Types of Crypto Wallets Used by Crypto Enthusiasts

Now that we know the terms used by crypto wallets users let’s dive to know more about the kinds of crypto wallet and their unique features. In case you missed our last post on terms used by crypto wallet users, here is the link.

If you are new to Crypto wallets and interested to know What are crypto wallets and How crypto wallets work, please check our last post here.

Types of Crypto Wallets

Crypto wallets are mainly categorized based on their storage, combination of public and private keys, accessibility, etc. Here are different types of wallets that are quite popular among crypto enthusiasts –

Paper Wallet

A paper wallet is a cold wallet used to store digital currencies. The process of accessing a paper wallet involves the printing of public and private keys on a sheet of paper. The keys are generated via open source wallet generator available like – BitAddress.org, WalletGenerator.net  and BitcoinpaperWallet.com. As experts recommend users generating a paper wallet should unplug their internet and wipe the history after the keys are created to assure security and avoid hacking of your wallet.

Types Of Crypto Wallet - Paper Wallet
Image Courtesy – @fastinvest

 

Desktop Wallet

Any firm dealing with cryptos or digital currencies would launch his Desktop wallet for the convenience of its customers. Desktop Wallet are installable’s that could be installed on your laptop/desktop. As a desktop/laptop is mostly connected to the internet, you would need extra layers of security measures to protect your wallet like antivirus, firewalls, etc. Some of the leading desktop wallets available in the market are – Electrum and  Bitcoin Core.

Mobile Wallet

With a need to access from any time and anywhere, Mobile wallets have gained popularity in the crypto world. The working is similar to the desktop wallet and provides hot storage both for Android and iOS versions. However, before installing a crypto wallet on your phone make get a review on features like Private keys, ease of use, security, back up and most importantly the development community if it’s active or not. Some of the mobile wallet available are – MyCelium, Edge

Online Wallet

The least secured wallet that offers hot storage is Online Wallet as they are always connected to the internet. The private keys are held in your browser and hence prone to DDOS attacks. They could be categorized further to hosted online wallets like Cex.io and coinbase or non-hosted online wallets like Metamask and myetherwallet.

Hardware Wallet

The most secure of the lot that offers cold storage and is a bit technical in terms of usage. As the name suggests, they are the hardware explicitly built to handle public and private keys. You can imagine as a USB drive as your wallet that would go online only when you connect it to a laptop for a transaction, hence secured and in control. Some of the examples of hardware wallets are Ledger Nano S and Trezor.

Did you explore any other crypto wallet? We would love to know about it. Please share your story with us on Twitter [@getnuo].

References

investopedia ; coinsutra; hobowithalaptop; @fastinvest

Vimba backed up by New Zealand government; founders believe Bitcoin Will Be Worth $600,000

Callaghan Innovation a government innovation arm in New Zealand supporting Vimba, formerly known as Mycryptosaver is focussing on crypto savings services that allow users to put their money into Bitcoin in small weekly amounts. As per the statement released by CEO Sam Blackmore, the government savings would be utilized to build crypto wallets and to expand the digital currency offering on the platform. The founder also believes that Bitcoin will ultimately be worth $600,000, however, discourages day trading and swing trading 

Read more here at newsbtc.com

BitGo Crypto Wallet Integrates Digix’s Gold-Backed Cryptocurrency

BitGo’s that attracted players for their patented multi-signature wallet technology is partnering with Digix to bring their DGX gold backed stablecoin. Digix that digitizes physical gold in a secure and trustless manner by backing every DGX by one gram of gold from London Bullion Market Association-approved refiners. The startup is adding compatibility with a gold-backed token whose value is not subject to the wild volatilities of the cryptocurrency world or foreign exchange fluctuations. The integration of Digix also helps deepen liquidity of its ecosystem that currently support 85 cryptocurrencies. This stable-price coin is particularly useful for payments, loans, and anything that requires a more stable store of value.

Read more here at digitalcoinowner

MapleChange Crypto Exchange Hacked

As per a post on twitter an exchange MapleChange said – that “due to a bug,” an unnamed group of individuals managed to withdraw funds, adding that it is conducting a “thorough investigation” and will be unable to make refunds.”

