Cryptography: The Building Blocks of Bitcoin Security
The security of Bitcoin transactions rests upon the foundation of cryptography, a technique that functions like a secret code safeguarding your transactions. Imagine it as a digital lock that ensures the safety of your valuable assets. To access this secure system, each user possesses two distinctive keys: a private key and a public key. The private key serves as a confidential password, known solely to you, and it is utilised to sign off on your transactions, proving your ownership and authorisation. The public key, on the other hand, is openly shared with the network, allowing it to verify the legitimacy and reliability of your transactions. It's akin to displaying a unique digital ID card that proves you're the rightful owner of the transaction. Together, these cryptographic keys form an impenetrable shield, enabling secure and trustworthy Bitcoin transactions in the vast digital realm.
Decentralised and Distributed Ledger: The Power of the Blockchain
Bitcoin's security is further strengthened by its decentralised and distributed ledger known as the blockchain. Think of the blockchain as a giant public record book that keeps track of all Bitcoin transactions. Each transaction is recorded in chronological order, forming a long chain of information. But here's the interesting part: this record book isn't owned or controlled by any single entity. Instead, it is spread across countless computers, or nodes, all around the world.
This distributed nature of the blockchain is what makes it so robust and secure. Since there is no central authority, it becomes extremely difficult for anyone to manipulate or tamper with the transactions. Every participant in the network has a copy of the entire blockchain, and they work together to validate and confirm new transactions. This collective effort ensures that the information on the blockchain remains accurate and trustworthy.
Even if one or a few nodes malfunction or are compromised, the rest of the network continues to operate smoothly. The decentralised nature of the blockchain makes it highly resistant to hacking attempts or malicious activities. It's like having a massive network of interconnected security guards, each keeping an eye on the others to ensure the integrity and reliability of the transactions.
Proof-of-Work: Mining and Consensus
To ensure the validity of transactions and maintain the security of the blockchain, Bitcoin relies on a group of participants called miners. These miners are individuals or organisations that use powerful computers to engage in a process called mining, which involves solving complex mathematical puzzles using a mechanism known as proof of work. It's like being part of a competitive race where miners strive to find the solution to a puzzle. The puzzles are designed to be difficult and require significant computational power and energy consumption.
When a miner successfully solves a puzzle, they are rewarded with the opportunity to add a new block to the blockchain. This block contains a collection of verified transactions that are permanently recorded in the blockchain's transaction history. Miners receive rewards in the form of newly created Bitcoins and transaction fees associated with the included transactions.
The role of miners goes beyond the race to solve puzzles. They play a vital role in maintaining the decentralised nature of the Bitcoin network. By collectively participating in the mining process, miners contribute to the consensus mechanism of Bitcoin. They validate transactions and ensure that all participants agree on the state of the blockchain. This consensus mechanism, based on proof of work, helps prevent malicious hackers from easily altering the transaction history, adding a layer of security and trust to the system.
Network Security and Peer-to-Peer Validation
Bitcoin's network consists of numerous nodes that communicate and validate transactions in a peer-to-peer fashion. Each transaction undergoes a validation process, where nodes verify that the transaction adheres to the established rules of the Bitcoin protocol. This distributed validation adds an additional layer of security, as multiple nodes need to reach a consensus on the validity of each transaction.
Privacy and Pseudonymity
While Bitcoin transactions are considered secure, privacy and pseudonymity play a significant role. Bitcoin addresses, which are used to receive and send funds, are pseudonymous. Although the transactions themselves are transparent and can be viewed on the blockchain, the true identities behind these addresses remain concealed unless explicitly revealed.
These security measures collectively provide users with confidence in the integrity, confidentiality, and immutability of their Bitcoin transactions. As Bitcoin continues to evolve, its security measures will adapt to emerging threats, ensuring the ongoing protection of the network and its users' digital assets.
]]>DEBANKING AND ITS IMPACT ON CRYPTO EXCHANGES:
Debanking is when banks decide to sever ties or put limits on their relationships with customers or industries. And guess what? Cryptocurrency exchanges often end up on the receiving end of this deal due to perceived risks and regulatory pressures. It throws a wrench in their plans, making it harder for them to access essential banking services and operate smoothly.
Picture this: a cryptocurrency exchange trying to navigate the crypto world, making transactions, and providing services to their eager customers. They rely on their relationships with banks to handle the fiat currency side of things, but then suddenly debanking happens. Their access to essential banking services gets snipped, and they're left scrambling to find alternatives.
They have to jump through hoops to find new banking partners, which can be a time-consuming process. And even when they manage to establish new relationships, they often face limitations or higher costs. They're hampered in their ability to provide seamless services to their customers, hindering their growth and potentially putting them at a competitive disadvantage.
But why, you might wonder, are banks so skeptical about cryptocurrency exchanges? Well, it's a mix of factors. First, there are those perceived risks associated with cryptocurrencies, like potential money laundering or illicit activities **eyeroll**.
On top of that, regulatory pressures add fuel to the fire. Governments and financial authorities are still figuring out how to regulate cryptocurrencies and ensure they don't become a breeding ground for illegal activities. This creates a sense of uncertainty and caution among banks, leading them to be more hesitant when dealing with crypto-related businesses.
THE TREASURY’S POLICY RESPONSE:
The Australian Department of the Treasury is moving to protect the local crypto industry! This comes after the CBA (Australia’s largest bank) said in early June that it would restrict certain payments to crypto exchanges over scam risks. Previously, Westpac also banned customers from transacting with Binance crypto exchange in mid-May.
In response, Australia’s Treasury has given a shoutout to the big guns in the banking world like CBA, Westpac, ANZ Group, and National Australia Bank, urging them to publish guidelines specifically for crypto exchanges. These guidelines will shed light on what these banks require and their risk tolerance when dealing with crypto services providers.
By making this info public, we can all get a better understanding of how banks are playing their crypto game. Plus, it opens up a line of communication between the banks and the crypto exchanges, which can lead to some stronger partnerships.
IMPLICATIONS FOR THE CRYPTO INDUSTRY:
So, what does all this mean for the crypto industry? Well, with clear guidance and published data from the banks, crypto exchanges can navigate the stormy waters of debanking with ease. It helps them meet the banks' expectations and keeps everyone on the same page. And you know what? It builds trust and credibility, which can attract more institutional investors and make cryptocurrencies more accessible to a wider range of users.
Collaboration is the name of the game! We need financial institutions, regulators, and crypto exchanges to come together and create a better ecosystem. By working hand in hand, we can develop best practices, risk management frameworks, and ensure that crypto-related businesses have access to banking services without any hassle.
So, while debanking has been causing quite a ruckus in Australia, there may be calmer waters ahead. It looks as though the Australian Department of the Treasury has our back. By focusing on the cryptocurrency industry in their debanking policy responses, encouraging banks to publish guidelines for crypto exchanges and share data on their requirements and risk tolerance, we're heading towards a more transparent and cooperative future.
]]>BREAKING DOWN BARRIERS
One of the most remarkable aspects of cryptocurrency is the ability to conduct near-instantaneous global transactions. Unlike traditional banking, where cross-border transfers can take days or even weeks to process, cryptocurrencies enable seamless peer-to-peer transactions across the globe. Whether you're sending funds to a friend in another country or conducting business with someone on the opposite side of the world, crypto allows for swift and hassle-free transactions.
Another significant advantage is the substantially lower fees associated with cryptocurrency transactions. Traditional banks often charge hefty fees for various services, such as wire transfers or international transactions. In contrast, cryptocurrencies operate on decentralised networks that eliminate the need for intermediaries, resulting in significantly reduced fees. This affordability has garnered immense appeal, particularly among a generation that values transparency and cost-effectiveness.
In addition to speed and cost-efficiency, crypto offers individuals a newfound level of control over their financial transactions. Traditional banking systems often place limitations on how individuals can manage and access their funds. Account freezes, restrictions, and arbitrary limitations can be frustrating and hinder financial autonomy. However, with cryptocurrencies, individuals have complete ownership and control over their digital assets. They can make transactions whenever they want, without being subject to third-party interference or unnecessary delays.
This newfound efficiency and control in financial transactions provided by cryptocurrencies resonate strongly with a generation that values convenience and speed. The digital age has fostered a culture of instant gratification and seamless experiences, and cryptocurrencies align perfectly with these expectations. Whether it's making a purchase, conducting business, or sending money to loved ones, individuals now have the freedom to do so with ease and without unnecessary obstacles.
FINANCIAL INDEPENDENCE AND EMPOWERMENT
Cryptocurrency offers an incredible opportunity for individuals to attain financial independence and empowerment. In stark contrast to traditional banking systems, where intermediaries hold the keys to financial well-being, cryptocurrencies shift the power dynamics and put control directly into the hands of individuals. This fundamental shift has profound implications for how we manage, grow, and utilise our wealth.
With cryptocurrencies, individuals have the freedom to manage their wealth on their own terms. They are no longer bound by the restrictions and limitations imposed by traditional financial institutions. Instead, they can take charge of their financial destiny, making decisions based on their own goals and preferences. Whether it's storing digital assets securely in personal wallets or executing transactions directly, the power lies firmly in their hands.
Cryptocurrencies have also opened up a world of investment opportunities that were previously inaccessible to many. Traditional investment avenues often require extensive paperwork, complex processes, and substantial initial capital. Cryptocurrencies have lowered these barriers to entry, allowing individuals to participate in investment markets with relative ease. From established cryptocurrencies like Bitcoin and Ethereum to emerging altcoins, the options for diversifying investment portfolios have expanded exponentially.
Beyond traditional investments, cryptocurrencies have also given rise to decentralised finance (DeFi) platforms. These platforms leverage blockchain technology to create a financial ecosystem that operates outside the realm of traditional institutions. Through DeFi, individuals can lend, borrow, trade, and earn interest on their digital assets, all without the need for intermediaries. This innovative approach to finance empowers individuals to be their own banks, with complete control over their funds and the ability to earn passive income.
