What are Cryptocurrency Wallets?

What are Cryptocurrency Wallets?

Where is your cryptocurrency stored?

In a bank? No, there’s no central authority that oversees all transactions.

In a physical location? No, this is digital currency we’re talking about.

Where then? In a wallet.

Just like a physical wallet for your cash, your cryptocurrency can be stored in a wallet. It’s yours alone to access and it comes with stringent security features. Let’s dive into this.

What is it exactly?

You might know that cryptocurrencies use encryption - public and private keys - to authenticate transactions and validate balances. The cryptocurrency wallet is a software program that provides these features, giving you a unique ID through which all your transactions are identified with you and preventing any unauthorized access to your digital money. In order to use bitcoins, Money Trade Coin and other cryptocurrencies, it is necessary to have a cryptocurrency wallet. 

You’ve got to remember that these wallets don’t really store money - they store information about all the transactions on the blockchain and your portion of the cryptocurrency on the blockchain.

How does it work?

Each wallet has a private key associated only with it. In order for a transaction to be conducted over the blockchain, your public key must match with the private key on your wallet. The public key denotes how much currency on the blockchain is being transferred to your wallet. 

This system keeps your wallet secure and also doubles as a ledger.

Types of wallets

There are multiple kinds of wallets. Money Trade Coin will dissect the several kinds and the specific wallets in a future post. For a broad overview, they can be divided into the following categories:

Hardware

While all others wallets on this list are online-based, hardware wallets allow users to store their currency offline. It usually comes in the form of a USB drive. There is the option of connecting to the web as well. In order to conduct transactions, you simply plug in the device, connect to the web, enter your pin and confirm the transaction.

Mobile

This is a common type of wallet. It is used to conduct transactions in stores and when you plan to send money to another individual. Through a mobile application, your wallet can send and receive currency in practical situations.

Desktop

This one’s pretty self-explanatory. You use desktop wallets on your computer or laptop. They typically have high-security features, though you should be careful about the security of your computer as there are viruses and hacking attempts that go for cryptocurrency wallets.

Online

Online wallets can be used from anywhere, as they operate out of the cloud. However, cloud-based wallet services are vulnerable to hacking attempts, as a third party is in charge of your wallet and private keys are stored online.

There’s a lot more to cryptocurrency wallets, but this should give you some food for thought. Stay tuned for information on how to pick a cryptocurrency wallet and more.

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Russia's Putin Releases Presidential Orders Paving the Way for Cryptocurrency Regulation

Russia's Putin Releases Presidential Orders Paving the Way for Cryptocurrency Regulation

Russia has finally completed its legislation for the cryptocurrency, after months of deliberation and conflicting remarks on the subject.

Announced by the Kremlin, Russian President Vladimir Putin released five presidential orders, detailing the use and regulation of bitcoins and blockchain technology. The orders themselves are quite wide and far-reaching, and effectively communicate how blockchain and cryptocurrency users must operate within the Russian economy.

The news follows several oscillating viewpoints from the government insider. Last month, Russia’s deputy finance minister suggested that it was likely that the country would ban cryptocurrency, even though the month before the finance minister had said that there was “no point” in banning cryptocurrencies.

The country is following the United States, China, and South Korea in passing legislation on cryptocurrency, all of whom who have over the last year implement policies related to Bitcoins and Ethereum.

The presidential orders will require cryptocurrency miners - a critical section of the digital currency economy - to register with the Russian government so that the government can tax whatever revenue is generated from the operation.

More importantly, the orders delegate the task of regulation of token sales during ICOs (Initial Coin Offerings) to Russian Prime Minister Dmitry Medvedev and Central Bank of Russia head Elvira Nabiullina. ICOs function similarly to IPOs (Initial Public Offerings) in the stock market, where companies share stock in order to raise capital.

Like the United Kingdom, Russia will also mandate the use of “sandboxes”, where companies will have to test their products and services in controlled environments, in order to determine their effects before being released to the public. Several blockchain companies in the UK are already making use of these sandbox environments.

Lastly, the presidential orders call for a “single payment space for the member states of the Eurasian Economic Union with the use of new financial technologies, including the technology of distributed registries.” Russia may soon release its own form of cryptocurrency, dubbed the “CryptoRuble”. Other members of the EAEU have already adopted national cryptocurrencies.

Critics of Russia’s new regulatory framework for cryptocurrency state that the 13% tax levied on those who cannot prove that cryptocurrencies were obtained legally will allow governments to profit from money laundering schemes and financial crimes.

In any case, the news of another major country adopting cryptocurrency is a move forward for the digital currency. Countries are still experimenting with it, and weighing options on how it ought to be implemented, but the dominoes seem to be falling as more and more countries are passing legislation.

Money Trade Coin will bring you the latest news in cryptocurrency and the blockchain world. Stay tuned for more news and information on how to succeed in cryptocurrency investment.

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The whole secret of successful life is to

find out what is one's destiny to do,

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