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Cryptocurrencies: what they are, wallets and payments

03/02/2022

Cryptocurrencies are digital currencies protected by cryptography, which makes them impossible to counterfeit or duplicate. These virtual currencies are not regulated by central government bodies, but are controlled by the body that issues them according to its own rules.

We know cryptocurrencies better

Cryptocurrencies use blockchain technology – a structured database in the shape of a block chain. Each block contains a series of information that cannot be modified in any way, thus guaranteeing a level of security that protects the digital coins in the wallets.
Cryptocurrency can be exchanged in peer-to-peer mode : transactions take place between two devices without the need for intermediaries, just like a normal paper or bank currency.

Digital coins have been present since 2009 with the birth of Bitcoin , the most popular cryptocurrency. There are others, such as the digital currency Ethereum, especially famous for the purchase and sale of NFT projects.

Type of wallet for cryptocurrencies

Cryptocurrencies need a wallet : a wallet that will allow you to store, control and track your digital currencies. Generally, the most popular ones have an official wallet (eg Binance , the wallet generated by Bitcoin ). A wallet will still allow you to collect different types of virtual currencies, giving you the possibility to create a diversified portfolio . There are several types of wallets to store cryptocurrencies, let’s see them together:

Non-custodial wallet : through a software or a program that you can directly download on a digital device, you will manage your cryptocurrency in full autonomy. Simply create an account in any of the programs present (eg. Metamask or Trustwallet ), using a personal email and creating a password. Warning: you will have to jealously remember the keyword you choose because if you lose it you will no longer be able to access your wallet.
Hosting wallet : this type of wallet will give you the opportunity to be supported in the management of your cryptocurrencies. In fact, a third party will manage them for you and the advantage is that you never have to worry about losing your wallet: even if you forget your password, you will still be able to access it. Furthermore, wallets are often “hosted” directly on the exchange, a virtual platform that allows you to buy, sell and exchange cryptocurrencies (eg Coinbase ).

Hardware wallet : you can choose to buy a cryptocurrency and keep it on a physical device. Hardware wallets are similar to USB sticks that will allow you to keep them safe, especially from potential hackers.

After choosing and creating a wallet, you can buy cryptocurrencies through your bank account or credit card. If you already have them, you can choose to transfer them to a new wallet, physical or digital.

How to choose the best cryptocurrency wallet?

The choice of a wallet will mainly depend on your level of familiarity with cryptocurrencies. Now let’s see together the general characteristics to be taken into consideration for the choice.

Security and privacy : Protecting your data and currencies is important, and each wallet has different methods to keep them safe. A digital wallet with multi-factor authentication is the right choice and thanks to the use of multiple passwords it guarantees greater protection. Remember: all transactions must be anonymous and untraceable.

Accessibility: the choice of wallet will also depend on how you intend to manage your currencies. If you always intend to use your PC to access cryptocurrencies then a hardware-type wallet is more advisable. If you plan to use them also on your smartphone, wallets accessible via browser or App are more recommended.

Commissions: usually, for transactions with cryptocurrencies, each wallet sets commissions that can be both automatic and customizable. When searching for a wallet, look for the one that allows you to minimize the cost of commissions while still guaranteeing maximum security.

Customer Service : Most wallet companies offer 24/7 support. It is important to inform yourself about the level of assistance that is offered to you by the reference company.

To have a positive experience with cryptocurrencies it is important to select the best wallet, so be careful with your choice!

Much easier than you think

While it may seem like a complex process, creating a wallet and using cryptocurrencies for your payments is as easy as setting up a bank account and paying with your credit or debit card.

With cryptocurrencies you can carry out any type of transaction, even dive into the world of investments and trading. Many products and services can be purchased with virtual currencies and for some years it has been possible to pay in numerous physical stores, even in Italy.

We at Sniper are ready to immerse ourselves in the world of cryptocurrencies. Soon, our customers will be able to pay for our services through digital currencies as well.
Innovation is our source of inspiration! To stay up to date on the world of cryptocurrencies and not, visit our blog and our social channels Instagram , Facebook and Linkedin.

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