DISRUPTING CROSS-BORDER TRANSACTIONS
In the traditional system, sending money across borders can be a slow and costly ordeal. Each intermediary along the transaction path adds layers of complexity, leading to delays, increased fees, and potential security risks. Not to mention the fees associated with traditional remittance services can be disproportionately high, eating into the funds that individuals are trying to send to others abroad! This financial strain can be a significant burden, particularly for those in economically disadvantaged regions.
With cryptocurrencies, on the other hand, individuals can conduct peer-to-peer transactions directly, bypassing the need for intermediaries. This peer-to-peer nature eliminates the time-consuming processes and unnecessary fees associated with traditional remittance services. Instead, you can send funds across borders quickly and at a fraction of the cost, ensuring that more of your hard-earned money reaches its intended destination.
FINANCIAL INCLUSION FOR THE UNBANKED
Cryptocurrency has the power to bring financial services to the unbanked population. In many parts of the world, individuals lack access to traditional banking services due to various factors, such as geographical limitations or lack of documentation. Cryptocurrencies offer an alternative financial system that operates on the internet, enabling individuals to participate in economic activities and access financial services without the need for a traditional bank account. This inclusion of the unbanked population has the potential to uplift communities and drive economic growth in previously underserved areas.
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>PRESERVING PERSONAL FREEDOM
Privacy is the cornerstone of personal freedom. It allows individuals to express themselves freely, maintain autonomy, and make choices without fear of judgment or surveillance. When our privacy is compromised, it can lead to self-censorship and a chilling effect on our ability to express opinions, explore new ideas, and engage in open discussions. Protecting our privacy ensures that we can exercise our rights and maintain our individuality in a digital world.
SAFEGUARDING PERSONAL INFORMATION
Your personal information is a valuable asset, and it is crucial to keep it out of the wrong hands. In a world driven by data, corporations and malicious actors constantly seek to collect and exploit personal information for various purposes. By prioritising privacy, you can limit the exposure of your sensitive data, such as financial details, health records, and personal communications. This minimises the risk of identity theft, fraud, and other forms of digital harm.
PROTECTING AGAINST SURVEILLANCE
Mass surveillance has become a growing concern in the digital age. Governments, organisations, and even online platforms may engage in monitoring and data collection without your consent. Privacy tools and technologies, such as encrypted messaging apps, virtual private networks (VPNs), and privacy-focused browsers, empower individuals to reclaim control over their online activities and protect themselves against unwarranted surveillance.
MITIGATING RISKS OF DATA BREACHES
Data breaches have become alarmingly common, and they can have severe consequences for individuals and organisations alike. Breached personal data can lead to identity theft, financial loss, reputational damage, and even emotional distress.
According to Cyber Security Hub, the year 2022 witnessed over 4,100 data breaches that were publicly disclosed. Some of the notable breaches occurred in major companies and organizations, such as Twitter, Uber, Twilio, DoorDash, Optus, the Los Angeles Unified School District, and Medibank.
Medibank, one of Australia's largest medical insurance providers, experienced a significant breach that captured widespread attention. As reported by The Guardian, the breach affected approximately 9.7 million users. The leaked information included personally identifiable data, which alone is a cause for concern. However, the situation worsened for many Medibank customers when the company revealed that the accessed information also comprised codes associated with their diagnoses and procedures, as well as the names of their healthcare practitioners.
In an increasingly interconnected world, where digital transactions and interactions are commonplace, the frequency and magnitude of data breaches serve as a wake-up call for individuals and organisations alike. The protection of personal data and the implementation of robust security measures must be top priorities.
As individuals, we can take steps to protect ourselves by practicing good cybersecurity hygiene, such as using strong, unique passwords, enabling two-factor authentication, and being vigilant about phishing attempts. Organisations, on the other hand, have a responsibility to invest in robust security infrastructure, implement strict data protection protocols, and prioritise the education and awareness of their employees and customers regarding cybersecurity best practices.
RESPECTING DIGITAL AUTONOMY
Privacy is essential for maintaining control over your digital life. It ensures that you have the autonomy to choose how your personal information is shared, accessed, and used. By utilising privacy-enhancing technologies, such as decentralised networks and blockchain-based solutions, you can regain control over your data and reduce reliance on centralised entities that may compromise your privacy.
ENCOURAGING ETHICAL DATA PRACTICES
By valuing privacy, you send a clear message to businesses, organisations, and policymakers that ethical data practices are essential. Privacy-conscious consumers play a crucial role in shaping the digital landscape by demanding transparency, consent, and responsible data handling. By supporting privacy-focused products and services, you contribute to a culture of respect for personal information and promote the adoption of privacy-first approaches.
In an era where our lives are increasingly lived online, privacy has become an integral part of our digital well-being. Protecting our personal data is not only a matter of self-interest but also a fundamental right. By understanding the importance of privacy, taking proactive measures to safeguard our personal information, and supporting privacy-enhancing technologies, we can navigate the digital world with confidence, autonomy, and peace of mind.
]]>UTILISE BLOCKCHAIN EXPLORERS
Blockchain explorers are user-friendly online tools that allow you to explore the Bitcoin blockchain and access various network data. These platforms provide a simplified interface, making it easy for anyone to search for transaction details, view block information, and track wallet balances. Popular blockchain explorers like Mempool.space, Blockchair, Blockchain.com, and Bitaps offer comprehensive features and intuitive interfaces to access Bitcoin network data effortlessly.
LEVERAGE APIs
Application Programming Interfaces (APIs) provide a bridge between your applications or tools and the Bitcoin network. While coding skills are not necessary, basic familiarity with APIs can help you retrieve specific data from the blockchain. Bitcoin APIs, such as Blockchain.com API and Blockstream API, offer documentation and examples that make it accessible for individuals without advanced IT skills to extract data like transaction history, wallet balances, and network statistics.
EXPLORE OPEN-SOURCE LIBRARIES AND TOOLS
The Bitcoin community has developed numerous open-source libraries and tools that simplify data retrieval from the Bitcoin network. These user-friendly resources often come with clear documentation and examples, enabling even those with limited coding knowledge to access network data. Notable examples include Bitcoin Core, Electrum, and Insight, which provide easy-to-use interfaces to explore the Bitcoin blockchain and extract valuable information.
ENGAGE WITH COMMUNITY RESOURSES
The Bitcoin community is known for its inclusivity and willingness to help newcomers! Various online forums, social media groups, and dedicated communities offer valuable insights and guidance on accessing Bitcoin network data. Platforms like Reddit's r/Bitcoin, BitcoinTalk forum, and the Bitcoin Stack Exchange are excellent places to ask questions, learn from experienced members, and discover tools or methods to access network data without advanced IT skills.
PARTICIPATE IN DATA VISUALISATION PLATFORMS
Data visualisation platforms take Bitcoin network data and present it in visually appealing formats, making it easier for non-technical individuals to grasp complex information. These platforms often offer pre-designed charts, graphs, and interactive visualisations that allow you to explore key metrics and trends. Websites like CoinMetrics, CryptoQuant, and IntoTheBlock offer comprehensive data visualisations that provide insights into network activity, transaction volumes, and more.
Accessing Bitcoin network data doesn't have to be reserved for experts with advanced IT skills! With the help of user-friendly blockchain explorers, APIs, open-source libraries, community resources, and data visualisation platforms, anyone can explore and analyse valuable information from the Bitcoin blockchain.
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>MULTI-COIN SUPPORT: STREAMLINING YOUR CRYPTO COLLECTION
Keeping track of multiple cryptocurrencies can be a real headache, right? Well, thanks to recent innovations, you can say goodbye to wallet overload! The latest hardware wallets now come with a fantastic feature: multi-coin support. This means you can securely store a wide variety of cryptocurrencies, from Bitcoin to Ethereum and beyond, all in one convenient device. No more juggling multiple wallets or worrying about compatibility issues. With multi-coin support, managing your crypto collection has never been easier or more hassle-free! Of course, there is no single one hardware wallet that supports EVERY coin/token but the major brands will cover most of the important projects.
BIOMETRIC AUTHENTICATION: YOUR FINGERPRINT IS THE KEY
We know how important it is to keep your digital assets safe from prying eyes. Now picture this: unlocking your hardware wallet using just your fingerprint. Sounds futuristic, right? Well, it's a reality now. Biometric authentication, like fingerprint recognition, has become a game-changer in hardware wallet security. With a simple touch of your finger, you can access your funds, sign transactions, and enjoy an extra layer of protection against unauthorised access.
MOBILE INTEGRATION: CRYPTOCURRENCY SECURITY ON THE GO
The future of hardware wallets is all about seamless integration with your smartphones. Imagine being able to connect your hardware wallet to your mobile device via a dedicated app. This means you can access and manage your digital assets on the go, wherever life takes you. Whether you're making a quick transaction or checking your portfolio while sipping a coffee at your favorite café, mobile integration brings flexibility and accessibility to a whole new level. Your cryptocurrency security is now just a tap away!
ENHANCED USER EXPERIENCE: INTUITIVE INTERFACES AND USER-FRIENDLY DESIGN
Let's talk about user experience! We believe that managing your digital assets should be a breeze, whether you're a crypto newbie or a seasoned pro. That's why the latest hardware wallets are designed with user-friendly features and intuitive interfaces. Say goodbye to complicated setup processes (paper wallets) and confusing navigation; modern wallets are all about simplicity and style. With visually appealing displays, straightforward navigation, and streamlined functionalities, you'll feel like a crypto pro in no time.
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>Let's face it, not everyone has easy access to traditional banking services. Many people, especially in remote or marginalised areas, are left out of the financial system due to various hurdles. From limited physical infrastructure to high transaction costs, these barriers can perpetuate inequality and hinder economic growth.
Limited Physical Infrastructure: A Barrier to Entry
Imagine living in a remote village nestled deep in the mountains or a sprawling slum on the outskirts of a bustling city. In such areas, physical banking infrastructure is often scarce or non-existent. Bank branches may be miles away, making it impractical for individuals to access basic financial services. Without a nearby bank, simple tasks like depositing money or cashing a check become daunting challenges. The lack of physical infrastructure creates a significant barrier to entry, leaving many individuals excluded from the current financial system.