After the “investigation,” MapleChange decided that it would be unable to pay its users back, divulging that “the exchange has to close down, unfortunately. This includes all our social media.” While the first part of the statement is logical, the second comment led many to raise their eyebrows, so to speak, in suspicions that this hack isn’t cut and dried.

Read more at businesscryptonews

Japan’s Financial Services Agency limiting caps on Crypto Margin Trading?

Japan’s regulators are considering stricter limits on margin trading of digital currency as reported by Nikkei. To curb speculative trading and limit user exposure to volatility risks, Japan’s Financial Services Agency is considering leverage caps for margin trading of cryptocurrencies.

The push to regulate came in response to concerns by many users. With a theft with Coincheck early this year FSA received a lot of inquiries, and this move is just to reduce risks and improve user protection.

Read more at Asia.nikkei.

How Crypto Wallets Play a Vital Role in Crypto Margin Trading

Crypto Wallets are the essential part of crypto margin trading. These crypto wallets are provided by the crypto exchanges are used for trading leveraged short and long positions and for providing margin funding/financing to other traders. The funds are instantly transferred from one wallet to another assisting is a smooth trade. So what else does the crypto wallet help with, the Margin Traders? Let’s explore about Crypto Wallets and their place in Crypto Margin Trading

What are Crypto Wallets and How it works?

A cryptocurrency wallet or Crypto wallets is a software program that stores the public and private keys, interacting with different blockchain to allow individuals to send and receive digital currency and view their balance. If you are keen to use any digital currency, one of the prerequisites is to have a crypto wallet or digital wallet.

The working of cryptocurrency wallet cannot be compared to a physical wallet. The crypto wallets do not store currency, unlike the wallet you carry in your pocket. When an individual sends a digital currency to say ETH, he is actually signing off his ownership from that coin and assigning new ownership address of yours. To access these coins and spend it or use it for crypto trading the private key that is assigned to you should match the public key available for ETH. Once the match is made, the account balance would increase and that for the sender would decrease. There is no real exchange of coins, only a transaction record on the Ethereum blockchain and a change in account balance of the sender and receiver.

Crypto Wallets in Crypto Margin Trading

In the market, many types of crypto wallets available are categorized as Software[subtype – Desktop, mobile and online], Hardware, Paper wallets. Each of them differs in a way they are accessed and utilized.

But the most crucial categorization of wallets for margin traders is Hot wallets and Cold storage. This could be applied to any crypto wallet. Both of the strategies are a measure of tightening the security by exchanges to safeguard funds from hackers. Both cold storage and the hot wallet are security measures put in place by exchange platforms to safeguard user funds from any mishap.

Cold storage wallets are wallets that are offline most of the time and can be accessed only when the user wants to make a transaction, putting away the risk of being hacked. Example of a Cold storage wallet would be Hardware wallet that is accessed via USB drive and can be put on offline mode easily. Crypto Margin Traders could use this Cold storage when making a margin trade. It not only helps the funder/lender but even the trader to put his collateral in a secure way.

Hot Wallets, on the other hand, refer to “liquidity in hand” by exchanges in case there is a sudden request of withdrawals. Just imagine a bank in your neighborhood keeping “cash handy” for withdrawals. Example of hot wallets would be an online wallet or desktop wallet. So for Margin trading in case, a margin call is made, and the borrower is not able to fulfil or top-up his wallet, the exchange would release the collateral from the hot wallet to the lender.

While the experts recommend usage of Cold Storage, hot wallets are still to be used whenever the need arises. Would you like to share your crypto wallet story with us? Please post on to our twitter account

References

Dummies, blockgeeks.

The hivr wallet isn’t just a wallet – it’s a social media platform for Bitcoin BCH

Hivr which is still under the beta testing mode for Android has attracted many eyeballs due to its unique offering of – a wallet, native tipping, a social news feed, and an instant messaging platform. The best feature is posting of social media post/status for free.

