Today, more and more people are immersed in the world of bitcoins, altcoins, exchanges and other electronic currencies that they never thought of before. And they do not always have enough knowledge in this area to fully minimize the risks.
And the risks are not just the risks of trading on exchanges or the high volatility of cryptocurrencies. The topic of today's article will be a purely technical but fundamental question - which wallet (or wallets) to choose for the cryptocurrencies you need? We will also look at the IQ Wallet review to understand how to use IQ Wallet.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a device, physical medium, program or service that stores public and/or private keys.
In addition to this primary function of storing keys, they more often also offer encryption and/or signing of information. Signing can, for example, lead to the execution of a smart contract, a cryptocurrency transaction, an identification or a legal "document" signature.
What cryptocurrencies exist?
There are thousands of them. Yes, it all started with bitcoin, which appeared in 2009. The boom in the popularity of digital coins started three or four years later. And now there are a huge number of types of cryptocurrencies traded on the biggest exchange.
Anyone advanced in technology, even a schoolboy, can write their own cryptocurrency. And this is not a metaphor: technically savvy schoolchildren do create their own cryptocurrencies. Cryptocurrencies are written in much the same way that programs are written.
The "ready-made" digital coin needs to be put on an exchange for users to buy it. And preferably not just one exchange, but dozens: just like it is more profitable for a farmer to supply milk to ten shops rather than just one store. And the more people who buy your cryptocurrency, the higher its value will rise.
Why cryptocurrency? What can you buy with it?
Cryptocurrencies are bought by people who hope to make good money on their growth. For example, bitcoin was worth $100 in 2014 and then held steady for a long time at no more than $200, and now it's worth a huge amount of money.
Financiers call buying cryptocurrencies the riskiest but also the most profitable type of investment.
How a cryptocurrency wallet works: public key, private key and sido phrase
A cryptocurrency wallet consists of a public key and a private key.
The keys are a long sequence of characters. Whoever holds this pair can do whatever they want with the account.
What is a public and private key?
A public key is the identifier of your wallet, simply put, its address on the blockchain.
The public key is known to everyone in the system and is given to you when you ask someone to send you cryptocurrency.
The private key is used to confirm transactions. In simple words, it is a password that you enter to make a transaction.
A passphrase is a sequence of random 12-24 words that will help you recover your private key if you lose it.
Crypto-wallet: attributes and classification
One of the most important issues is cryptocurrency storage.
Every cryptocurrency wallet necessarily contains two keys:
The public crypto-purse is the wallet's address and works similarly to a bank card number.
The private key acts as a password. It must be secure to keep your cryptocurrency funds safe.
Depending on how the cryptocurrency is stored, there are "hot" and "cold" digital wallets.
All transactions take place on external services in' hot' crypto-purses, and the private key is stored where the software is installed to handle the funds. When working with a cold crypto wallet, the software must be installed on your device, and the private key is stored on a removable external medium.
Basic types of crypto wallets
To understand how to use IQ Wallet and other wallets, you need to understand what types of wallets.
So, there are five basic types of crypto wallets:
- Software - is downloaded to your computer.
- Hardware - separate device (portable or stationary) not connected to the Internet.
- Paper-based - paper medium with a QR code is used to store keys.
- Online cryptocurrency wallet - works as a service on the Internet and is accessed via a computer browser.
- Mobile - a unique application optimised for smartphones, tablets and other mobile devices.
When choosing digital currency wallets, one should be guided by the purpose and frequency of use. It is better to use a cold cryptocurrency wallet for storing large amounts of cryptocurrency, as it is highly secure. On the other hand, a "hot" wallet is a better choice for frequent transactions of small quantities.
What is an IQ Wallet?
IQ Wallet is a secure multi-currency crypto wallet that allows users to buy, store and exchange cryptocurrencies.
IQ Wallet is the best way to get, send, store and exchange Bitcoins, Ethereum, Tron, BNB and many other cryptocurrency. Moreover, your founds are secure thanks to non-custodial storage and BIP39 recovery protocol.
What benefits does the wallet have?
Multi-currency - support for major coins and network tokens. Storage, sending and receiving of 50+ crypto assets with expandability.
Reliability and security - non-centralised storage with the direct upload of wallet private keys.
Built-in exchange is an easy one-click swap of crypto assets directly from the app with no registrations or verifications.
What does IQ Wallet have to offer?
Different crypto wallets offer other functions. So what features does IQ Wallet offer its users?
Crypto asset swap direct from the app
IQ Wallet's crypto-asset exchange solution combines the advantages of decentralized (DeFi) and centralized exchanges. Uninterrupted control of your assets on the one hand and the ability to swap coins, tokens from different blockchains without restrictions on the other hand.
- The exchange is done through the actual sending of a blockchain transaction with the physical delivery of the crypto asset through a counter transaction.
- No forms, documents, selfies, KYC verification is required.
- Interchain exchange between different blockchains is supported, including swapping the same project between networks.
- Fixed exchange rate for the exchange duration with recalculation after the time limit is reached.
- No daily/weekly/monthly exchange limits for user.
- Ability to provide liquidity to own token - MarketMaking (feature in development).
Killer feature: adding your token
IQWallet supports adding any token in ERC20, BEP20, TRC20 networks.
All you need to do is enter the Smart Contract address of the respective token.
When any user adds a new token, the token appears for all Wallet users in the Finder.
Thus IQ Wallet works on the principle of all assets in one place, supporting all tokens of the major networks.
This functionality is in a state of development
Offer for partners
An excellent opportunity to earn money for the users and their friends. If you refer users to IQ Wallet, you will receive a percentage of their transactions.
- Affiliate gets from 30% to 50% of the spread referred clients pay.
- Average spread is from 3% to 5%, depending on the currency pair. Thus the partner earns 2-3% from the trade turnover of attracted users.
- All partners receive Affiliate accounts for accounting of affiliate groups and accrued remuneration and individual affiliate links for attracting Users.
Why can IQ Wallet be stored safely?
How to use IQ Wallet in India securely? What provides security?
- Directing crypto wallet private keys directly from the application with secure unloading function and BIP39 independent key recovery protocol by mnemonic phrase (PASSphrase).
- IQ Wallet - non-custodial wallet with independent wallets created for each user. Wallet balances can be checked in any blockchain scanner and will always match the balance in the App.
- A server PIN for the App, which the app owner sets at setup time. The PIN cannot be bypassed locally without knowing the PASS phrase.
- Biometric protection as an alternative to PIN authorization of significant actions in the App.
Modern security methods guarantee the security of your crypto-assets and secure the use of your wallet.
What type of crypto wallet should I use?
There is no clear answer to this. If you trade frequently, a web wallet will allow you to access your funds quickly. If you've taken extra steps to secure your account with two-factor authentication (2FA), your cryptocurrency is generally secure.
But suppose you are storing large amounts of cryptocurrency that you don't intend to sell yet. In that case, cold wallets are a better option because they are not connected to the Internet and are more secure and resistant to phishing attacks or fraud.
Cryptocurrency wallets are an integral part of life for those who use bitcoin and other cryptocurrencies. They are a major piece of infrastructure and allow you to send/receive funds via blockchain networks. Each type of wallet has its own advantages and disadvantages, so it is important to understand how they work before using them. The more attentive you are to all aspects, the less you risk your money. Also, with care and extra knowledge, you increase your chances of not only storing crypto-assets, but also earning. Have faith in your abilities, learn how to invest and store your assets wisely. Good luck!