High Transaction Costs: A Heavy Burden
For those who do have access to financial services, high transaction costs can be crippling. Traditional banking systems often involve layers of intermediaries, each adding their fees to the process. These fees can quickly accumulate, making financial transactions prohibitively expensive for individuals with limited resources. The burden of high transaction costs disproportionately affects marginalised communities, further exacerbating the cycle of poverty and exclusion.
Lack of Identification: A Catch-22 Situation
Obtaining a valid identification document is a basic requirement for accessing financial services. However, many individuals in marginalised communities and developing countries lack the necessary identification documents due to a variety of reasons, such as limited government services or issues with documentation processes. Without proper identification, opening a bank account or applying for a loan becomes nearly impossible. This catch-22 situation further perpetuates financial exclusion, as individuals are trapped in a cycle where they cannot access formal financial services without identification, yet obtaining identification without financial resources is challenging.
Financial Illiteracy: A Knowledge Gap
Another significant challenge is the lack of financial literacy and awareness in underserved communities. Without proper education on financial matters, individuals may not understand the importance of savings, investments, or how to navigate the complexities of banking services. This knowledge gap prevents individuals from making informed financial decisions and taking advantage of available opportunities. Addressing financial illiteracy through targeted education initiatives is crucial for empowering individuals to take control of their financial lives.
While these challenges may seem daunting, there is hope on the horizon. Cryptocurrencies, like Bitcoin, have emerged as a promising solution for promoting financial inclusion and bridging the gap for the unbanked. Operating on decentralised blockchain technology, cryptocurrencies offer an alternative financial system that transcends physical barriers and reduces transaction costs.
By embracing cryptocurrencies, individuals in remote or marginalised areas can break free from the limitations of traditional banking infrastructure. Through digital wallets and mobile applications, a gateway to financial inclusion is unlocked, granting secure and convenient transactions without the constraints of physical bank branches. This innovative approach empowers individuals to take charge of their finances, seamlessly send and receive money, and actively participate in economic activities, all with ease and flexibility.
But the benefits of cryptocurrencies extend far beyond accessibility and convenience. They possess the power to foster financial education and empowerment, igniting a sense of control over personal finances. Through community initiatives and educational programs, individuals are equipped with knowledge about cryptocurrencies, digital wallets, and the vast potential of decentralised finance. Armed with this understanding, they can make informed financial decisions, confidently navigate the digital landscape, and seize opportunities for economic growth.
Imagine a world where a farmer in a remote village can effortlessly receive payments for their produce through a simple digital transaction, without the need for lengthy intermediaries or exorbitant fees. Picture a small business owner in a marginalised community expanding their reach by accepting cryptocurrencies as a form of payment, transcending geographical boundaries and unlocking new markets. Envision a student in an underserved area accessing microloans and crowdfunding platforms powered by cryptocurrencies, fueling their dreams of education and entrepreneurship. These scenarios represent the transformative power of cryptocurrencies in promoting financial inclusion and empowering individuals to break free from the chains of traditional financial systems.
However, we must acknowledge that the journey to widespread adoption of cryptocurrencies and decentralised finance is not without its challenges. Regulatory frameworks must adapt to this evolving landscape, striking a delicate balance between safeguarding consumer interests and promoting innovation. Scalability issues need to be addressed to ensure that cryptocurrencies can handle increased transaction volumes without compromising efficiency (check out the Lightning Network - a great initiative that is addressing this problem). And perhaps most importantly, education remains a vital piece of the puzzle, as individuals need to understand the nuances, benefits, and risks associated with cryptocurrencies to make informed decisions.
It is only through collective efforts, with governments, financial institutions, tech providers, and communities coming together, that we can create an ecosystem that nurtures the potential of cryptocurrencies for the greater good. By building supportive environments that foster innovation while safeguarding individuals' rights and minimising risks, we pave the way for a future where financial inclusion is no longer a luxury but a fundamental right.
Ready to join the crypto revolution and make financial inclusion a reality? Cryptocurrencies are breaking down barriers and empowering the unbanked like never before. Through blockchain technology, innovative projects are bringing secure, low-cost transactions, digital wallets, microfinance, and crowdfunding to the fingertips of millions. Let's embrace the power of cryptocurrencies and work together to create a world where financial services are accessible to all, no matter their background or location.
]]>Why Do We Need The Lightning Network?
Here's the deal: Bitcoin's great and all, but it has a scalability problem. As more and more people start using Bitcoin, the original blockchain faces a challenge: It can’t handle a large number of transactions quickly enough. This leads to delays and increased transaction fees, making Bitcoin less practical for everyday use.
Imagine this: You want to buy a cup of coffee with Bitcoin. You initiate the transaction, but it, at best, takes 10 minutes, if not longer, for the transaction to be confirmed on the blockchain. By the time your transaction goes through, your coffee has gone cold, and you might even end up paying more in transaction fees than the actual cost of the coffee itself. Not the ideal situation, right?
That's where the Lightning Network comes in! Think of it as a supercharged upgrade for Bitcoin. It tackles the issues of slow transactions and high fees, making your crypto experience lightning-fast and cost-effective.
Exploring the Lightning Network's Functionality
So, how does the Lightning Network work its magic? Well, think of it as a network of interconnected payment channels. These payment channels are like private highways that exist off the main Bitcoin blockchain. When two parties want to transact with each other frequently, they can open a payment channel between them. By doing so, they can conduct an ‘unlimited’ number of transactions instantly and without having to broadcast each one to the entire Bitcoin network.
Let's go back to our coffee example. With the Lightning Network, you could open a payment channel with your favourite coffee shop. Instead of waiting for each transaction to be confirmed on the Bitcoin blockchain, you can instantly transfer the funds through the payment channel. It's as if you and the coffee shop have your own mini blockchain just for your transactions. The best part? The fees for these Lightning Network transactions are significantly lower (literally cents) than traditional on-chain Bitcoin transactions, making small-value transactions feasible and cost-effective.
The Benefits of Lightning Network for Bitcoin Users
But wait, there's more! The Lightning Network also enhances privacy. Since transactions happen off-chain, they are not publicly visible on the main blockchain. This provides an additional layer of privacy and confidentiality for users. The Lightning Network can also incorporate onion routing, a technique that further obscures transaction paths, making it harder for anyone to trace and identify the participants involved in the transactions.
With the Lightning Network, microtransactions become a breeze. You can now imagine a world where you can stream payments for content you enjoy, tip your favorite creators in real-time, or pay for tiny services like online gaming items or digital goods without worrying about high fees or slow confirmations.
That's the power of the Lightning Network. It's not just an upgrade; it's a game-changer. By enabling lightning-fast transactions, reducing fees, and enhancing privacy, the Lightning Network opens up a world of possibilities for Bitcoin users. It takes Bitcoin from being a store of value to a practical and efficient medium of exchange.
Hardware Wallets: Safeguarding Your Cryptocurrencies
Now, let's talk about keeping your precious Bitcoin safe. Enter hardware wallets, your trusty sidekick in the world of crypto security. These physical devices provide top-notch protection for your private keys and keep your cryptocurrencies away from prying eyes and pesky hackers.
With a hardware wallet, you get peace of mind knowing that your digital assets are shielded from online threats. So, whether you're using the Lightning Network or traditional Bitcoin transactions, your funds are locked up tight.
Choosing the right hardware wallet is important too. Look for one that suits your needs, whether it's ease of use, compatibility with different cryptocurrencies, or additional security features. You can check out our top picks here.
Congratulations, you're now a Lightning Network whiz! Gear up with your newfound knowledge, secure your Bitcoin with a hardware wallet, and get ready to embrace the lightning-fast future of crypto transactions. Happy hodling and stay crypto-safe friends!
]]>In the world of cryptocurrency, decentralisation refers to the idea that power is spread out among many different actors, rather than being controlled by a single entity or organisation. This means that no one person or group has complete control over the network, making it much harder for any one of them to take over of the network or manipulate it for their own benefits.
BENEFITS OF DECENTRALISATION IN CRYPTOCURRENCY
Decentralisation in cryptocurrency comes with several benefits. Firstly, it helps to ensure the security of the network. Since power is distributed among many different actors, it is much harder for any one of them to take control of the network or manipulate it for their own gain.
Another important benefit of decentralisation in cryptocurrency is that it helps to ensure the integrity of the network. Since no single entity has complete control over the network, it is much harder for anyone to manipulate the transactions or alter the blockchain.
EXAMPLES OF DECENTRALISATION IN CRYPTOCURRENCY
Bitcoin is perhaps the most well-known example of a decentralised cryptocurrency. Unlike traditional fiat currencies that are controlled by central banks and governments, Bitcoin operates on a peer-to-peer network, where transactions are validated by a network of individual users rather than a central authority.
This means that anyone can participate in the Bitcoin network and help to validate transactions, as long as they have the necessary computing power and expertise. This is in stark contrast to traditional financial systems, where only a select few are granted the power to create money and control the flow of funds.
In the Bitcoin network, every transaction is recorded on a public ledger known as the blockchain. This ledger is maintained by a network of nodes, each of which contains a copy of the entire blockchain. Each time a new transaction is made, it is broadcast to the entire network, and the nodes work together to validate and add the transaction to the blockchain.
Because the blockchain is a public ledger, anyone can view the entire history of the Bitcoin network and track the movement of funds from one address to another. This creates a high degree of transparency and accountability in the Bitcoin network, as all transactions are recorded in a tamper-proof manner that cannot be altered by any single individual or entity.
The decentralised nature of Bitcoin also makes it highly resistant to censorship and control. Because there is no central authority controlling the network, it is very difficult for anyone to shut down or manipulate the system. This makes Bitcoin an ideal currency for those who value privacy, security, and independence.
