Keep Crypto Simple — it’s easy!
Now that you are at home, complying with the authorities’ recommendations to prevent the coronavirus transmission, at keyruptive.com — where privacy meets convenience — we want to give you a chance to learn more about cryptocurrencies.
In this sense, our team selected some questions that will help you take your first steps with crypto and most importantly, stay safe — as we hope you are now.
Keyruptive is a mobile application for the secure storage and management of your digital assets. We want to offer you security levels similar to hardware wallets, but with the convenience of a online mobile app.
If you are interested in cryptocurrencies, you can take complete control and keep your crypto funds safe, but always in the most convenient way.
What are cryptocurrencies?
A cryptocurrency is an online digital currency. Instead of relying on a central controller (e.g. bank), cryptocurrency is distributed among thousands of parties, which together with public-private cryptography (hence the Crypto part in Cryptocurrency) allows direct transfers of funds between participants. To send a transaction to someone in the network you just have to sign it with your private key that is only known to you. Make no mistake, managing cryptocurrency can be hard and cumbersome that’s why we have created Keyruptive — cryptocurrencies made simple.
How do cryptocurrencies differ from other forms of payment?
Traditionally, in order to digitally transaction funds you would require some mediator institution such as a bank. With Cryptocurrency you are the only one who has immediate and exclusive access to your funds. Every user on the blockchain has an associated passphrase or private key, which you use to sign and execute a transaction to another entity without the need for a central authority to mediate it. Your passphrase is equivalent to your assets, so the safer your passphrase is stored, the safer your funds will be.
How is the price of cryptocurrency determined?
In a nutshell, the price of a specific cryptocurrency is determined by the market. The price is determined by the balance between prices set by sellers and buyers. Many factors may determine these prices and, as in every other market, it is very hard to determine all the variables influencing how the market behaves. For Bitcoin, for instance, since the system relies on machines doing computational work, which depend on energy, the price of electricity is a major factor in determining transaction fees.
Are my coins safe on exchanges?
The correct question should be: do you trust the exchange to hold and manage your money? At the end of the day, it is all about trust. If the exchange has your keys, therefore your coins, then you are not in control. There are a number of reasons to have coin in exchanges, convenience being one of them, but trusting a centralised entity with your keys has proven to be very bad in the past. Exchanges are a honey pot for hackers and thieves any significant problem with an exchange will affect you deeply.
Can a transaction be traced back to me?
On most systems supporting cryptocurrency, all transactions are public. However, what this means is that, for a transaction, the sender address and receiver address are known, which is not the same as knowing to whom such addresses belong to. Naturally, there are ways to try and figure this information out but if you follow each system’s rules and best practices, you will be able to maintain a good level of privacy.
What is a passphrase and why is so important to keep it safe?
Each crypto wallet has a secret key, which allows the wallet owner to sign transactions and manage the wallet funds. This secret key, in practice is equivalent to the funds themselves. If lost or stolen it cannot be recovered. In order to make the storage and access to this secret key more manageable by humans, it can be represented by a set of dictionary words. To this set of words we usually call a passphrase. Since, by definition, this passphrase can be translated into the secret key itself it also represents the funds. This is why it is very important to keep the passphrase safe. If it is safe, you can use it to recover your account in case something happens and no one can use it to steal your funds.
What do I need to use cryptocurrency?
First of all, it is important to know that there are many, many, many cryptocurrencies. The most common are Bitcoin (BTC) and Ethereum (ETH) but there are hundreds of different currencies and variations. Each one has its own assumptions, target usage, and technology. In order to use a specific cryptocurrency, the first step should be understanding its core values and origins and see if it matches your own values and goals. Keep in mind that, in this space, there are also scams in abundance and it is important to find help in your way into the crypto world.
On top of this, slightly philosophical aspect of your first steps, and in more technical terms, you will need a crypto wallet. A crypto wallet is a piece of software or specific hardware combined with a piece of software, which allows you to receive and send cryptocurrency. There are many different wallets available in the market. Choose wisely since a secure wallet is mandatory! The wallet will hold your funds so it is important that you choose one that keeps them safe.
After setting up your wallet, you will have to acquire crypto currency. This can be done through an exchange, which is a company/organization/individual that accepts fiat currency in exchange for crypto currency. As in traditional currency exchanges, there are many different entities providing this service at different conditions and costs. Caution is advised here as well.
Once you have purchased crypto currency and successfully received it in your wallet, you are all set up!
We encourage you to go through all this step by step and to get help from someone knowledgeable and trustworthy. You are closer than ever to have full control over your funds! Enjoy the freedom!
Can I use cryptocurrency on a daily basis?
Yes you can. There are already many stores and services accepting crypto. Of course there is still a long way to go until mass adoption from merchants and the industry but the range of deployment is increasing fast. Projects such as UTRUST are speeding up the process. Check them out!
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