As a result of the growing use of cryptocurrencies as a financial instrument in recent years, more and more people are looking for secure solutions to store their digital currencies. However, one can get the impression that still a large percentage of crypto users seem to ask the same question over and over again: “Why?”. That is why today we will discuss the idea of care for cryptocurrencies, believing that only in this way do we really fully control them. Enjoy reading!
In conventional finance, a fiduciary service is where securities are held by a bank in the name of a person to protect them. Or better security. Crypto users have at their disposal the so-called exchange wallets. In their case, cryptographic assets are deposited in a central wallet that is under the authority of the provider (i.e. the cryptocurrency exchange).
Does this clearly mean that you have no control over your funds? Not necessarily. However, it’s hard not to agree that they are “ours” to a lesser extent. Coming back to the comparison with traditional banking: the money in your bank account is both yours and the bank’s. But when you withdraw them in the form of cash, you become their rightful owners.
As an alternative, there is self-control of owned cryptocurrencies. Don’t get us wrong. Especially for novice users of the crypto world, an exchange wallet is synonymous with convenience and a minimum entry threshold. With the acquisition of knowledge, capital and sophistication, the cold wallet is nevertheless abandoned (or used simultaneously) in favor of self-custody cryptocurrency wallets.
A self-custody cryptocurrency wallet can be both software and hardware for multifunctional use of digital currencies. It can be used not only to store cryptocurrencies, but also to carry out transactions with them without the participation of a superior authority. In other words, we are dealing with a tool that provides care for your cryptocurrency.
This has gained particular importance in the face of fears of bankruptcy of other industry enterprises, after FTX. According to the principle of “precautionary always insured”, people decided to do their best to protect their digital assets against dirty tricks from stock exchanges, or simply against their bankruptcies. What’s worse, the pool of threats is being joined by more and more intensive hacking attacks and methods like phishing, and these mainly work to the detriment of ordinary users.
There are two variants of this type of wallet:
Cold wallet – a cold wallet is not connected to the Internet by default, which is why it is considered the most secure variant for storing cryptocurrencies. Usually, in this case, we define it as a hardware wallet, which is a physical device (resembling a flash drive) that allows you to safely store private keys. The most popular manufacturer of hardware wallets is Ledger. In addition, you can always write private keys on a piece of paper – then we “create” a paper wallet.
Hot wallet – it is constantly connected to the Internet and is intended for people who perform many transactions during the day (and who are not in a hurry to transfer funds between devices online each time), and thus value convenience. At the same time, this variant does not provide such security as the cold wallet. It is available in the version for desktop computers (as an application that can be downloaded and configured), web browsers and mobile applications.
Some of you may now rightly ask: “Then what’s the point of using the Kanga Wallet app in the face of the advantages of other variants that allow you to store digital currencies?”.
We have never hidden that Kanga is a place for all crypto enthusiasts, but above all it is a place of implementation for people who are just getting acquainted with blockchain technology and the opportunities it offers. That’s why we’ve made sure that Kanga Wallet provides everything you expect from a starter app for new users.
What are we talking about? ABOUT:
In addition, it is thanks to Kanga Wallet that it is most convenient to use Kanga Kantor points and make exchanges with Kanga Local users. Nothing more nothing less.
Of course, we don’t want to obliterate the message of the text above. Simultaneous use of an exchange and external wallet seems to be the optimal solution to take care of your cryptocurrencies.
Thank you for reading! For those who have arrived here, we have prepared the “WALLET” code reducing the transaction in exchange points by 0.25% (valid until August 3!).