Basics of Money

It’s very essential to understand what is money the very thing we use every single day. With this basic intro to money and economics you will be able to understand the true value of human capital and time.

These are two best short videos to get you started on Money and economics !

Wallets

 “Not Your Keys, not Your Bitcoin”

Before we talk about Bitcoin wallets, you should first understand these terms:

  • Bitcoin Address is a public identifier made of alphanumeric characters which represent a destination for a bitcoin payment. You generate one free of charge and can share it with others to receive Bitcoin from them. Everytime you receive a transaction, this address can be reused infinite time or you can generate new and increasing privacy.
  • Private Key ,also known as seed or secret key ,is a secret number that allows you to spend your Bitcoin. It is issued along the Bitcoin address and it must be kept secret and secure, because once you lose your seed you will never be able to recover it and once you give it to someone you are giving away access to your Bitcoin.

Custodial vs Non-custodial wallets:

  • Custodial Wallets are wallets whereby your private keys and funds are controlled fully by the third party, such as exchanges or services. On one hand, you do not have to worry about losing your private key, but on the other there is a chance your funds get lost if the third party gets hacked or if it blocks you out. “Not your keys, not your bitcoin”.
  • Noncustodial Wallets allows you to be the sole controller of the private keys and your funds. A big disadvantage though is that if you forget your private key (or mnemonic seed) then Bitcoin can never be acquired again or recovered. This is why it is recommended to write down the recovery phrase on a piece of paper with few backups and also on an offline Hardware wallet .
  • It is highly recommended to use noncustodial wallets over custodial wallets. So for example as soon as you buy cryptocurrency from an exchange, directly transfer your coins to a non custodial wallet to keep them safe from any potential hack on exchange.

You will see there are two main types of cryptocurrency wallets:

  • Hardware wallet: Stores securely a user’s private keys in a safe hardware device. This type of wallet is recommended for large sums of bitcoin. There are numerous companies, with the three top companies being Ledger, TREZOR and KeepKey.

 

  • Hot wallets: The wallet is connected to the internet and conveniently stores bitcoin. They are however less secure due to their exposure to the internet, examples include desktop, mobile phone or web wallets.

It is best to use open source hot wallets , it means that is open to public its code how it’s written therefore you will not be tricked into using a wallet that could trick you or scam you our of your Bitcoins. Our Personal recommendation is : https://bluewallet.io/ 

Check this video for more in depth information in plain English about cryptocurrency wallets.

Choose your wallet using this step-by-step guide on bitcoin.org

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