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The IMF on Tuesday called on El Salvador to change course and stop using bitcoin as legal tender, citing "large risks" posed by the cryptocurrency.

Opinion

8 things to consider before you choose a Crypto wallet, exchanges, Or ICO

The surge of cryptocurrencies over the last couple of years has made one thing clear that no matter how long it takes, in upcoming years, traditional currencies might be replaced by digital currencies.

As more individuals and institutes are getting aware of the world of cryptocurrencies, the industry market worth is also increasing simultaneously. Besides the fact that digital currencies are under criticism by regulatory authorities, still millions of people are interested in crypto investment opportunities.

A decade ago, there were only a bunch of digital currencies along with the bitcoin that was offered by limited sources, but now there are around 4000 cryptocurrencies and several crypto exchanges. Back then, it was not that easy to secure coins from hackers and scammers, but now one can save digital coins in many ways.

While buying a digital currency, it requires a crypto wallet where your coin would be stored and fiat-to-crypto exchange to buy the cryptocurrency in return for fiat currency, like buying bitcoin through US Dollar, euro, or sterling. 

It is very important to make sure that the exchange you are choosing is well-known and well-reputed in the industry, otherwise, it would be considered a huge risk if the exchange is not secure enough. Read the article further to get enlightened about some important aspects that you must consider before choosing a crypto wallet or exchange.

Technology used

Open source wallets enable third parties to review their code in its eternity, meaning that if there is anything inappropriate, it would be reported widely. Cryptocurrency users who are in the crypto business for a long time do not feel secure enough when they use wallets with proprietary code as they are unable to see what’s under the hood. Not many crypto users are aware of the fact that many new wallets are not quite ready for mass consumption.

Plus, it is also important to know whether a private key is stored on their servers or you hold it. It would be better if you hold it, and also two-factor authentication which is something necessary to check while going through tech aspects of the crypto wallet service provider.

Company reputation

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Reputation is something that assures that the exchange or crypto wallet is not new in the market and holds a significant customer base. Furthermore, try to get their history and see whether the company has encountered any incidents of insider hacking and digital currency losses due to glitchy software or poor data management practices. Trading platforms like bitiqapp.com are quite popular when it comes to reputation.

Multiple cryptocurrencies

Many exchanges and wallets allow their users to work with multiple cryptocurrencies under one roof. Before you open a new wallet or verify your account on an exchange, it would be better to first get familiar with which cryptocurrencies they have to offer. 

Some wallets are specifically built for only one cryptocurrency whereas some exchanges only deal in mainstream altcoins. For instance, Coinomi is a well-known multi-coin mobile wallet whereas Mycelium is a very robust Bitcoin-only wallet.

Backup features

Laptops could die anytime, you cannot trust the hardware anymore. That’s why cloud services are getting more popular and backup features hold great significance in deciding whether to select the wallet provider or not. 

It is very important to ensure that wallets you are considering have a proper backup mechanism or not? A decent backup mechanism must have passwords, rescue links, passphrases, or a number to get everything back up and running again smoothly.

Shared account

MultiSig is relatively a new feature that allows users to set up multiple private keys for a single wallet and is considered ideal for business partners and families. In such wallets, the transaction is only confirmed when all parties sharing a crypto wallet are on the same page. In other words, it’s sort of a joint crypto wallet.

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Cryptocurrency conversion

If the wallet provider allows you to convert one cryptocurrency into another, you should better consider it. This integration within your wallet will make your life easier. Wallets with cryptocurrency conversion facilities eliminate a big portion of user’s stress while dealing in cryptocurrencies.

QR Code Scanner

If you are interested in a mobile wallet, a QR scanner is the most important feature that you must look for. Efficient mobile crypto wallets will be able to generate and scan a QR code for digital currency transfer. This helps crypto wallet users to get free from the hustle of typing long private keys to send or receive funds.

Customer service

When the market value of a digital currency can rise and fall quickly, the efficiency of the platform’s customer service is very important, especially when something goes wrong. When considering the crypto wallet or exchange, make sure that customer service is active.

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