In case you were not aware, I do not know much about cryptocurrency. Sure I have made a couple of posts regarding ICOs, but, the reason I did those posts was that I saw these free coin giveaways as an opportunity to "get into" cryptocurrency and by investigating these ICOs such as SwiftDemand, CCRB, Synapse AI, and others I have begun to cross the "knowledge swamp" of cryptos, though I still have a ways to go. In other words, by writing about these ICOs, I have begun to educate myself about cryptos.
One thing about Bitcoin, cryptocurrencies and the blockchain technology that I have learned is that while these three things are related to one another, they are not the same thing. James Corbett of The Corbett Report, one of my goto trusted journalists has this to say about the subject.
If you are new to these concepts, this video is an excellent source of clarification.
So, now you get that not all cryptocurrencies are the same and digital currencies are not cryptocurrencies and the blockchain technology has a wide range of applications that go beyond cryptocurrencies. One should also be aware that when it comes to ICOs, they cover the spectrum from legitimate to spurious scams, some have good concepts others not so.
Signs that an ICO is not trustworthy.
-they lack a white paper
-they make outrageous claims regarding profits and gains
-there is no human face to the founders or developers of the project
-source code is not open
It is highly recommended that one comprehend that the blockchain technology is a decentralized ledger system that can be used as either a public system, as in cryptocurrencies such as Bitcoin, without a central authority or in a private system where control of an electronic wallet(hardware or software) is maintained and controlled by a central authority such as a central bank. The blockchain technology is a revolutionary technology and like any powerful technology, it can be used for either good or bad.
One of the reasons I like Steemit so much is that it is an example of the blockchain technology being used for good and as such it is a vanguard of the BLOCKCHAIN REVOLUTION. This is a revolution that has been slowly evolving since the dawn of the internet, from Bulletin Boards back in the eighties where information was shared freely, to Torrent files allowing for decentralized peer to peer sharing to the BLOCKCHAIN REVOLUTION of today.
"The future is here now.....it just isn't being very evenly distributed." ~ William Gibson
I ran across this quote on the White Paper for Synapse AI and I love it because it paints a very accurate picture of the present state of access to technology.
So, I have now come to the next stage of my education on cryptocurrencies and I feel that I require a wallet. Being as I am just starting out in this endeavour I will opt for just a software wallet. Later, as I accrue some cryptocoin and feel it justifiable I will explore hardware wallets prior to purchasing one. There are a number of soft wallets available and in two categories. There are, in simplistic terms desktop wallets which reside on your computer and there are web wallets, which reside on the web. The last kind of wallet available is a paper wallet and this can be as simple as printing public and private keys on a piece of paper and is often referred to as cold storage. Except in the case of using online printing services, the paper wallet is essentially unhackable. But being just a piece of paper, it could easily be lost.
DESKTOP WALLET
-exists as a package of software on your computer usually provided by the cryptocurrency project
-often specific to a particular cryptocurrency
-usually requires a full download of that cryptocurrency's blockchain data
-give the user access to all the functionality that cryptocurrency has to offer
-grants access to user's public and private keys and the wallet's seed
-allows user full control over security
-not very convenient for on the fly purchases
ONLINE WALLET
-exists in the cloud usually on a cryptocurrency's website
-accessible by any device via a web browser
-convenient and easy to use
-less secure than Desktop wallet
-requires trusting of anonymous individuals
-more convenient for on the fly purchases
-not trusted for long-term investments
DESKTOP WALLETS
Most of these wallets are available for Linux, Mac and Windows,
BITCOINKNOTS -" is a full Bitcoin client and builds the backbone of the network. It offers high levels of security, privacy, and stability. It includes more advanced features than Bitcoin Core, but they are not as well-tested. It uses a lot of space and memory."
BITCOINCORE-" is a full Bitcoin client and builds the backbone of the network. It offers high levels of security, privacy, and stability. However, it has fewer features and it takes a lot of space and memory."
GREENADDRESS-" is a user-friendly multi-signature wallet with improved security and privacy. At no time are your keys server side, even encrypted. For security reasons, you should always use 2FA and the browser extension or Android App."
ARCBIT-" is designed to be simple and easy to use, while giving users full control over their money. It offers an optional cold wallet storage feature with the ability to authorize payments offline for enhanced security."
MSIGNIA-" is an advanced yet easy-to-use wallet featuring speed and simplicity, enterprise-level scalability, and strong security. It supports BIP32, multisignature transactions, offline storage, multidevice synchronization, and encrypted electronic and paper backups."
ARMORY-"is an advanced Bitcoin client that expands its features for Bitcoin power users. It offers many backup and encryption features, and it allows secure cold-storage on offline computers."
BITHER-"is a simple and secure wallet on many platforms. With special designed Cold/Hot modes, user can easily get both safety and simplicity. Bither's XRANDOM uses different entropy sources to generate true random number for users. Also with HDM, users can have HD's advantages and Multisig's security."
ELECTRUM-"Electrum's focus is speed and simplicity, with low resource usage. It uses remote servers that handle the most complicated parts of the Bitcoin system, and it allows you to recover your wallet from a secret phrase."
WEB WALLETS
"Coinapult's wallet is designed with Bitcoin newcomers in mind. It allows sending bitcoins via email and SMS, and a handy tool called Locks helps protecting your balance from Bitcoin price swings. Users can Lock bitcoins to Gold, Euros, and more!"
"GreenAddress is a user-friendly multi-signature wallet with improved security and privacy. At no time are your keys server side, even encrypted. For security reasons, you should always use 2FA and the browser extension or Android App"
"BitGo is a high-security multi-sig wallet, which protects your bitcoin from theft and loss. You maintain full custody; BitGo cannot spend or freeze funds. BitGo wallets are easy to use and offer advanced security features such as spending limits and multi-user access"
"Coin.Space HD Wallet is a free online bitcoin wallet, which you can use to make worldwide payments for free. It makes paying with bitcoins easy and secure available anywhere on your phone or desktop."
The above links and quoted "descriptions" provided by Bitcoin.org
Follow any of the links above for more information regarding these Desktop Wallets and Web Wallets.
Which wallet will I wager on?
This will take some time to figure out for each has their own pros and cons. Off the top 'GreenAddress' intrigues me as it has both a web and a desktop service. Its weakness it seems to me is its reliance on a 'third party' which raises trust issues. It seems Bitcoinknots and Bitcoincore are the two most reliable(based on this review) providing control over your money, full validation, complete transparency, improved privacy and full control over fees.
As for Web Wallets they all suffer from the same trust issue of using third party validation while Bitgo and GreenAddress do provide two-factor authentication.
If security is number one for you and you do not mind the cost a hardware wallet is best. Regardless of which wallet you end up using it is YOUR resposibility to secure your wallet and key to this is protecting your private key.
I hope this post has been informative and has provided you with a stepping stone to get through this knowledge swamp that is the world of cryptocurrencies. If you have any experience with any of the wallets listed above I woule love to hear from you, so please share your experiences in the comments below.
As they say on bitcoin.org..."Take the time to educate yourself."
This post in no way is to be construed as financial advice. always do your due diligence priot to investing and always invest only that which you are willing to lose.
Be a part of the BLOCKCHAIN REVOLUTION.
Thank you for reading.
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Peace
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