CHALLENGES OF DECENTRALISATION IN CRYPTOCURRENCY
While decentralisation in cryptocurrency has many benefits, it is not without its challenges. One of the biggest challenges is the issue of scalability. As more and more users join the network, it can become more difficult to process transactions quickly and efficiently. Luckily there are solutions like the Lightning Network that help with scalability. The Lightning Network is capable of millions to billions of transactions per second across the Bitcoin network.
Another challenge of decentralisation in cryptocurrency is ensuring that power is distributed fairly. In a decentralised network, there is always the risk that certain individuals or groups will gain more power than others. This can lead to new forms of inequality and oppression.
Despite these challenges, the importance of decentralisation in cryptocurrency cannot be overstated. By distributing power more evenly, we can create a more secure, transparent, and equitable financial system. Decentralisation has the potential to revolutionise many aspects of our lives, from the way we make transactions to the way we govern ourselves.
So the next time you hear the term "decentralisation" being thrown around in the world of cryptocurrency, don't be intimidated - just remember that it means power to the people! And who doesn't want a financial system that empowers individual users and promotes fairness and transparency?
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>"Mastering Bitcoin" by Andreas Antonopoulos is often considered the go-to resource for those looking to gain a deep understanding of Bitcoin. This book provides a technical introduction to Bitcoin and covers topics such as the underlying blockchain technology, how Bitcoin transactions work, and how to securely store and use Bitcoin. Antonopoulos is a highly respected figure in the Bitcoin community and has written several other books on the topic as well.
"The Bitcoin Standard" by Saifedean Ammous is another highly recommended book for those looking to learn more about Bitcoin. This book focuses on the economic principles behind Bitcoin and argues that Bitcoin is the hardest and soundest money ever created. It provides an in-depth look at how Bitcoin can be used as a store of value and a means of exchange.
"What Bitcoin Did" is a popular podcast hosted by Peter McCormack that explores the world of Bitcoin and cryptocurrencies. With over 300 episodes, the podcast features interviews with a wide range of guests, including entrepreneurs, investors, developers, and thought leaders in the space. McCormack's interviews are known for being in-depth and thought-provoking, and he often dives into controversial topics such as Bitcoin's scaling debate and the role of government regulation in the cryptocurrency space.
"The Bitcoin Podcast" is a weekly podcast that covers a wide range of topics related to Bitcoin and other cryptocurrencies. The hosts, Demetrick Ferguson and Corey Petty, are both knowledgeable and engaging, and they often bring on guests to provide expert insight and analysis.
"Unchained" is another popular podcast that covers the world of blockchain and cryptocurrencies. Hosted by Laura Shin, a veteran journalist in the cryptocurrency space, "Unchained" features interviews with a wide range of guests, including entrepreneurs, investors, and developers.
"The Rise and Rise of Bitcoin" is a documentary that provides a comprehensive overview of the history of Bitcoin and the people who have helped shape it. The film covers everything from the early days of Bitcoin to the Mt. Gox hack and the ongoing debates over scaling and regulation.
"Banking on Bitcoin" is another documentary that explores the history and potential of Bitcoin. This film features interviews with a wide range of experts, including economists, journalists, and Bitcoin enthusiasts, and provides a balanced and informative look at the technology.
If you're looking for a more structured learning experience, there are several online courses available that can help you gain a deeper understanding of Bitcoin. "Bitcoin and Cryptocurrency Technologies" is a popular course offered by Princeton University that provides a comprehensive introduction to Bitcoin and other cryptocurrencies. The course covers technical topics such as cryptography and distributed systems, as well as economic and social implications of the technology.
Whether you're looking to learn more about the technical aspects of Bitcoin or you're interested in exploring its economic and social implications, there are a variety of resources available to help you deepen your knowledge. Immersing yourself in the cryptocurrency space will help you to gain a more comprehensive understanding of this revolutionary technology and how it's changing the world of finance and beyond.
]]>Use Two-Factor Authentication (2FA)
Two-factor authentication is an extra layer of security that requires a user to provide two forms of identification before accessing an account. It is one of the most effective ways to protect your accounts from unauthorized access. Many cryptocurrency exchanges and wallets offer 2FA as an option, and we highly recommended that you enable it. There are several different types of 2FA, including SMS codes, authenticator apps, and hardware keys. Authenticator apps like Google Authenticator or Authy are considered the most secure option, as they generate unique codes that change every 30 seconds.
Use a Strong Password
Using a strong, unique password is one of the simplest ways to protect your accounts from unauthorised access. Your password should be at least 12 characters long and include a mix of uppercase and lowercase letters, numbers, and symbols. Avoid using the same password for multiple accounts, as this makes it easier for hackers to gain access to all of your accounts if they obtain your password for one.
Here’s how long a $25 per hour rented computer from AWS would take to crack your password:
Use a Password Manager
Using a password manager is an easy way to generate and store strong, unique passwords for all of your accounts. Password managers like LastPass or Dashlane can also help you keep track of which passwords you've used for each account and alert you if any of your passwords have been compromised in a data breach. Remember: NEVER put your private keys/seed phrase onto an online enviromen, this includes password managers.
Keep Your Software Up to Date
Keeping your software up to date is essential for maintaining the security of your computer and other devices. Software updates often include security patches that address vulnerabilities that could be exploited by hackers. This includes your operating system, web browser, and any other software you use to access the internet.
Be Wary of Phishing Attempts
Phishing is a type of cyber attack where hackers try to trick you into giving them sensitive information by posing as a trustworthy source. For example, a phishing email might look like it is from a legitimate cryptocurrency exchange or wallet provider and ask you to click on a link to verify your account information. Always be wary of unsolicited emails or messages that ask for your personal information or credentials.
Use a Hardware Wallet
Hardware wallets are physical devices that store your cryptocurrency offline, providing an extra layer of security. This means that even if a hacker gains access to your computer or phone, they will not be able to access your cryptocurrency without physically stealing your hardware wallet. Popular hardware wallets include Trezor and Ledger; you can buy your own hardware wallet here.
Using the internet safely is essential for protecting your cryptocurrency and other digital assets. By following these best practices, including enabling 2FA, using strong passwords and a password manager, keeping your software up to date, being wary of phishing attempts, and using a hardware wallet, you can reduce your risk of falling victim to cyber attacks and enjoy the benefits of cryptocurrency with peace of mind.
]]>Cryptocurrency transactions are highly valuable, and the need for secure authentication is critical. Traditional password-based authentication methods are susceptible to attacks, and cybercriminals can gain unauthorised access to users' cryptocurrency wallets, resulting in a significant loss of funds. To mitigate this risk, cryptocurrency wallets such as Ledger, are increasingly adopting WebAuthn authentication methods.
HOW DOES IT WORK?
WebAuthn uses a public-key cryptography method to authenticate users, and it works by creating a private and public key pair. The private key is stored securely on the user's device, while the public key is shared with the website or application. When a user wants to authenticate to a website, they provide their biometric authentication or insert their security key into their device, which is then used to generate a cryptographic signature. The signature is sent to the website, which then verifies the signature using the user's public key.
WHY IS IT BENEFICIAL?
One of the significant benefits of WebAuthn authentication is that it eliminates the need for users to remember passwords. This eliminates the risk of password-based attacks, which are prevalent in the cryptocurrency world. Passwords are often weak, and users tend to reuse them across multiple websites, making them vulnerable to credential stuffing attacks. WebAuthn, on the other hand, uses unique cryptographic signatures, making it virtually impossible for attackers to replicate.
WebAuthn authentication also provides an additional layer of security for cryptocurrency transactions by enabling users to verify the transaction details before signing off on them. Users can confirm that the transaction amount and destination address are accurate before signing off on the transaction, preventing fraudulent transactions.
Another advantage of WebAuthn authentication is that it provides protection against phishing attacks. Phishing attacks are prevalent in the cryptocurrency world, and they often involve attackers tricking users into providing their login credentials. With WebAuthn, users do not need to enter their credentials, making it impossible for attackers to steal them.
HOW DO YOU USE WEBAUTHN?
As with any other login situation:
While that’s happening for you in the front-end, here is what’s going on in the back:
This provides a more secure and user-friendly authentication method compared to traditional password-based authentication methods.
As the adoption of cryptocurrencies continues to grow, the need for secure authentication methods such as WebAuthn will become more critical to ensure the safety of users' funds.
]]>Web Authentication or WebAuthn for short is a standard written by the W3C and the FIDO Alliance. It specifies a users authentication mechanism based on public keys cryptography instead of passwords.
The motivation for building such a standard was that Ledger’s current online existence is built on passwords and most security breaches are related to stolen or weak passwords.
Public key cryptography is a cryptographic mechanism that uses two associated keys:
The public key can be used to check whether or not a message has been signed with the private key.Consider Jake, who generates a key pair and shares the public key with Tom. If Jake sends a message to Tom, he can sign it with his private key, and Tom can use the public key to verify that the message was indeed signed by Jake, who is the only one who knows what the private key is.This means that a user can generate a key pair and share the public key with an online service for authentication. Later, the user can authenticate themselves by demonstrating to the online service that they are in possession of the private key. All of this without sending the private key to the online service! This means that the private key cannot be stolen or intercepted during user-to-server communications.
The WebAuthn standard is also resistant to classic phishing attacks (when a hacker tricks you into disclosing sensitive information, in this case, login credentials). WebAuthn, unlike other MFA mechanisms such as OTP, is resistant to such attacks because each key pair is bonded to a specific origin, or web domain. This means that an attack attempting to trick you into using a WebAuthn credential in a different domain (for example, a fake site with url best-service.com instead of legitimate site url best.service.com) will fail because the authentication device will lack a corresponding key pair for that domain.
WebAuthn suggests storing private keys in hardware security elements. Regarding the Ledger Security Key application, private keys are stored within the device Secure Element (SE) which have passed a Common Criteria security evaluation – an international standard for banking cards and state requirements – and have obtained an EAL5+ certificate.
We’ll be sharing more on how WebAuthn works in our next post, stay tuned!
