The comprehensive guide on how to use a crypto wallet in 2022. Simple way: part 1
Cryptocurrencies are in increasing demand as a tool for earning and saving. The services that allow you to interact with them are becoming easier and more accessible.
Today we will talk about popular crypto wallets and look at the step-by-step creation of an account on Binance and Bitmex.
What is it about?
Blockchain technology allows us to create decentralized applications, which means that they do not depend on any central authority or server. In other words, all transactions take place directly between users without third parties getting involved. This makes blockchain-based systems very secure and reliable.
The main advantage of using cryptocurrencies is their anonymity. You can send money from one person to another without having to give your personal information (name, address, etc.).
You can also store your digital assets offline and access them only when needed. For example, if you want to make a payment, you don’t need to be online to do so.
Another important feature of cryptocurrency is its ability to transfer value quickly and cheaply.
Bitcoin is a decentralized, peer-to-peer digital currency. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto in 2008 and released as open-source software in 2009. The network came into existence on 29 August 2008, when the first transaction was broadcast to the network; this was done using bitcoin's prototype version 0.1 code.
Ethereum is a decentralized platform for applications that run exactly as programmed without any chance of fraud, censorship, or third-party interference. Smart contracts are self-executing and provide the basis for digital agreements between parties.
Cryptocurrency storage wallets
Cryptocurrencies can only be stored on electronic media. This is a basic requirement for using assets. The user can use them to send coins to another account, receive them to his account, and pay for goods and services.
A wallet has two main attributes: a wallet address, which is used as an identifier, and a private key, which grants access to funds. The key must be kept secret to prevent theft.
There are several types of hardware wallets:
- non-custodial wallets (cold storage) - they store your keys online, but do not have any control over them;
- hot wallets - they keep your keys offline, but still require an internet connection for transactions;
- paper wallets - they generate addresses and keys on paper, so there's no need to memorize anything or carry around physical devices;
- USB sticks - they're like paper wallets, except that they're plugged
What to use? Cold or hot wallet?
Short answer: It depends on your requirements.
Cold wallets are a type of cold storage that involves storing cryptocurrency in an offline environment. They can be used for long-term storage, as they provide protection against hackers and malware attacks, physical theft, fire damage, or power failure.
Hot wallets are the most secure way to store your cryptocurrency. They offer better security than regular exchanges or online wallet services, as they keep your coins in offline vaults with strong passwords and protection against malware attacks. However, they can be a bit more complicated to set up correctly than web wallets.
How to create a wallet for digital assets on crypto exchanges
Storing bitcoins on crypto exchanges is convenient for traders and investors who often carry out payment transactions. Please note: it is not recommended to keep large amounts on the trading platform deposit for a long time due to security reasons.
In the first part of the article, we will show instructions for creating accounts on two popular exchanges suitable for intermediate storage of cryptocurrencies.
Exchange accounts, where you can trade and earn money through staking, are also used for asset management.
Binance
Binance is a crypto trading platform launched in 2017 that quickly gained popularity and entered the top services in terms of capitalization and trading volume. Today, Binance provides users from different countries with the tools to send and receive transfers. There is also separate software for transactions in the Binance Smart Chain network, and mobile apps for smartphones and tablets.
Binance Coin (BNB) is a cryptocurrency that was launched in 2017 by the Binance exchange. It has been designed to be used as an internal currency for the Binance ecosystem, and it can also be traded on other exchanges.
Binance Futures is a cryptocurrency futures trading platform operated by Binance. It was launched on September 27, 2018, and has been described as "the world's first regulated crypto-futures exchange". The launch of the platform was announced in an official blog post published on September 26, 2018. The company also released its white paper detailing the project at that time.
The BNB token is the native currency of the Binance Futures Platform. It is based on Ethereum blockchain technology and uses smart contracts to automate the process of buying and selling financial instruments.
Trading fees on the Binance platform depend on the amount of funds deposited into each account. For example, when depositing $10,000, the user will pay a 0.1% commission per transaction
Registration in Binance
To use Binance, you need to register first using the link.
Step 1. In the form, enter an email address and a password that meets the requirements: at least 8 characters long, at least one number, a special character, and an uppercase letter.
Step 2. Confirm the creation of an account by entering the code from the message sent to the specified email address.
Step 3. Go through Binance user verification. Passing KYC is required to use the platform's capabilities and takes about 10 days. You need to indicate the date of birth, full name, citizenship, city and address of residence, zip code, and a valid government-issued document (passport, driver's license). The plus option increases the client's capabilities, including providing higher limits from Binance.
Step 4. After passing the verification in the "Wallets" section, use the "receive" function to make fast P2P transfers. You can withdraw funds using a bank card or SEPA fast international payments. Binance takes 1% as transaction fees on average.
In the "History" section, you can view the details of previous transactions.
Bitmex
Bitmex It offers progressive tools for dealing with digital assets, including futures.
It allows traders to trade Bitcoin, Ethereum, Litecoin, Ripple, Dash, Monero, Zcash, IOTA, and many others. Bitmex offers leverage up to 100x and margin trading.
You can deposit money via credit cards, wire transfer, SEPA, Neteller, Skrill, InstaDebit, PerfectMoney, Webmoney, Yandex Money, OKPay, Payeer, and Western Union.
There are no commissions on deposits and withdrawals. However, there is a fee of 0.25% for all trades.
Registration in Bitmex
First, go to the main page and click on "Sign Up", then fill out the registration form. Please use an email address and a password of at least 12 characters. Confirm registration and login into your account. Personal identification is required. It takes place immediately after registration and takes about 24 hours.
Verification requirements:
- Personal identification card;
- Selfie;
- Payment method verification;
- Residence certificate or browser data to confirm the location.
After verification, you can use the built-in Bitmex wallet (funds are stored in a cold way, which provides a higher level of security in the event of a hack). The Bitcoin on the service's website is called XBT: you can buy it from a card for dollars or other cryptocurrencies, as well as receive transfers from third-party platforms.
That is all for today. Don't forget to read the continuation in the next part.