Crypto account. What is cryptocurrency in simple words: types, pros and cons of cryptocurrencies

Virtual currencies have gained the attention of millions of Internet users over the past few years. After all, electronic money is not just a means of payment, but a promising way of investing and own capital. Surely many users know how to get bitcoins and other cryptocurrencies, especially those who have already had experience in mining or purchasing coins. The most important point is the storage of virtual funds, so we will answer questions about how to open an account in bitcoins.

Types of wallets

Here, first of all, there is the issue of security, because with the increase in the value of cryptocoins, cases of their theft have become more frequent. That is why the task of every crypto coin owner is to find a wallet that is not just convenient and functional, but also safe. However, the choice here is quite large, so we will analyze all the options on how to open an account for cryptocurrency.

PC Software

If we talk about security, this method is quite acceptable for users. The essence of this wallet is that you will need to install the program on your computer, access to it will be available both online and offline. That is, the Internet is not required to access your personal account.

If we talk about the advantages of the software, then the user’s possibilities are limitless; he can view the history of transactions at any time, but attackers will not be able to gain access to the wallet data. Among other things, the wallet is synchronized automatically after access to the Internet is opened. If we talk about the disadvantages, these wallets require space, as they take up a lot of RAM. Among other things, installing such software requires a powerful personal computer.

Installing and downloading such a wallet will be quite simple; you can use several services, for example:

• Bitcoin Knots;
• Bitcoin Core;
• GreenAddress and others.

It is important that there are two versions of the programs: full and light; for each user, the light version is more acceptable, but not the most secure for the reason that the full version loads the entire blockchain chain when making transactions.

Actually, the choice of wallet in any case remains with the user, and besides, you can find a description and functionality of the software on the Internet without difficulty. By the way, it is worth paying attention to the description of the program, since, indeed, their functionality may differ significantly. But in general, installing a wallet should not raise any questions; it is no different from other computer programs.

In the same way, you can install software for mobile devices, for Android, iPhone, Windows Phone. This is the most convenient way for users because they can access their virtual account around the clock, regardless of their location. But, however, there is one significant drawback to storing bitcoins on mobile devices: you cannot download the full blockchain chain to a smartphone or iPhone due to limited memory.

Wallets online

Another option is to store your virtual coins online. There are several convenient and relatively safe services for this. These include

• Strongcoin;
• Circle;
• Xapo et al.

In order to access a financial account, you need to have access to the Internet. Data about user accounts is stored online, which means that attackers can theoretically hack the system, but in practice all keys are generated online and stored on cloud services. The convenience of an online wallet is that you can use your account not only on a personal computer, but also on any mobile device with Internet access. If we talk about shortcomings, then the issue of security is in doubt, for the simple reason that the service that stores the user’s keys can be hacked or fail.

Hardware wallets

If we talk about the best way to store virtual currency, then a hardware wallet is it. Its essence lies in the fact that the owner of the cryptocurrency must purchase a special device that looks like a regular flash drive. This is a kind of safe for cryptocurrency, of course, it will be almost impossible to hack it, at least until the user loses the hardware wallet.

The choice of such devices is quite large, but the leading positions on the market are occupied by devices such as Trezor or KeepKey. In order to become the owner of a hardware wallet, you will need to purchase it, most likely in foreign stores, its cost is about 5,000–6,000 rubles. And one more significant nuance: you will have to wait about 3-4 weeks for its delivery.

Using such a device will be quite simple; the cryptocurrency stored in hardware wallet accounts is reliably protected from theft. The flash drive just needs to be connected to any device, for example, a tablet or personal computer, in order to gain access to the wallet. Login to the wallet is carried out using a private key, so even if the device is lost, attackers are unlikely to be able to gain access to it.

Please note that when choosing a wallet for storing cryptocurrency, it is advisable to choose multi-currency wallets insofar as they allow you to store several virtual currencies at once, for example, you can simultaneously store ether, bitcoins, litecoins, and other well-known coins.

Among other things, we cannot help but say that you can register a wallet for virtual currency on exchanges, one of which is exmo.me. Here you can register a personal account and store electronic money, exchange it for real rubles, dollars or euros, as well as perform other operations. By the way, the convenience of the exchange lies in the fact that here you can monitor currency exchange rate fluctuations in real time, especially if you want to make a profit from your virtual savings.

Is it possible to open a virtual currency account at a bank?

It’s worth starting with the fact that in some countries Bitcoin and other cryptocurrencies are actually used as means of payment or, in other words, with the help of virtual coins you can purchase real goods. For example, in Cyprus, a few years ago, bitcoins were accepted to pay for university tuition. Unfortunately, in our country the circulation of bitcoins and other cryptocurrencies is in no way regulated.

