Storing cripto currencies safely

By Falsone Giuseppe

Decentralized finance is taking on an increasingly prominent role. The development of blockchains has created endless possibilities providing fertile ground for the growth of cryptocurrencies and tokens, such as NFTs that are revolutionizing the entire world economy.

However, now that cryptocurrencies are real and established market, the need to store them safely, through the use of digital wallets and hardware, is increasing.

In this manual I will teach you how to approach these topics and how to use the necessary tools to ensure the safety of your savings.

• Language: English
• Publisher: Youcanprint
• Release date: May 6, 2022
• ISBN: 9791220398435

Book preview

INTRODUCTION

Today the world is changing fast, the future is already present, the banking system, finance and people's savings will no longer be as we know them. With the event of cryptocurrencies and blockchain has been drastically changed the form of approaching this fascinating world, the importance of it is based on the security of holding digital wallets and how to store their savings, the text explains in a simplified layman to understand the importance and use of these tools.

My name is Falsone Giuseppe, I was born in a country of the beautiful Sicily, ancient and hospitable land. I am an expert in computer security and startup developer in my spare time I work with computer security agencies, with a passion for decentralized finance, I wrote this little book to simplify how to take the first steps to store cryptocurrencies in a safe way to avoid loss of digital assets.

STORING CYPTOCURRENCY

Most cryptocurrencies work on the public-private key pair principle. You can look at the public key like your IBAN, while you can look at the private key like your PIN.

Most advanced digital wallets allow you to manage with more different keys, unlocked with the set of random words (seed) generated when generating the wallets.

These words are the most important credentials you need to store safely. Anyone who has access to security words owns cryptocurrencies unlocked with them.

You remain the cryptocurrency owner if only you have access to the security code or the private key. If others are directing them, the cryptocurrencies are not yours, and you revert to the banks' system.

It's worth noting that the most dangerous vulnerabilities are not in block chain technology or crypto currencies themselves but in the Smartphone, computers, and laptops we use to store and manage our wallets and keys and websites we use to buy and sell our crypto currencies.

This means that all applications you use to access the block chain network are not sufficiently protected against hacker attacks. As a result, read our security recommendations below to discover how to properly safeguard yourself and your bitcoins.

Blockchain technology and crypto currencies have the advantage that decentralized and secure peer-to-peer networks are very well protected against hacks and manipulation. Dramatically increase your computer's security without spending any money. Reflect on your user behavior updates, backups, and strong passwords increase security significantly.

People are the weakest link in the IT security chain. You will often read this or a similar sentence on various IT websites. Although, or rather because we humans can take security measures, we are the least protected from hacker attacks. That's why we must navigate the digital world with caution and develop a sense of which sources and tools are trustworthy.

In the digital world, the Internet plays a major role and crypto currencies. Since the latter are assets, you need to be extra careful because they could easily be stolen without you noticing right away.

Obtaining cryptocurrency is one thing, but properly storing it necessitates a completely new set of skills and understanding. The most significant danger in investing is user mistakes, not hacking or security problems. It's quite simple to misplace the private keys. Hacking remains a severe threat and the methods mentioned here will assist in limiting that risk.

When storing cryptocurrencies, it is necessary to think about several types of possible accidents:

• Physical Attacks:

• Floods

• Firetrap

• Pets and the like

• Online attacks:

• Hacker

• Data loss

• Device damage

Ideal storage should be protective and resistant to most of the attacks listed. Of course, the level of protection it makes sense to secure depends on the amount of money you store in the form of cryptocurrencies.

You evaluate yourself and look for the compromise between safety and ease of use that suits you and allows you to sleep peacefully.

SAFE STORAGE OF BLOCK CHAIN

The blockchain or blockchain is a technology that represents an accounting book where all operations related to the creation or transaction of cryptocurrencies are recorded and stored safely and reliably. It works through a computer network. Distributed, it does not require a central server that only stores the information.

This feature prevents any attempt at fraud by altering the information linked to a transaction. It is not enough to modify the information of a single server. Still, it is required to instantly change the data of multiple computers that make up the network and store the information of an operation, making it difficult for any hacker who wants to alter the system, providing great protection and confidence to the user.

A blockchain allows for the tamper-proof transmission of information by employing a decentralized database shared by many participants to prevent copies. A distributed ledger, or ledger, is another name for a database. It is stored on multiple computers in a peer-to-peer network. Each new node receives a copy of the blockchain when it joins and is now responsible for verifying and verifying transactions.

Someone initiates a process by generating a record (block), verified and stored by thousands or even millions of machines on the network. The verified block is cryptographically encrypted and attached to a chain of data records (blockchain), resulting in many unique data records, each traceable history.

Therefore, blockchains are secure, always up-to-date directories in which digital transactions can be documented reliably and understandably for the participants. They are constantly being expanded chronologically and linearly, comparable to a chain in which all the computers involved are linked as links and constantly expanded to include new links (hence the term blockchain = blockchain).

The technical model of the blockchain was developed within the framework of