Once the user has registered, he/she can configure their interest, post that a BCH wallet is created for the user.  The wallet allows individuals to share posts to their feed and accepts GIFs, photos, media files, text posts, and URLs. The instant messaging feature will enable users to interact one on one or initiate a group chat. Under every post is a “gift box,” which allows a user to tip BCH to others.

Read more at coingeek

Trading Bots – Could they help in Crypto Margin Trading?

Most of the crypto Traders look for passive income owing to the nature of the market. The market shifts are so random and quick that an investor could lose all his money if he did not act on time, that’s where Trading bots come handy and have been evolving in functionality and sophistication. Our post of today would talk about the trading bots and their role in Crypto Margin Trading. Let’s get started –

What are Trading Bots?

Just as Algorithmic Trading is used by the buy-side in equity, currency or commodity markets, Trading bots that first appeared in FX or foreign exchange market, are now making their way into the cryptosphere.

A Trading Bot is nothing but a piece of code or software or a computer program that takes various indicators as inputs, analyzes the trends and market sentiments, and automatically executes your orders. Bots are a unique form of Artificial Intelligence or AI that answers your queries, shares information, perform actions and you may even not now it’s a computer program.

Bots are designed to improve over time, based on their past decisions and results they have the intelligence to refine themselves and provide precise answers/appropriate action.

Rewards of Trading Bots

One of the primary advantages of Bots is the reason for their evolution. They came into existence to make quick and precise decisions. We all are well aware of the fact that crypto world never sleeps and even a light rain shower could move the candlestick up or down, so irrespective of whether the trader is active or passive he needs to be watchful and be alert and active 24*7 is humanly impossible, then why not ask a piece of code to work for us.

Bots are the “trader” that knows the necessary data, patterns and exactly when to trade — and when not to.

Risks of Trading Bots

While Trading Bots help you to analyze patterns and get insights to indicators, they do not help you to choose trades. Which trade to pick is something you as an experienced trader need to learn yourself. So, it comes with a risk of what if you chose a wrong trade and the bot would only take it a step further may be towards gain or loss.

Another disadvantage that is associated with Trading bots is given the nature of the market; the program is yet not mature to know all the combination and probabilities of an event happening and make a decision that shows a gain. The technology is evolving, and so they need to have a working knowledge of how the market works to make the right decisions.

Trading Bots assisting in Margin Trading?

There are many Trading bots available on crypto traders to assist with Crypto Margin Trading, and each has their own distinctive features. Listing down few of them based on the popularity [ Please use these strategies at your own risk]

Optibot Margin

A premium strategy can be used at Bitfinex and Poloniex follows early trends rather than predicting the future. The bot will buy when the market is gaining momentum and sell when it’s dropping. You can know about its features and uses here.

 

Wave Trader Margin

Another premium strategy that can be used at Kraken, Bitfinex, and Poloniex is a trend bot that has built-in safe scalping. For the novice, it can be run on default settings with minimal effort. The strategies have been tuned across many coins and exchanges. You can know about its features and uses here.

While the Trading Bots sound like an effective trading strategy, it is challenging to gauge their actual performance, and no bot provider would ever provide this. In Arbitrage trading, these bots could be quite useful and have a distinct advantage as they can quickly learn about the slightest price movement and make a decision and keep scanning for such price differences across geographies. However, as the strategy gets complicated and affected by more inputs, it gets tough to rely on a computer program entirely. So, make sure to trade cautiously and be fully aware of the actions performed.

Nexo adds support for Bitcoin Cash

Nexo, the crypto lending firm from Switzerland has announced adding support for bitcoin cash [BCH] as a plan to expand their service offerings. Quite recently the firm added Ripple’s XRP and now support Litecoin and bitcoin cash. The coins BTC, ETH, BNB, and NEXO, would grant cryptocurrency holders the ability to borrow anywhere from $1,000 – $2 million. In case the user requires access to capital, rather than selling their Bitcoin Cash, individuals can lock Bitcoin Cash in the NExo Platform, before retrieving their coins once their loans have been repaid.

All the BCH holders will be able to stake their cryptocurrency as collateral and obtain instant funding in more than 40 fiat currencies.

 

Read more at bitcoinschannel

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