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  • Offline storage, in wallets that are not connected to a network, is often seen as the superior solution
  • Online Storage, a solution that allows you to access your cryptocurrencies across a number of devices, through a computer, a smartphone or even a web browser extension.

The crypto conundrum, where should you store your Bitcoin? Online, offline or perhaps somewhere between the two? With so many storage options available, it’s often hard to decide what to do. Ultimately, crypto storage is the responsibility of the investor and thus, your cryptocurrencies should be looked after as if they are real money, because, well… they are real money.

Offline Storage

Offline storage, in wallets that are not connected to a network, is often seen as the superior solution. Your assets can be stored on a USB type device that is cold, it’s offline and thus can only be accessed by the person who has the device. This can also be protected with a password, two-factor authentication and all of the other security parameters, meaning that in reality, this is the safest way to secure your crypto, it’s essentially unhackable.

The problem with this is that if you lose the device (the wallet) or it gets stolen, you lose the assets. Much like if you lose your cash wallet and it’s full of money, that money is lost and impossible to retrieve, therefore when you have an offline wallet, you need to make sure you keep it safe. Some people will opt to store their wallets in a bank vault or a safe, but then you are leaving its destiny in the hands of the bank, isn’t that the reason Bitcoin was created in the first place, to prevent this?

Online Storage

So, this brings us to online storage, a solution that allows you to access your cryptocurrencies across a number of devices, through a computer, a smartphone or even a web browser extension. Some online storage also allows you to store your cryptocurrency with an exchange, meaning you simply just need to log into an account to access it. Forgotten your password or private key? No problem.

The downside to this of course is that your assets are stored on a network which is hosted by an external entity. They are partly responsible for the safekeeping of your assets. By being online, if your storage provider goes bust, or shuts down, what happens to your Bitcoin? Moreover, by being within a network, your assets are exposed to a risk of hacks and theft, it’s something we have seen many times before and is something that we can only expect to see again.

The Solution

Well, it’s up to you. How you store your crypto is your decision and your decision alone. We would always recommend staying offline, though as you can see, online solutions do have some intrinsic benefits. As long as you practice good internet security and do your best to stay safe online, your assets should remain safe. Minimise risk, trade carefully and treat your cryptocurrency like real money – that’s our best advice.

Adrian Barkley , 2019-12-03 23:30:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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