Despite the fact that the government has already considered the option of legalizing the circulation of virtual coins, no such decision has been made at the moment. Accordingly, it is impossible to store virtual coins, in particular Bitcoin. It follows that banks will not open an account for you in virtual coins, at least, such a possibility does not exist until the use of virtual coins is stipulated at the legislative level.

To summarize, opening a Bitcoin wallet account will not be difficult for you, you just need to decide which wallet to choose online hardware or software. Mostly, users do not have any questions about installing this or that wallet.

Unique innovative offer! Trade Bitcoin, Litecoin, Namecoin, Peercoin in pairs with USD, EUR and RUB, taking advantage of all the advantages of ECN trading!

In the face of rapidly growing popularity Bitcoin and other cryptocurrencies, FXOpen has launched a new type of trading account - Crypto.

Bitcoin, Litecoin, Namecoin and Peercoin are promising and highly liquid instruments for speculative trading and investment, thanks to unprecedented price increases and high volatility.

FXOpen gives you the ability to trade directly cryptocurrencies Bitcoin, Litecoin, Namecoin and Peercoin in pairs with the US dollar, Euro and Russian ruble! Liquidity for FXOpen Crypto accounts is provided by the largest online exchanges, which is used to hedge client risks. The execution technology is based on the unique FXOpen ECN Aggregator system.

At the same time, you receive a market spread and low commissions, and the broker is interested in you trading successfully and increasing your trading volume. Scalping, hedging, locking and any types of advisors are allowed on Crypto accounts. Leverage is available 1:3.

• *To calculate all account indicators (including balance, profit, etc.) MetaTrader 4 uses a fractional unit mBTC. 1 mBTC = 0.001 BTC.
• *For all account indicators (including balance, profit, etc.) in MetaTrader 4, the unit is 1 LTC.
• **Commission for a full circle is 1% on the transaction volume in the base currency. When you open a transaction in the MetaTrader 4 terminal, you will immediately see the commission charged for the full circle (opening + closing a transaction).
  The minimum commission for a transaction is 0.01 units of the MT4 account currency.
  The size of the commission may be revised for large trading volumes.
• When opening an account through FXOpen partners (introducing broker, franchise or other form of partnership), the ECN commission may be different. For detailed information, contact the agent who provided you with the link to open an account.
• For transferring positions to the next trading day, SWAP is charged in the amount of 10% per annum from the value of the position. For transferring an open position from Wednesday to Thursday, SWAP will be charged triple.

Unique innovative offer! Trade Bitcoin, Litecoin, Namecoin, Peercoin in pairs with USD, EUR and RUB, taking advantage of all the advantages of ECN trading!

In the face of rapidly growing popularity Bitcoin and other cryptocurrencies, FXOpen has launched a new type of trading account - Crypto.

Bitcoin, Litecoin, Namecoin and Peercoin are promising and highly liquid instruments for speculative trading and investment, thanks to unprecedented price increases and high volatility.

FXOpen gives you the ability to trade directly cryptocurrencies Bitcoin, Litecoin, Namecoin and Peercoin in pairs with the US dollar, Euro and Russian ruble! Liquidity for FXOpen Crypto accounts is provided by the largest online exchanges, which is used to hedge client risks. The execution technology is based on the unique FXOpen ECN Aggregator system.

At the same time, you receive a market spread and low commissions, and the broker is interested in you trading successfully and increasing your trading volume. Scalping, hedging, locking and any types of advisors are allowed on Crypto accounts. Leverage is available 1:3.

• *To calculate all account indicators (including balance, profit, etc.) MetaTrader 4 uses a fractional unit mBTC. 1 mBTC = 0.001 BTC.
• *For all account indicators (including balance, profit, etc.) in MetaTrader 4, the unit is 1 LTC.
• **Commission for a full circle is 1% on the transaction volume in the base currency. When you open a transaction in the MetaTrader 4 terminal, you will immediately see the commission charged for the full circle (opening + closing a transaction).
  The minimum commission for a transaction is 0.01 units of the MT4 account currency.
  The size of the commission may be revised for large trading volumes.
• When opening an account through FXOpen partners (introducing broker, franchise or other form of partnership), the ECN commission may be different. For detailed information, contact the agent who provided you with the link to open an account.
• For transferring positions to the next trading day, SWAP is charged in the amount of 10% per annum from the value of the position. For transferring an open position from Wednesday to Thursday, SWAP will be charged triple.

Recently, even the most distant people from computer topics have heard about such a new phenomenon as cryptocurrency. Electronic money arose around 2005–2008, and only a small circle of IT specialists knew about it. It was they who made the first investments in this area, which in a short time helped them become wealthy people. Few, however, have heard stories about successful students who bought 1000–2000 bitcoins for fun and successfully forgot about them, and a few years later suddenly found themselves dollar millionaires.