]]>There are 2 main reasons why your recovery phrase is THE MOST important thing to keep safe when it comes to securing your cryptocurrency. Firstly, anyone who knows your recovery phrase can access and steal your wallet and funds. Secondly, if your hardware wallet breaks, is stolen, or misplaced, your 24-word recovery phrase can be used to restore it. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate the private key, there’s no way you or anyone else can recover it, so you will lose access to your cryptocurrency.
Now that we’ve covered why it’s so important to keep your recovery phrase safe, let’s look at how you can do exactly that!
HOW DO I KEEP MY RECOVERY PHRASE SAFE?
When you first set up your hardware wallet, you will be prompted to record the recovery phrase. Of course, you could simply write your recovery phrase on some paper, but this isn't the most durable option. Paper is easily destroyed or misplaced; we've heard plenty of stories about this happening, and there's no way to fix it!
There are a few other things we advise you NOT to do:
By now you may be asking, what CAN I do with my recovery phrase?
Companies such as Billfodl have developed recovery phrase devices. This option is far more stable, solid, and dependable. The Billfodl is made of 316 stainless steel, which has a melting point of nearly 1400 degrees Celsius. It can withstand more than twice the temperature of a typical house fire and is resistant to all types of electrical hazards. You simply recreate your recovery phrase in the steel unit using a randomised set of character tiles, creating an almost indestructible backup.
The Billfodl is back in stock at Coinstop! For just $145 AUD, you can ensure your recovery phrase is as safe and secure as possible.
]]>WHAT IS LEDGER EXTENSION?
Ledger Extension is a multi-chain browser extension that allows you to connect directly to NFT marketplaces and dApps using your Ledger Nano X, whilst warning you about malicious and suspicious websites and smart contracts before signing transactions.
In essence, the Ledger extension is all about connectivity! As a Ledger user, it allows you to connect to multiple devices and accounts, straight from the dApp. But the greatest part is that it gives you added security. There are Web3 checks that give you information on the smart contract you are interacting with, as well as a wallet preview that stimulates the transaction before it happens so you can review and reject it if needed.
This is a gamechanger! No other extension allows for multiple devices, multiple accounts, multiple chains, all straight from the dApp for added security!
HOW DO YOU USE LEDGER EXTENSION?
You must first download the Ledger Extension from the app store to your phone. You'll then be guided through the installation and setup procedures. If you need support setting up Ledger Extension, you can book a consultation with Coinstop here.
WHO CAN USE IT?
The most secure way to interact with Web3 is to use a hardware wallet. As a result, in order to use the Ledger Extension, you must own a Ledger Nano X. For the time being, the Ledger Extension is only available to ethereum and polygon users who use Safari on iOS 16+ and macOS 12+ with Safari 16+. Support for additional browsers, including Chrome, Brave, and Firefox, as well as several EVM chains and Solana, is on the way.
WHAT dApps ARE COMPATIBLE WITH LEDGER EXTENSION?
You can currently connect to the following dApps using Ledger Extension:
To connect, you need to click the Ledger wallet button, which is your gateway to the Ledger ecosystem. If your device is compatible, you'll be prompted to install Ledger Extension.
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>
Bitcoin operates on a decentralized blockchain network, which makes it secure and private. To use Bitcoin, you’ll need a wallet that stores your digital currency (or more specifically, the private keys), and you’ll then need to secure your wallets with a passphrase, a PIN, or a seed. But they all sound like the exact same thing, so what’s the difference?
In this article, we discuss the differences between Bitcoin seeds, passphrases, and PINs, and how each of them is used to protect your digital currency.
PIN
A PIN is a four to eight-digit number that is used to access your Bitcoin wallet. It is the most basic form of security that is available for your wallet, and it is usually the first level of security that you encounter when setting up your wallet.
When you create a PIN, you should ensure that it is unique and not easy to guess (please don’t use 1, 2, 3, 4). A PIN is similar to the one you use for your ATM card or mobile phone, and it is essential to keep it safe from unauthorized access. If someone gains access to your PIN, they can access your wallet and steal your Bitcoin.
BITCOIN SEED
A Bitcoin seed is a randomly generated list of words that is used to restore your wallet if you lose access to it. This seed is a string of 12 to 24 words that you are prompted to write down when you first create your wallet. It is essential to keep this seed safe, as it is the only way to restore your wallet if you lose your device or forget your password.
The seed is also referred to as a recovery phrase, and it is generated by your wallet software. It is a unique set of words that are chosen at random from a dictionary of 2048 words. The order of the words is also critical, and you need to write them down in the exact order they are given. If you lose your seed, you will not be able to access your wallet or your Bitcoin. One more time: your seed phrase is the MOST IMPORTANT piece of the puzzle. DO NOT LOSE OR SHARE THIS!
PASSPHRASE
Often referred to as the “25th word”, the passphrase is an additional layer of security that can be added to your Bitcoin wallet. It is a string of words or characters that you can use to encrypt your wallet. A passphrase is different from a seed. Instead, it is used to add an extra layer of protection to your wallet, making it harder for someone to access your Bitcoin.
When you create a passphrase, it is encrypted and stored on your device. To access your wallet, you need to enter the passphrase in addition to your PIN or seed. A passphrase is also known as a password, and it should be unique and strong to prevent hackers from accessing your Bitcoin.
To keep your Bitcoin safe, it is crucial to use all three levels of security and keep them safe from unauthorized access. Want to learn more about keeping your cryptocurrency secure? Read our Ultimate Guide To Keeping Your Crypto Secure here.
]]>Here are some tips on how to maintain and monitor your Bitcoin node:
UPDATE THE SOFTWARE REGULARLY:
Bitcoin Core software is updated frequently, and it's important to keep your node up to date with the latest version. This ensures that your node is running the most secure and efficient version of the software. If you are using something like Umbrel, you should be notified of any new updates.
CHECK THE NETWORK CONNECTION:
Make sure your node is always connected to the internet and has a stable network connection. If your node goes offline, it can impact the network's overall performance and even cause problems for other nodes. Many Bitcoin users dedicate a device solely to running their Bitcoin node in order to keep it online at all times. If you are also storing funds in your node's wallet or running a Lightning node, this provides an additional layer of security. However, the most basic way to run a Bitcoin node is on a desktop or laptop computer.
CHECK THE DISC SPACE:
Your node requires enough disk space to store the blockchain data. As the blockchain grows, you'll need to make sure your node has enough space to store new blocks. If your node runs out of space, it may stop functioning properly. Current recommendations are about 2TB, this will future proof you for at least the next 1-2 years, possibly beyond.
MONITOR THE MEMORY USAGE:
Bitcoin nodes require a lot of memory to run smoothly. Keep an eye on your node's memory usage to ensure it's not using too much or running out of memory. If your node uses too much memory, it can slow down the entire system.
USE MONITORING TOOLS:
There are various monitoring tools available that can help you keep an eye on your node's performance. For example, you can use the Bitcoin Core GUI to monitor your node's status and performance, or you can use command-line tools like "bitcoin-cli getinfo" to get detailed information about your node.
Maintaining and monitoring your Bitcoin node is crucial to ensure it's always up to date, functioning properly, and contributing to the security and decentralization of the network. By following these tips, you can keep your node running smoothly and be a valuable member of the Bitcoin network!
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>WHAT EQUIPMENT DO YOU NEED?
To build a Bitcoin node, you will need a few pieces of equipment:
Now that you have that sorted, let’s get into how to build a bitcoin node!
HOW TO BUILD A BITCOIN NODE
Building a Bitcoin node involves several steps. Here is a basic breakdown:
WHAT IS A BITCOIN NODE?
A Bitcoin node is a computer running the Bitcoin software that participates in the Bitcoin network by verifying and relaying transactions, storing a copy of the blockchain, and providing access to the full functionality of the network. Nodes help ensure the integrity and security of the network by validating transactions and blocks and preventing double-spending. By running a node, individuals can play an active role in supporting the decentralized network and contributing to its robustness.
HOW DO BITCOIN NODES WORK?
Bitcoin nodes work by connecting to the decentralized network and participating in the validation and distribution of transactions. Each node has a copy of the blockchain and uses it to verify the validity of new transactions. When a transaction is verified, it is broadcast to other nodes in the network. The nodes then independently verify the transaction and add it to their copy of the blockchain if it is valid.
Additionally, nodes participate in the mining process, which involves solving complex mathematical problems to validate transactions and create new blocks. The first node to solve the problem adds the block to the blockchain, and all nodes in the network update their copy of the blockchain with the new block.
In this way, Bitcoin nodes ensure the security and transparency of the network by verifying transactions and adding them to the blockchain in a decentralized manner. By having multiple nodes in the network, it becomes more difficult for a single entity to manipulate or compromise the network.
WHAT ARE A BITCOIN NODES FUNCTIONS?
The functions of a Bitcoin node include:
WHAT ARE THE IMPACTS OF NODES ON THE SECURITY AND DECENTRALISATION OF THE BITCOIN NETWORK?
WHAT ARE THE DIFFERENT TYPES OF BITCOIN NODES?
There are three main types of Bitcoin nodes:
WHAT ARE THE PERSONAL BENEFITS OF RUNNING A BITCOIN NODE?
Running a Bitcoin node can provide several personal benefits, including:
Ready to build your own Bitcoin node? We detail exactly how to do this in our next blog post. Read it here.
]]>Lawyers for FTX filed a creditor matrix (a list of the creditors in a case) with the United States Bankruptcy Court for the District of Delaware late on January 25. The 115-page document reveals a vast global web of companies owed money by the defunct exchange, including airlines, hotels, charities, banks, venture capital firms, media outlets, and crypto companies, as well as US and international government agencies.
