Exodus is a relatively new and unknown digital wallet that is currently only available on the desktop. It enables the storage and trading of Bitcoin, Ether, Litecoins, Dogecoins and Dash through an incredibly easy to use, intuitive and beautiful interface. Exodus also offers a very simple guide to backup your wallet. One of the great things about Exodus is that it has a built-in shapeshift exchange that allows users to trade altcoins for bitcoins and vice versa without leaving the wallet.

Pros: Good privacy & security, beginner friendly, intuitive, easy to use, in-wallet trading, supports multiple currencies, open source software, free.

Cons: Hot wallet, no web interface or mobile app.

Copay:

Created by Bitpay, Copay is one of the best digital wallets on the market. If you’re looking for convenience, Copay is easily accessed through a user-friendly interface on desktop, mobile or online. One of the best things about Copay is that it’s a multi-signature wallet so friends or business partners can share funds. Overall, Copay has something for everyone. It’s simple enough for entry-level users but has plenty of additional geeky features that will impress more experienced players as well.

Pros: Good privacy & security, multisig transactions, multiple platforms & devices, multiple wallet storage, beginner friendly, open source software, free.

Cons: Can be slow & unresponsive, limited user support.

Jaxx:

Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcoin wallet and user interface. Jaxx has been designed to deliver a smooth Bitcoin and Ethereum experience. It is available on a variety of platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android mobile & tablet, iOS mobile & tablet) and connects with websites through Firefox and Chrome extensions. Jaxx allows in wallet conversion between Bitcoin, Ether and DAO tokens via Shapeshift and the import of Ethereum paper wallets. With an array of features and the continual integration of new currencies, Jaxx is an excellent choice for those who require a multi-currency wallet.

Pros: Good privacy & security, Multi-currency, wallet linking across multiple platforms, great user support, feature rich, user-friendly, free.

Cons: Code is not open source, can be slow to load.

Armory:

Armory is an open source Bitcoin desktop wallet perfect for experienced users that place emphasis on security. Some of Armory’s features include cold storage, multi-signature transactions, one-time printable backups, multiple wallets interface, GPU-resistant wallet encryption, key importing, key sweeping and more. Although Armory takes a little while to understand and use to it’s full potential, it’s a great option for more tech-savvy bitcoiners looking to keep their funds safe and secure.

Pros: Good privacy, great security features, multi-signature options, solid cold storage options, free.

Cons: Only accessible via the desktop client, not for beginners.

Trezor:

Trezor is a hardware Bitcoin wallet that is ideal for storing large amounts of bitcoins. Trezor cannot be infected by malware and never exposes your private keys which make it as safe as holding traditional paper money. Trezor is open source and transparent, with all technical decisions benefiting from wider community consultation. It’s easy to use, has an intuitive interface and is Windows, OS X and Linux friendly. One of the few downsides of the Trezor wallet is that it must be with you to send bitcoins. This, therefore, makes Trezor best for inactive savers, investors or sentient human beings who want to keep large amounts of Bitcoin highly secure.

Pros: Good security & privacy, cold storage, easy to use a web interface, in-built screen, open source software, beginner friendly.

Cons: Costs $99, must have device to send bitcoins.

Ledger Nano:

The Ledger Wallet Nano is a new hierarchical deterministic multisig hardware wallet for bitcoin users that aims to eliminate a number of attack vectors through the use of a second security layer. This tech-heavy description does not mean much to the average consumer, though, which is why I am going to explain it in plain language, describing what makes the Ledger Wallet Nano tick. In terms of hardware, the Ledger Wallet Nano is a compact USB device based on a smart card. It is roughly the size of a small flash drive, measuring 39 x 13 x 4mm (1.53 x 0.51 x 0.16in) and weighing in at just 5.9g.

Pros: Screen/device protected by metal swivel cover.

Multi-Currency support.

3rd-Party apps can run from device.
U2F support.
When recovering wallet from seed, the whole process can be done from the device without even connecting it to a computer!

Fairly inexpensive (~$65+ USD).

Cons: Not as advanced wallet software (no transaction labeling).
No ability to create hidden accounts.

No password manager

Green Address:

Green Address is a user-friendly Bitcoin wallet that’s an excellent choice for beginners. Green Address is accessible via desktop, online or mobile with apps available for Chrome, iOS, and Android. Features include multi-signature addresses & two-factor authentications for enhanced security, paper wallet backup, and instant transaction confirmation. A downside is that Green Address is required to approve all payments, so you do not have full control over your spending.

Pros: Solid security, multi-platform & device, multi-sig, beginner-friendly, open source software, free.

Cons: Hot wallet, average privacy, the third party must approve payments.

Blockchain (dot) info:

Blockchain is one of the most popular Bitcoin wallets. Accessing this wallet can be done from any browser or smartphone. Blockchain.info provides two different additional layers. For the browser version, users can enable two-factor authentication, while mobile users can activate a pin code requirement every time the wallet application is opened. Although your wallet will be stored online and all transactions will need to go through the company’s servers, Blockchain.info does not have access to your private keys. Overall, this is a well-established company that is trusted throughout the Bitcoin community and makes for a solid wallet to keep your currency.

Pros: Good security, easy to use web & mobile interface, well-known & trusted company, beginner friendly, free.

Cons: Hot wallet, weak privacy, third party trust required, has experienced outages.

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Saturday, August 11, 2018

CryptoCurrency Wallets: Defined in CryptoCurrency