Securely storing virtual currencies

By Johnni Dys | | 17 Sep 2019

In order for you to buy, sell, and mine virtual currencies, you must have a virtual wallet in your possession, which is where they go when they are sent to you, so that you can better understand what a virtual wallet is and how to protect it. , see below:

What is a virtual wallet?


Imagem de mohamed Hassan por Pixabay 

The virtual wallet, as its name implies, is for you to store your virtual currencies, they can be of different types, such as: web, desktop, mobile, among others. It is through them that you can send your currencies, check your balance and balance. But the important thing is to always be aware of the public and private key of your virtual wallet, as well as username and password.


Is it in the virtual wallet that my coins stay then?


Yes and no, so that you do not get confused I will try to explain as best as possible, firstly, in your wallet will only be the record of transactions made, it does not store the currency as the real wallets. As you may have already noticed my examples are creative is not really, well, imagine that the blockchain is a huge terrain, and this terrain is divided into thousands of others, which are the right bitcoins, so it's basically in your virtual wallet that is the scriptures of these lands. When you sell land you don't really have to make a contract? That's the same thing, when you sell your bitcoin or buy from someone you have to make a contract that there in the blockchain you have that particular bitcoin, when you synchronize your wallet the blockchain sees and says “oops, this one owns 10 bitcoins ”. I like to explain it in a simplified way, so lay people can better understand how it works, because many do not understand encryption.


Virtual Wallet Types

As stated above there are several types of virtual wallets at your disposal, among them are:


  • Desktop wallet

The desktop wallet is basically a software developed for computer, these are the most used wallets, as they are practical and easy to assimilate, since its interface is intuitive and easy to understand. A major disadvantage of this virtual wallet is that you always need to consult your funds on a computer. Although it is intuitive and easy and you have to be careful with this type of wallet, for example, it can be vulnerable to hacking attacks or be infected with a virus, which could lead to the loss of your entire investment.

  • Mobile Wallet

The virtual wallet for mobile is great for day to day payments and is easy to use and has an intuitive interface, but care must be taken in case of loss of the device or the possibility of the device being damaged, so that is not always the case. It is good to back up your wallet, noting the public and private key, so you can redeem the lost funds.

  • Web wallet


Imagem de WorldSpectrum por Pixabay 


This wallet is the most practical of all, it exists in the cloud and can be accessed from anywhere with internet access. The disadvantage of using web wallets is that the provider does not provide the wallet private key, only the public one, so it is not possible to have full control of the currencies. Another important factor to consider is the fact that the server suffers attacks, if this happens you could lose all funds.

  • Usb wallet

This wallet is great for those who want security, their keys are stored offline, although it can operate online transactions, so the wallet is free of hacker attacks, another important factor to consider is that you have you carry it, but in a lack of attention you may lose your wallet along with all the coins.

Who wants this virtual wallet should shell out a little money, but it is worth it for those who want to collect many coins in the long run, can be used as a bank for example.

  • Paper wallet

This wallet has been becoming popular lately, the great advantage of this wallet is that it is of maximum security, because you can generate it

offline, this way it can never be stolen by hackers, but other than that, it has the disadvantage of loss and loss, but is a great option for those who want to collect virtual currencies in the long run, in which case you are literally printing money, so remember to leave it in a safe or a safe place, after all you won't be able to buy anything from it away from home.


Safety Tips


Imagem de Gerd Altmann por Pixabay 

Now that you know what types of wallet are, here are some safety tips to follow so you don't have to worry about it before you even buy your virtual currencies, make sure it's really safe before to make transfers. Here's how to do it.

  • Keep your private key very well

Amazingly the most common and desperate cases are people who have lost the private key of their wallets, so they have lost all the coins that were there, so take good care of yours, write it down and keep it in a safe place, and make sure no one will ever get to her, don't be showing her around.

  • The more complex the password, the better.

If possible use complex passwords that only you would know, a good idea is to generate encrypted code of, say, a quiz digits to print and store in a safe place. That would be the ideal password.

  • Back up your keys

Back up your keys using paper wallet, prefer to keep your bitcoins always offline, keep online only what you need to use on a daily basis, this way you will protect your assets in virtual currencies.

As you can see throughout the article, the virtual wallet is very important, so that you understand even more of the complex security system behind virtual currencies, I suggest that you read our latest article:A segurança por trás das moedas virtuais.There you'll better understand how cryptocurrency security works the easy way.

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Johnni Dys
Johnni Dys

Apaixonado por economia e finanças pessoais… assunto que deve interessar as pessoas, pois daí deriva a riqueza pessoal e de uma nação, com consequências sobre a qualidade de vida e tranqüilidade pessoal.

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