Why should we not in cryptocurrency?

This is the newest part and the one that generates the greatest rejection among laymen of this subject.

Cryptocurrencies are made up of two different keys , like a bank account: On the one hand, we have the public key, which is the equivalent of the traditional account number, and which we can give to anyone who wants to send us money. On the other hand, there is the private key, which is the one with which we access our account and have full control of the funds.

Build a cross chain bridge The same thing happens with cryptocurrencies: We have a public key that we can send and show to whoever we want, since there is no risk; and a private key , which, obviously, we cannot show to anyone, since we would be giving up control of our money.

The problem is that, when we, in traditional banking , leave our euros in the bank account, we are giving control of those funds to the bank, and if tomorrow there is a corralito , or the bank goes bankrupt, we can do a lot to avoid it and it will be impossible, or at least very difficult, to recover our money .

In the same way, if we choose to leave our example bitcoins in the exchange , we do not have any key to those bitcoins, they simply store them, and we would be exposed to the same risks that we have with a bank account.

Web wallet and App wallet :

The web wallet and app wallet use constant hot storage , so the security level drops a lot.

For my part, I strongly discourage them , except for very small amounts.

Some web wallets are Coinbase Wallet , Blockchain Wallet , and Kraken Wallet .

Among the best known apps, I would highlight , BRD and Bitcoin Wallet .

hardware wallet

The hardware wallet is a device similar to a flash drive, where we can send our funds and store them.

This device, being disconnected from the network, has great security , although it must be connected on time to send and/or receive coins.

It is protected by a password that is entered from the device itself, so the risk of hacking is almost non-existent.

Of course, it can suffer the same fate as a paper wallet, and that is, if it breaks or is lost, and we have not kept a copy of the keys , we could lose what it had stored.

The most famous hardware wallets are those of the Ledger brands .

Build a token bridge Both paper wallets and hardware wallets are a type of wallet that does not have Internet access. That is why they are known as cold wallet or cold wallet. The others would be hot wallets, since they are connected to the network in one way or another.