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6 reasons why you should hold your own private keys

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A private key, on the other hand, is like the password and must be kept secret. 6 reasons why you should hold your own private keys

Various instances enforcing us to hold on to our private keys safely

 

The private key and public key are the two main set of string characters which are used to identify addresses and access them respectively. A public key is nothing but an address given to our cryptocurrency wallet which the other users can use to send cryptocurrencies. It can be related to a bank account number which can be revealed to everybody for the transfer of money. A private key, on the other hand, is like the password and must be kept secret. A private key is like a security code without which one cannot have access to their own cryptocurrency funds. In banking terms, this can be referred to as the ATM PIN number which one keeps as a closely guarded secret.

There are a number of ways one can apply in order to safeguard their private keys. A number of companies offer online as well as offline wallets. In Layman’s terms, a wallet is nothing but a place to store our public and private keys. The online wallet services include web wallet, cloud wallets, etc. Offline wallet services include hardware wallets, paper wallets, etc. Among these to the hardware wallets are the most preferred one because they impart the highest level of security due to its cold storage and offline nature.

In the recent days, the hacks which the Crypto exchanges experienced are living example as to why one must not leave their cryptocurrencies funds on the exchange itself. One must make sure that the funds are transferred on to the exchange only when they need to be traded and store them back into the cold wallet reserves once they are done with the trading.

 

There is a number of potential reasons why one must keep their private keys with themselves:

 

  1. A number of cryptocurrency exchanges glorify themselves to be on the most trustable one and even convince their customers. But that have been instances where the cryptocurrency exchange itself took control of all the private keys and flew away with the trading funds.

 

  1. There are incidents where hot wallet reserves, the online e-storage point for private and public keys, was attacked by a malicious group of hackers and a many private keys were stolen.  Which led to a loss of huge amounts of cryptocurrency.

 

  1. There also chances where the centralized cloud storage services may tempt to sneak into your personal data stored on the servers. After all, when one can have easy access to someones private key, without them knowing this, then there is effectively no way one can claim thefts. Storing your private keys on cloud storage services like Dropbox or Google Drive is not preferred.

 

  1. In general, storage of the private keys online is highly vulnerable due to the fact that hackers have relatively higher chances to decode the systems encryption security when it is connected to the internet. If the system itself is not connected to the internet, it further enhances security

 

  1. One must choose a complex private key. Since it is well known that a private key is the one which gives rise to a public address. Choosing a complex private key will disable the hackers or will decrease the chances of hacking. Imagine if one chooses a simple private key as “12345”. This private key would generate a public address. The hackers can track the address generated by this private key on the whole Blockchain Network and whenever they find an incoming transaction from this public address. They interfere in the transaction and by using the private key, might change the receiver of the transaction and transfer them into some other public address of their choice. Hence choosing a complex private key is very crucial.

 

  1. Sometimes the wallet service provided by the companies might become careless enough to lose the private keys out of carelessness. According to some reports, almost 20% of the total number of Bitcoins have already been lost forever due to the improper precautions. Even the hardware wallets which one uses to store Bitcoins must be carefully preserved and regularly double-checked. The loss of the hardware wallet is can be one of the worst nightmares.

 

Hot wallets are generally used in order to provide fluidity in transactions. However one must make sure that hefty amounts of Bitcoins aren’t stored in the hot wallets apart from the required amount. The offline wallet is generally used by large organizations in the form of computers or pen drive like devices in order to store massive amounts of cryptocurrencies.

 

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#Exchange

Vietnam launching a regulated cryptocurrency exchange

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Vietnam is all set to launch a regulated crypto exchange as two companies have just signed an MOU for the development and licensing for a crypto exchange.

Vietnam is all set to launch a regulated crypto exchange as two companies have just signed an MOU for the development and obtaining licensing for a cryptocurrency exchange.

Partnership for the cryptocurrency exchange:

According to an article published by PRNewswire, Linh Thanh Group, which is the biggest distributor in the country is partnering with Kronn Ventures AG, a blockchain company located in Switzerland for the development of the cryptocurrency exchange.

Recently, Kronn Ventures AG created an association with the financial committees around Asia which included countries like Bangladesh, Sri Lanka, Cambodia as well as Vietnam. The motive of the association is to use blockchain technology to create a worldwide wiring system that suits the environment of the Asian continent.

According to the report, Linh Thanh Group has officially stated that partnering with the Kronn Ventures AG will help both the companies in creating a cryptocurrency exchange that is world class. Kronn Ventures is quite famous for their work in the field of blockchain in Switzerland.

 

Regulation in Vietnam:

The government of Vietnam had earlier seized the domain name of the biggest BTC exchange in the country as the company was accused of allowing e-commerce services without seeking regulations from the authorities.

Also at the end of last year, Vietnam’s ministry of justice had proposed various methods which could help in regulating cryptocurrencies in Vietnam. The regulatory authorities had also explored the pros and cons of cryptocurrency regulations in the country.

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#Exchange

Mt Gox: Has the time come when Mt.Gox Creditors will be paid?

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As reported by the Mt Gox trustee, They still have 141,000 BTC and 142,000 BCH and the trustee seems to be taking charge to return the funds to the victims.

The small cryptocurrency community back then was in shock when the biggest bitcoin exchange Mt Gox (at that time) was hacked and around 850,000 BTC were stolen which were worth around $450 million back then and around $3.4 billion according to today’s price. Years have passed since the incident, however, only a few the victims have received their share and most of them are still waiting for their lost funds.

 

Mt Gox to credit victims?

As reported by Nobuaki Kobayashi, the Mt Gox trustee, Mt Gox still has more than 141,000 Bitcoin and 142,000 Bitcoin Cash and the trustee seems to be taking charge to return the following funds to the victims. The victims were super excited to hear this and Twitter seems to be full of tweets claiming that the exchange has finally made its decision of returning the lost funds to the victims.


However, it is worth noting that Mt Gox might have more than $631 million worth of Bitcoin and Bitcoin Cash, the number of funds to be compensated are likely much more than this amount. The other documents on the website claim that the victims shall be sent a notification regarding the approval or disapproval of their claims based upon their type of filing (online or email).

 

Nobuaki Kobayashi said that after a few days, the Rehabilitation Trustee of Mt Gox will be announcing the results of the claims filed by the victims. The result will showcase whether or not their claims have been accepted.

 

Missed the deadline?

If you are one of the victims and you’ve somehow missed submitting your claim, you can still download the claim form from the Mt Gox website. However, if these claims made after the deadline shall be accepted for refunds will be decided by the court.

 

Is there any timeline for the claims?

According to Nobuaki Kobayashi. he will contact the victims soon. So there is no specific timeline as to when the funds will return to the victims. However, it is still great news for the people who have been waiting for over 5 years and they are surely happy about the fact that they will soon be compensated.

 

Cryptocurrency investors are now wondering how will this affect the bitcoin price? What do you think? Tell us in the comments section below.

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#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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