Coinbase, Galaxy Digital, Yuga Labs, Circle, Bittrex, Sky Mavis, Chainalysis, Messari, and entities of Binance are among the notable crypto and Web3-related companies owed money by FTX. Apple, Netflix, Amazon, Meta, Google, LinkedIn, Microsoft, and Twitter were also listed as creditors. Among the media outlets mentioned were The New York Times, The Wall Street Journal, and CoinDesk. The tax offices of several United States state agencies, as well as the federal Internal Revenue Service (IRS), were listed. Other government entities, including those in Japan, Australia, and Hong Kong, are also creditors.
The filing did not specify how much each entity owed, and inclusion on the list does not equate to them having a trading account with FTX.
Luckily, the names of nearly 9.7 million (9,693,985) FTX customers whose funds were frozen on the exchange were redacted from the document.
As the impacts of the FTX collapse continues to outfold, it’s as important a time as ever to remind you of the importance of self-storage.
There’s no doubt that exchanges are a convenient way to buy and sell cryptocurrency: you simply have to log into your account via an application or website in order to view your account balances and make transactions. But when you decide to leave your cryptocurrency on an exchange, you’re trading safety for convenience.
In 2022, more than $3 billion was outright stolen in 125 hacks alone, and if the last few years are anything to go by, this number is only going to grow in 2023. Simply put, you NEED to remove your assets off exchanges if you want to ensure their safety.
BUT WHERE CAN YOU STORE THEM?
Cold storage hardware wallets. This way, you can rest assured that your crypto wealth is in your hands and your hands only. Online digital wallets, or “hot wallets”, whether provided by a crypto exchange or a third party, all require internet access. They are considered the most vulnerable wallets in the world as they store your security keys and codes in an online environment.
Cold storage devices such as hardware wallets, however, are offline, meaning that they aren’t vulnerable to the most common hacks you see today. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
Ready to protect your assets? Head to Coinstop for the best cold storage solutions.
]]>In addition to an overall loss of trust in crypto, there have been price drops similar to those seen in the stock market. On the last day of 2022, Bitcoin was trading at $16,537, down more than 60% from the start of the year. According to data from analytics firm IntoTheBlock, roughly half of bitcoin investors would lose money if they sold now.
But it wasn’t all doom and gloom. Perhaps the most interesting crypto event of the year was the successful Ethereum merge (hardfork), which transitioned the network from a proof-of-work to a proof-of-stake consensus method. Also worth noting is the continued rise (and demise) of DeFi & web3 brands, and overall resistance to censorship.
But of course, 2022 holds no comparison to the year 2021, which showed a meteoric rise in the popularity of cryptocurrencies. What’s in store for cryptocurrencies this year? Here are our crypto predictions for 2023.
FURTHER CONSOLIDATION
It started happening in 2022, and it will keep going in 2023. Digital asset selection will transition towards higher grade names like Bitcoin and Ether based on factors like sustainable tokenomics, the maturity of respective ecosystems, and relative market liquidity. The riskier and more speculative coins will see a decline in interest as investors put their trust in proven markets, and that is because investors’ willingness to accumulate altcoins has been severely impacted by the deleveraging in 2022.
BYE BYE TO BROKEN BUSINESS MODELS
Every cryptocurrency has a concept, a purpose for being developed, and a target that the project is meant to reach. It should essentially solve a problem. But it became evident in 2022 that many of the projects in the industry either had no product at all, or they couldn't offer it in the way that was promised. As was often the case, investors were not even interested in the product and the price of the project was only driven by speculative enthusiasm.
The decentralised exchange Uniswap is the perfect illustration of this. According to an analysis of the exchange, the majority of the projects established on this decentralised platform were rug pulls, meaning that the token issuers merely intended to raise money from investors before disappearing.
These broken business models that cost investors millions and have detrimental effects on how the cryptocurrency industry is viewed must go. In 2023, we will continue to see a light shine on these parts of the industry that need improvement.
LIGHTNING NETWORK
Lightning Network’s continued development will help put bitcoin in the hands of more people and deliver more use cases across the board in 2023. MicroStrategy executive chairman Michael Saylor has shared his firm’s plans to release Bitcoin Lightning Network-powered software and solutions in 2023. In a Twitter Spaces event late last year, Saylor shared that the company is exploring software and solutions that utilise the Lightning Network, such as solutions that “support” enterprise marketing as well as a cybersecurity solution aimed at corporate websites.
We believe this is just one of many ways the Lightning Network will begin to be utilised to make Bitcoin more accessible globally.
MOVING OFF EXCHANGES
2022 ended with one notable trend. As a result of the FTX fiasco, bitcoin investors have begun withdrawing crypto holdings from centralised exchanges and moving them onto hardware wallets. A BanklessTimes.com analysis states that 88% of all bitcoin volume at year's end occurred outside of exchanges, which is a three-year high. The decision to hold on to one's assets rather than cashing them in suggests that investor sentiment may be shifting away from centralised exchanges.
We for one are very happy to see it!
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>So, as we begin 2023, let's take a look at 2022's biggest crypto hacks & collapses and what we can learn from them.
FTX - $7 billion
The demise of the FTX cryptocurrency exchange represents a watershed moment for the industry due in large part to its scale and significance. It was viewed as a secure space for those entering the crypto space because of it’s one million subscribers.
But that idea was squashed when it was reported that FTX allegedly lent customer money to Alameda Research, a sibling company, who then utilised it to place hazardous leveraged bets. Its own house token, FTT, which peaked at $80 in 2021 before falling to little over $1 this week, was packed onto its balance sheet.
There is more than $7 billion in lost FTX funds from 7.6m accounts. John Ray III, FTX’s current CEO who was brought in to restructure the company called it “really old-fashioned embezzlement”, and noted that FTX was “just taking money from customers, and using it for your own purpose… There were no corporate controls, no corporate oversight, no independent board. The owners, business and senior management had virtual control of all the accounts and could move money or assets as they desired, undetected by customers.”
RONIN NETWORK - $625 million
In the biggest heist of the year, over half a billion dollars worth of Ether and USDC was stolen from the Ronin Network, a blockchain that supports the non-fungible-token-based video game Axie Infinity. According to Ronin, the attackers were able to hack nodes, the computers that process network transactions. The activity went unnoticed until a user was unable to withdraw funds and filed a report.
BINANCE SMART CHAIN - $110 million
The BNB Smart Chain (BSC), a blockchain network that supports smart contracts and decentralized applications was halted in October 2022, after an exploit was discovered that drained $100 million in crypto from the platform. According to analysts and on-chain data, the hackers successfully exploited a bug in the bridge’s verified proofs that allowed them to forge approval messages and deposit the funds into their account. They were able to mint 2 billion BNB tokens as they attempted to drain the bridge of $560 million, but the hackers only successfully removed $110 million off-chain. The attack on the Binance Smart Chain network highlighted weaknesses in decentralized finance, or DeFi, where transactions are controlled by code.
LESSONS LEARNT
So what can we learn from all of the major hacks, scams and collapses of 2022?
Your assets are NOT safe on an exchange or in experimental projects/contracts. Unfortunately, as the cryptocurrency industry grows, these places are increasingly becoming targets for elaborate hack and scams. It's a highly-rewarding activity; therefore it pays for ever-increasing time and effort spent on plotting hacks. Even if an exchange/protocol follows all the safety guidelines, they will forever be in an arms race with criminals.
When you store your assets on an exchange, specifically, you rely on them to keep it safe. The problem is, exchanges are not cybersecurity enterprises. They run financial marketplaces first, and experience has shown they can’t guarantee top-notch security.
A SAFE ALTERNATIVE
There is one sure way to keep your assets safe: hardware wallets. These devices allow you to retain the ownership of your private key, while also making it easy to trade with a wide range of cryptocurrencies when you safely connect to a computer. By securely switching between the functionality of hot and cold wallets, you can rest assured that your crypto wealth is in your hands, even if you lose the device.
To check out the full range of wallets Coinstop offers, please check out our store.
]]>The Ledger Nano S Plus takes the iconic Ledger Nano S, and makes it DeFi and NFT-friendly!
As a cold storage hardware wallet, the Ledger Nano S Plus achieves the perfect balance between convenience and the highest form of security:
Here is what some of our customers had to say about the Ledger Nano S + this year:
“This is a big step up from the previous model. Easier to read the interface and to navigate.” - happy customer
“The Nano + is so much better being able to have multiple coins instead of 3..” - happy customer
The Trezor Model T was released in early 2018 but it continues to be a stand out option for cryptocurrency security. It supports more than 1000 major cryptos plus any ERC20 token. Featuring a touchscreen, double verification for transactions, PIN protection and PIN lockout, it’s another wallet that prioritises security above all else.
You can store Bitcoin, Bitcoin Cash, Ether, ERC20 tokens and many other currencies on the Trezor Model T.
Here are some of its best features:
And here is what some of our customers have said about the Trezor Model T:
“I love it! Really easy to set up and link with Exodus. Highly recommend to secure your cryptocurrencies.” - happy customer
“Easy to use. Supports most crypto. Recommended.” - happy customer
The Billfodl is constructed of 316 stainless steel, with a melting point of almost 1400 degrees celsius. It can withstand more than double the temperature of an average house fire and it’s impervious to any type of electrical hazard. Using a randomised set of character tiles, you simply recreate your recovery phrase in the steel unit, creating an almost indestructible backup.
The Billfodl is a much more permanent, solid, and dependable solution to storing your recovery phrase. Remember, your assets are safe if your 24-word recovery phrase is!
Here are some of its best features:
And here is what some of our customers have said about the Billfodl this year:
“The Billfodl is a nicely machined gadget which feels solid in the hand and is easy to use, albeit the numbers and letters are a bit small and fiddly. Once you're done it looks nice too.” - happy customer
“The Billfodl was the first purchase I made through Coinstop but definitely won’t be the last.. the item arrived very quickly and was exactly as expected.. the Billfodl was easy to use and is now sitting happily in the safe” - happy customer
We’d love to hear what your favourite security products of 2022 were! Head over to our Twitter or website. You can also view all of our favourite crypto security products here.
Stay safe and secure and have a Happy New Year from all of us here at Coinstop!