Seeing the promise of cryptocurrency and the many advantages of its use, many people are eager to start using this money. There are also citizens who want to try themselves as an investor and try to make money with the rapidly changing exchange rate of a particular coin. There are many options for storing cryptocurrency, and we will look at the most interesting of them.

Which cryptocurrency to choose

There are currently about 1,000 different cryptocurrencies in the world. The most famous and popular is Bitcoin, and it is worth taking a closer look at. This digital currency began its existence around 2008 and then its value was very low. But the rapid development led to the fact that from penny prices, Bitcoin quickly rose to unprecedented heights and was able to reach a value of almost $20,000 per coin. Later there was a noticeable decline, but even the current $7,000 per unit of currency is very impressive.

In connection with all that has been said, the question of how to open an account in Bitcoin worries many citizens. For a beginner, this field of activity seems too confusing and complicated, but in reality everything is much simpler.

Why are Bitcoin wallets most frequently opened? There are several reasons:

• Bitcoins are one of the most expensive and promising cryptocurrencies;
• all other cryptocurrencies are equal in price to Bitcoin, and when working with most services on the Internet, you first have to purchase it.

Bitcoin accounts can often be used not only to store this currency, but also for others (for example, Litecoin, Dash, Ethereum, etc.). That is, such wallets usually specialize in several currencies at once.

Program or online account

All account options for storing and conducting transactions with cryptocurrency can be divided into two large categories:

1. Accounts that are created in special programs on computers and gadgets. The convenience here is that you do not need to depend too much on the Internet connection to control your money, there is no, even the slightest risk of losing savings, the funds are available to the owner at any desired time.
2. Accounts in special services, on exchanges. They are beneficial in that they allow you to quickly carry out any financial transactions - buying, selling, exchanging for other coins or currencies, paying for purchases, etc. Risks can be minimized if you use proven and reliable exchanges, since otherwise there is always the likelihood of one day being deceived.

Let's look at some examples of services from both points.

Applications

There are a large number of programs for PCs and smartphones in which you can create wallets for cryptocurrency. Each of them has its own characteristics and advantages. Let's look at the most popular of them.

Electrum

The considered applications and services on the Internet are only a small part of the options for creating your own cryptocurrency wallet. They are all approximately the same and there is simply no point in choosing here for a long time. The only rule is that before entrusting money to any resource, you must carefully read reviews and available information about it so as not to become a victim of scammers.

Cryptocurrency is a virtual currency that has no real analogue. It is developing very quickly today, and this is confirmed by the constant and rapid increase in its rate, the increase in the number of miners and the development of new equipment for mining.

Cryptocurrency will be beneficial as a means of payment in the future because there are no fees, no restrictions on the movement of funds and high anonymity is ensured.

Why do you need something related to Bitcoin?

In the modern world, it is impossible to imagine a company that does not have a bank account. Only an enterprise created for the purpose of owning any property and not carrying out any active activities, especially related to Bitcoin, can do without a bank account.

How to choose a bank for

We understand that Bitcoin is vital to any growing online business today. Bitcoin is becoming more widespread every day, moreover, some jurisdictions are beginning to open their borders to crypto business. So, for example, in the spring of 2014, some Cyprus schools began to accept Bitcoin as payment for tuition.

Opening an account for activities related to cryptocurrencies, be it its “mining” or organizing an “exchanger” resource ( cryptocurrency exchanges) - this process is somewhat complicated by the fact that legislation, like banking regulation, is not yet ready for such innovations in the financial sector of many jurisdictions. The specifics of the market are such that only some of them allow the opening of bank accounts for this type of activity.

To open a bank account for Bitcoin and other cryptocurrencies, contact the lawyers of Law&Trust International. Also, you can find out additional information in this area during a telephone conversation with our specialist, chat or personal conversation at the company’s office.

This situation is due to the inertia of legislation against the background of the progress of electronic means of communication.

Opening an account for a Bitcoin business is not that difficult if you seek help from qualified and experienced professionals. Without their help, it will be difficult, since not every bank can afford to open an account for this type of activity, and on top of that, you will have to explain to each bank employee separately what exactly you and your Company will receive money for and go through all the AML and KYC procedures . And even after this, the chances of opening an account for a Bitcoin project (exchange, mining, etc.) are extremely small.

Any company, and especially one that works with Bitcoin, needs to open a current account in a reliable bank. Law&Trust International company with more than 120 banks around the world. We will help you open a current account in a reliable bank for Vashoo Cryptobusiness.