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Cryptocurrencies are usually built using blockchain technology – Blockchain describes the way transactions are recorded into “blocks” and time stamped.

It’s a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that’s hard for hackers to tamper with.

In addition, transactions require a two-factor authentication process. For instance, you might be asked to enter a username and password to start a transaction. Then, you might have to enter an authentication code sent via text to your personal cellphone.

Studies have shown that despite increased awareness of Blockchain and Cryptocurrency technologies, there’s still a general haziness about how it all fits together.

One prominent question: How do you store cryptocurrency after you purchase it?

Once you have purchased cryptocurrency, you need to store it safely to protect it from hacks or theft. Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely.

Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for you.

There are different wallet providers to choose from. The terms “hot wallet” and “cold wallet” are used:

  • Hot wallet storage: “hot wallets” refer to crypto storage that uses online software to protect the private keys to your assets.
  • Cold wallet storage: Unlike hot wallets, cold wallets (also known as hardware wallets) rely on offline electronic devices to securely store your private keys.

Typically, cold wallets tend to charge fees, while hot wallets don’t.

While you still can’t buy everything using cryptocurrency, crypto retailing is expanding in 2024 and beyond. It is currently possible to buy a wide variety of products from e-commerce websites using crypto.

Want to learn more? Tonex offers Blockchain and Cryptocurrency Masterclass Training, a 2-day course where participants will delve deeply into blockchain and cryptocurrency technologies, two of the most important technological modalities driving global economics today and likely in the future.

For more information, questions, comments, contact us.

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