]]>Unfortunately, this isn't an uncommon occurrence in the crypto world…
In this blog post, we’re discussing why leaving your crypto on an exchange is risky and how best to safeguard your assets from future attacks.
EXCHANGES, CONVENIENT BUT DANGEROUS
There’s no doubt that exchanges are a convenient way to buy and sell cryptocurrency: you simply have to log into your account via an application or website in order to view your account balances and make transactions. But when you decide to leave your cryptocurrency on an exchange, you’re trading safety for convenience.
You see, because exchanges hold billions of dollars worth of cryptocurrency, they are enticing targets for hackers. Investors have lost over $3 billion to hackers across 125 hacks in 2022 so far, which is likely to surpass 2021 as the biggest year for hacking on record, according to blockchain analytics company Chainalysis.
But it’s not just the “outside” jobs you have to look out for. Exit scams are all too common in the crypto space, an occurrence where dodgy CEOs run a fake crypto project and then vanish once they have accumulated enough money. Take for example Faruk Fatih Özer, the founder of Thodex one of Turkey's largest crypto exchanges, who was accused of pulling an exit scam back in 2021 leaving thousands of users in the dark. It’s not a matter of if they will happen but more a case of when they will.
WHY THE CONSTANT HACKS?
One key consideration is that the cryptocurrency industry is still very much in its infancy, and with that comes a lack of regulation around most of the intermediaries. Cryptocurrency exchanges are effectively playing the role of a bank or at least part of what we traditionally rely on banks for, but without all of the oversight and regulation. Combine that with an ecosystem that’s booming with money and lacks experience and expertise, and it makes for a pretty appealing target for the unethical.
SO, HOW CAN YOU PROTECT YOURSELF?
Well, it’s pretty simple really. Move your assets onto a hardware wallet. This way, you can rest assured that your crypto wealth is in your hands and your hands only. Online digital wallets, or “hot wallets”, whether provided by a crypto exchange or a third party, all require internet access. They are considered the most vulnerable wallets in the world as they store your security keys and codes in an online environment.
Cold storage devices such as hardware wallets, however, are offline, meaning that they aren’t vulnerable to the most common hacks you see today. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
BEST COLD STORAGE SOLUTIONS
There are a few companies leading the way when it comes to cold storage solutions: Ledger & Trezor. Having sold well over 3 million devices between them to date, these two hardware wallet manufacturers are setting the standard when it comes to the usability and security of your cryptocurrencies.
As the popularity of hardware wallets has grown, so have the competitors entering the market. Here at Coinstop, we get requests almost daily from new and prospective manufacturers all over the world. Whilst we would love to stock them all, we have to be sure that we are providing our customers with only the safest wallets out there. We are always researching and reviewing samples that are sent to us in order to uncover the ‘next best thing’.
To check out the full range of wallets Coinstop offers, please check out our store.
]]>Then you're going to want to keep reading! Below we are running you through the ultimate guide to keeping your crypto secure and impervious to hacking!
A Hardware Wallet is a physical device, similar to a USB stick, that holds your crypto private keys offline, eliminating the risk of malware, keyloggers, computer viruses, or other risks that software wallets and exchanges are vulnerable to.
These devices allow you to retain the ownership of your private key, while also making it easy to trade with a wide range of cryptocurrencies when you safely connect to a computer. By securely switching between the functionality of hot and cold wallets, you can rest assured that your crypto wealth is in your hands, even if you lose the device. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. Should a thief take possession of your hardware wallet, it’s near impossible for them to extract your keys. Most hardware wallets will wipe the device after a certain amount of incorrect pin entries, further protecting your assets. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
There are a few companies leading the way when it comes to cold storage solutions: Ledger & Trezor. Having sold well over 3 million devices between them to date, these two hardware wallet manufacturers are setting the standard when it comes to the usability and security of your cryptocurrencies.
Your 12/18/24-word recovery phrase is used to access the cryptocurrency in your wallet. Anyone who knows your recovery phrase can access your wallet and funds, so it’s vital that you keep it private and secure.
If your hardware wallet breaks, is stolen or is misplaced, your recovery phrase can be used to restore it. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate the private key, there’s no way you or anyone else can recover it so you will lose access to your cryptocurrency.
Luckily, there are companies that have created devices to store your recovery phrase. The Billfodl for example is constructed of 316 stainless steel, with a melting point of almost 1400 degrees celsius. It can withstand more than double the temperature of an average house fire and it’s impervious to any type of electrical hazard. Using a randomised set of character tiles, you simply recreate your recovery phrase in the steel unit, creating an almost indestructible backup.
The Billfodl Faraday Bag is a small, portable accessory that blocks electromagnetic fields. It protects electronics from being damaged by radio frequency interference (RFI) by not allowing radio frequency or electromagnetic pulse waves to pass through the material. The Faraday Bag will also ensure the protection of your electronic devices during an EMP (Electronic Pulse, which can be caused by solar flares). This means you can store your Ledger or Trezor hardware wallet within the Faraday bag, to ensure the device and your digital assets are unaffected in the event of an EMP.
There you have it!
With just 3 products, you can ensure your crypto assets are stored in the most secure way possible.
If you'd like more assistance with your crypto security, you can book a 1:1 customised consultation with the team here at Coinstop. We can cover a range of topics from:
Here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. You can get your very own Faraday bag here.
]]>We also presume that you’ve decided to secure yours on the Billfodl, the safest and most secure way to store your 24-word recovery phrase offline, away from hackers (you’re really killing this crypto thing!!!). Maybe you’ve even received yours in the mail already and are wondering how the setup works.
Below we are going to walk you through the steps to set up your BIllfodl correctly so that your recovery phrase is locked safely away.
HOW TO SET UP THE BILLFODL
First things first, when opening the device you may notice that each slot only holds 4 keys. Don’t worry, your Billfodl isn’t broken! The device is designed to only hold four letters of each word, and we will explain why below. If you’d like to know why this is, you can read why the Billfodl only holds 4 letters of each recovery word here.
Let’s get into it.
It really is that easy! If you’d like a video tutorial the team at Privacy Pros have you covered! You can watch it here:
Want to step up your security game even further?
Check out the Billfodl Faraday Bag, a small, portable, affordable accessory that blocks electromagnetic fields. It protects electronics from being damaged by radio frequency interference (RFI) by not allowing radio frequency or electromagnetic pulse waves to pass through the material. The Faraday bag will also ensure the protection of your electronic devices during an EMP (Electromagnetic Pulse, which can be caused by solar flares). This means you can store your Ledger, Trezor or KeepKey hardware wallet within the Faraday bag, to ensure the devices and your digital assets are unaffected in the event of an EMP.
Here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. You can get your very own Faraday bag here.
]]>An ever-increasing portion of the world's population is now looking towards crypto, which offers protection from the world’s economic deterioration, for reasons ranging from the desire to maintain wealth amid collapsing fiat currencies to finding a trustworthy way to transfer value across borders.
But just like with any investment class, you must ensure to use caution before jumping into the cryptocurrency market. The below tips can serve as significant support for anyone trying their hand at crypto investments for the first time.
NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE
Any wise and successful investor will advise you to only invest money you can afford to lose. This holds true for all markets but is especially true for cryptocurrency, which can experience hourly declines in the double digits. There are too many horror stories of investors spending their entire life savings only to lose everything.
Unprecedented value increases and equally significant value declines have occurred in the cryptocurrency market. Remember that the market is still in its infancy, without early-stage technical impediments or regulatory inspections. This can result in events like hacking, fraud, and a flurry of sell orders that could seem to occur at random. As much as you think you know what is coming next in the market, you can never be one hundred per cent sure, so never invest more than you can afford to lose.
DOLLAR-COST AVERAGING
Volatility is a key characteristic of the crypto market, and Dollar-cost-averaging (DCA) is employed to combat it. DCA is an investment strategy in which a person divides up the total amount to be invested across periodic purchases in an effort to reduce the impact of volatility on the overall purchase. You can reduce losses and spend your money more effectively by making gradual, incremental investments.
It is important to keep in mind that utilising this strategy will result in somewhat higher network prices, but any gains you realise should make up for this. The frequency is up to you; you might do it once a week or once a month. Of course, the more regular you do it, the more effective the strategy becomes. And if you have a strong sense of where the market is headed, you may want to set away some additional money for when it appears to be at a low point.
STICK TO THE MAJORS
The somewhat complex method of researching cryptocurrencies may be scary to some. For these people, it could be best to remain with the major assets that have stood the test of time. The best examples of these assets are Bitcoin and Ethereum, both of which have weathered numerous bear markets.
There are others as well, however it is considerably more difficult to predict if these assets with high market capitalisations will be around in the future. Of course, the same could be said for both Bitcoin and Ethereum, but it's generally agreed that these two have already established themselves as viable options.
MOVE YOUR COINS ONTO SAFE STORAGE
Safe storage is a key requirement when investing in cryptocurrency. Investors frequently lose access to their exchange accounts or, in the worst-case scenario, lose all of their money as a result of a hack or security event. It is your responsibility to store your cryptocurrency assets securely.
The best way to do that is with a hardware wallet. To prevent your money from being stolen, these wallets offer extra security features. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied.
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>DOLLAR-COST AVERAGING
Dollar-cost-averaging (DCA) is an investment strategy in which a person divides up the total amount to be invested across periodic purchases in an effort to reduce the impact of volatility on the overall purchase. The direction that an asset is moving in the short term—up, down, or sideways—becomes less significant when buying Bitcoin in tiny, regular portions with an eye towards its long-term potential.
For instance, the DCA calculator at CryptoHead estimates that $1 put into Bitcoin each month after it reached a peak of around $20,000 in December 2017 has generated cumulative returns for investors of $163. That translates to almost a 200% return on continuous investments.
TIMING THE MARKET
Market timing is the tactic of attempting to predict tops and bottoms based on your expectations for future prices, then buying in bulk or off-loading to maximise returns. Of course, if you do it well, you may make a tonne of money, but it can be challenging with a volatile asset like Bitcoin that has quadrupled multiple times in a short amount of time. Unless you are a highly skilled trader, timing the market can see you lose out quickly.
