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By Sunny River, posted on November 29, 2018

General tips & advice for storing, sending & receiving cryptocurrencies.

Here are some tips to avoid losing your cryptocurrencies when you send and receive them with a few of the best practices for storing the coins as well.

Moving Cryptocurrency

Sending cryptocurrencies from one wallet to another is a pretty straightforward process, and the basic steps are often the same no matter what cryptocurrency or wallet you use.

The two best methods for non-technical people sending and receiving     cryptocurrency are copy/paste the wallet address and scanning the QR codes.

Copy/paste is pretty safe, just make sure you confirm the first and last 4 letters are correct before hitting “send”. The QR code requires a simple and easy scan and confirm your transaction.


Send a test amount to new addresses: Before you send a lot of crypto, try sending a little bit as a test to make sure everything is working.


Never type the address. Human error is way too easy, and the consequences suck.

Wallets

Wallets are like your crypto bank accounts, and different wallets store different tokens.

A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.

There are several types of wallets that provide different ways to store and access your digital currency. Wallets can basically be broken down into three main categories – software, hardware, and paper.

  • Desktop: wallets are downloaded and installed on a computer. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.

  • Mobile: wallets run on an app on your phone and are useful because they can be used anywhere, anytime. Mobile apps are beginning to deliver bank like security.

  • Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers some of the highest  security we have in cryptos. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. 

  • Paper: Just like it sounds, this is a piece of paper on which the user’s private keys are printed. In terms of computer hacking, it is immune. The paper should be stored somewhere safe, for example a safe deposit box, since it is basically cash and if you lose access to the numbers you lose access to your crypto.

  • Your Brain: Folks with great memories can cross borders with billions of dollars, to the chagrin of customs and border patrol agents around the world. It’s not the most practical way to store Bitcoin, but it’s certainly the most personal.

Common mistakes to avoid

Sending tokens to the wrong wallet address

This is super important to remember! Once you send your coins to an incorrect address, it is unrecoverable. Always ensure you are double checking the send/receive address.

Sending the wrong amount of Bitcoin

With Bitcoin being divisible up to 100 millionth of a unit, it’s hard to keep track of how much money you’re actually sending. Use a website like http://preev.com/ to double check the value of the BTC you are sending/receiving.

Use 2FA

The basic idea behind 2FA is finding another way to confirm the user’s identity beyond a password. By now 2FA is everywhere. If you’ve ever entered a 6-digit PIN that a company texted or emailed you, then you’ve used two-factor authentication.

The best types of 2FA make it much more difficult for attackers to get access to your account. However, any type of 2FA adds another layer of security beyond your password. So, if a site offers 2FA of any kind, you should enable it. Taking account security beyond the realm of passwords is why 2FA is so important and growing so quickly.

Keep Your Seed Words/Private Keys safe

If you lose access to your phone or email, then you won’t be able to receive 2FA authentication codes. So it’s always important that you keep copies of your private keys and seed words somewhere safe. Then you’ll be able to restore access when you get a new phone.

Recovery seeds are pretty much the most important aspect of maintaining the safety of your cryptocurrencies. A recovery seed is your best friend when you lose your paper, hardware, or mobile wallet, as it’s the only way you can recover your funds and wallet. A lot of people skip writing down their recovery seed code when setting up a wallet because they just don’t realize. However, to prevent total bitcoin and cryptocurrency loss, it’s crucial to record your recovery seed and your Private Keys somewhere safe. It is highly recommended you back up your crypto wallets recovery phrase if you have not done so already.

Thanks for reading!