HODLING
If you are new to the world of cryptocurrency, you may have recently encountered this word in some form and are not aware of its meaning. The term was accidentally created when an online forum post back in 2013 went viral after a bitcoiner tried to say — supposedly drunk at the time — that he would be holding on to his coins. HODL quickly became an official term for not selling your crypto and rather holding onto it as an investment, even when the market dips. If you had purchased Bitcoin at the very start and HODLed your coins, your profits would be extraordinary. In the 13 years since its inception, Bitcoin has climbed exponentially from $0.08 USD to a high of over $65,000 USD, now sitting at just over $45,000 USD. Luckily, many believe that Bitcoin is still in its infancy and you will still be early if you buy & HODL now!
MOVE YOUR COINS ONTO A HARDWARE WALLET
Once you’ve purchased crypto, it’s important to ensure you’re storing it safely and securely. There’s no doubt that exchanges and third-party applications are a convenient way to buy and manage cryptocurrency: you simply have to log into your account via an application or website in order to view your account balances and make transactions. But when you decide to leave your cryptocurrency on a third-party application such as an exchange, you’re trading safety for convenience.
You see, because exchanges hold billions of dollars worth of cryptocurrency, they are enticing targets for hackers. Overall, it is estimated that at least $11 billion worth of cryptocurrencies have been stolen since 2011.
This is where a hardware wallet comes in handy. Cold storage hardware wallets allow you to move your assets offline AND keep ownership of your private key. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage.
STORE YOUR RECOVERY PHRASE SAFELY
A recovery phrase, or seed phrase, is the 12/18/24 words generated by your hardware wallet during the initial setup process. It is used to encrypt your private key into an easier-to-understand format (i.e. instead of a string of letters and numbers) which can then be used to identify, authenticate, and grant you access to the cryptocurrency in your wallet. Therefore, anyone who knows your recovery phrase can access your wallet and funds.
Not to mention that if your hardware wallet breaks, is stolen, or is misplaced, your recovery phrase can be used to restore it. But if your recovery phrase is stolen or misplaced, there is no bank or institution to back you up or give you a replacement. And because of the secure nature and random mathematical sequences used to generate the private key, there’s no way you or anyone else can recover it, so you will lose access to your cryptocurrency.
So, it’s vital that you keep it private and secure.
But what are the best ways in which to protect your recovery phrase?
DEVELOP AN EXIT STRATEGY
Every solid plan needs to include a way out!
According to science, when we make profitable trades, our brain releases dopamine, which makes us feel good about our choices. Without a plan for leaving, that positive emotion will encourage us to stay as a feedback loop begins. Why? Dopamine is a neurotransmitter that increases with more profits, which makes us stay in a transaction. In the event that the market does crash, we anticipate a recovery. In a perfect world, the cryptocurrency market would rise once more. The worst-case scenario, though, is that the correction keeps increasing.
With this in mind, a skilled trader will always consider their exit strategy. Set a plan for the price at which you will conclude the deal for a profit and the price at which you will close it for a loss. Make sure you follow your plan!
With cryptocurrency, you can own your hard-earned money rather than leave it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
**The information presented above is for educational purposes only and does not constitute specific investment, accounting, legal, or tax advice. You should seek legal advice or other professional advice in relation to any particular matters you or your organisation may have.
]]>Reverting to the fundamentals is always a wise idea when in doubt. Let's examine how Bitcoin, and the Blockchain technology it runs on, functions and why it is genuinely poised to revolutionise society.
WHAT IS BLOCKCHAIN TECHNOLOGY?
Blockchain is the technology that enables the existence of cryptocurrency (among other things!). It’s a structure that stores transactional records, also known as blocks, in several parts, and when connected forms a “chain,” in a network of peer-to-peer nodes. This storage is referred to as a ‘digital ledger.’ Every transaction in this ledger is authorised by the digital signature of the owner, which authenticates the transaction and safeguards it from tampering. This makes the information the digital ledger contains highly secure.
Let's break this down into clearer terms since it can be a little hard to understand. The digital ledger is like a Google spreadsheet, in which transactional records are stored based on actual purchases. A network of computers uses the spreadsheet in conjunction with one another. The great thing is that anybody can see the data, but they can’t corrupt it.
HOW DOES THE BITCOIN BLOCKCHAIN WORK?
The Bitcoin blockchain is a database of transactions secured by encryption and validated by peers. Here's how it works. The blockchain is dispersed across numerous computers and systems inside the network; it is not kept in a single location. These systems are called nodes. Each node has a copy of the blockchain, and each copy is updated each time a change to the blockchain is confirmed.
The blockchain consists of blocks, which store data about transactions, previous blocks, addresses, and the code that executes the transactions and runs the blockchain.
WHY IS IT SO IMPORTANT?
There are a lot of advantages to using the blockchain network. Let’s take a look:
Accuracy of the chain - Transactions that are part of the blockchain have to be approved by thousands of computers. This removes all human involvement in the verification process, which means there are fewer human errors, as well as a more accurate record of information. What happens if one of the computers in the network makes a mistake? The error would only be in one copy of the blockchain and for it to spread, at least 51% of the network would need to have the same mistake, which is highly unlikely. The incorrect entry would then simply be discarded and the consensus ledger would continue.
Eliminating the need for third-party verifiers - Blockchain data is decentralised, which means that it is not stored in a central location but instead copied and spread across a vast network of computers. This makes it very hard for anyone to tamper with the data as they would need access to all of the networks to fully compromise it.
No access to identifying information - although anyone with an internet connection can see the list of the network's transaction history and access details about transactions, no one can access identifying information about the users that are making those transactions.
HOW IS BITCOIN CHANGING THE WORLD?
Ownership - Bitcoin and cryptocurrencies are a decentralised form of value, meaning they are not at the control of a single individual or institution. There is no need for a middleman such as a bank or government, making it a completely peer-to-peer electronic cash system. It’s decentralised nature makes it globally inclusive, enabling millions of people around the world to take control of their financial future. You don’t have to rely on a third party service to give you access to your funds, and there is no entity that can lock you out or limit what you can do. You have complete ownership over your assets.
Accessibility - Bitcoin allows any bank, business or individual to securely send and receive payments anywhere at any time, with or without a bank account. For many, the idea of not using a bank seems unimaginable, but there are places around the world where proximity or political situations make banking not an option. Take for example El Salvador, where roughly 70% of its people do not own a bank account or credit card. In such places, out of necessity, the concept of digital currency has been accepted more readily. El Salvador has recently become the first country in the world to adopt bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency. This move will help El Salvador’s residents save, invest and obtain profits in a place with little access to bank branches.
Transparency - Unlike fiat currency, which is backed by a central authority (the U.S. government for the U.S. dollar, the EU for the euro), bitcoin is backed by a widely distributed network. The transparency of this network is fundamental to the success of Bitcoin as a safe alternative to the standard banking system. Since Bitcoin transactions require verification and authentication, offering a permanent record of every transaction ever made, the use of Bitcoin is safe, secure, and actually offers more transparency about how funds are managed than regular, closed-off banking systems, where decision making is done behind closed doors.
That’s reason enough for us to back Bitcoin & Blockchain technology all the way!
With cryptocurrency, you can own your hard-earned money rather than leaving it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
]]>These terms are used to describe lengthier periods of either largely upward or downward movement because the crypto market is typically volatile and varies on a daily basis. Similarly, significant swings in either direction (of at least 20%) point to market developments.
We'll concentrate on how these trends relate to cryptocurrency in the below article. In particular, we'll talk about: What are bullish and bearish markets? What distinguishes bull markets from bear markets? And how to determine if we are in a bull or bear market.
WHAT IS A BULL MARKET?
It simply refers to rising prices in a market (stocks, cryptocurrencies, or anything else). The American Financial Services company Morningstar, Inc. examined the stock market for a period of around 90 years (1926–2014) and found that the average bull market lasted about eight and a half years, with a 20% increase from a stock's low typically indicating the start of a bull market.
In a bull market (also known as a bull run), prices rise, demand outpaces supply, and confidence in the market is at an all-time high. 2021 provided a textbook example of a cryptocurrency bull run before the May 2022 crash. The first half of the year saw a boom in cryptocurrency prices, with many reaching all-time highs (ATH) in November 2021. Global companies such as PayPal, MasterCard, Tesla & MicroStrategy all jumped on the bandwagon and adoption was seemingly at an all-time high.
WHAT CAUSES A BULL MARKET?
CHARACTERISTICS OF A BULL MARKET
Typical behaviours and attitudes that define a crypto bull market include:
WHAT IS A BEAR MARKET?
In a bear market, the value of cryptocurrency drops by at least 20% and is still declining. As an example, consider the well-known cryptocurrency meltdown in December 2017 when investors witnessed Bitcoin drop from $20,000 to $3,200 within a short period of time.
A decline of 20% or more from prior highs is indicative of a declining bear market. As a result, prices are low and steadily declining. The downward pattern continues as a result of the declining trend, which also impacts investors' expectations.
WHAT CAUSES A BEAR MARKET?
A bear market in cryptocurrencies can be brought on by a number of things, including:
CHARACTERISTICS OF A BEAR MARKET
Typical characteristics of a crypto bear market include:
WHAT’S THE MOST IMPORTANT THING TO REMEMBER DURING A BULL OR BEAR MARKET?
No matter what the markets are doing, the most important thing for you to do as an investor is to protect your assets! And the best way to do that is by storing them on a cold storage hardware wallet. Cold storage hardware wallets allow you to move your assets offline AND keep ownership of your private key. Your private keys are generated and stored on the hardware wallet which is then protected by a PIN and an optional passphrase. The keys are never exposed to the internet so they can’t be stolen or copied. That’s why it’s known as cold storage. You and only you are in ownership of your assets.
Here at Coinstop, we want to help you secure your cryptocurrency. That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!
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