Just like millions of others you might have found cryptocurrencies and their features fascinating. You might be exploring a lot about how the cryptocurrencies work and how to trade them for making more profit. Hence crypto trading involves the use of a crypto wallet. Now you might be wondering what it is and how it works. So, continue reading and you will get to know everything about cryptocurrency wallets and their importance in crypto trading.
What is a crypto wallet?
A crypto wallet is a digital wallet. It is used to hold, secure, send, and receive crypto assets like Ether, Bitcoin, etc. This wallet is designed to protect your crypto assets against all kinds of threats. Most of the users get crypto wallets when they buy cryptocurrencies. Some also prefer to use third-party crypto wallets in which they can store different types’ of crypto assets at the same time.
The new cryptocurrency exchanges are providing their clients with new crypto wallets. These wallets are safer and more feature-rich in comparison to earlier versions of crypto wallets. You can use them as a smartphone app or online app to manage your crypto assets, trade these assets, and make transactions. Just like a normal wallet, crypto wallets offer a safe space for holding your digital money. That’s why every person, who owns cryptocurrencies, need a crypto wallet to use that currency.
Why crypto wallets are pretty essential?
You might not be able to trade your crypto assets if you do not own a crypto wallet. Whenever an individual invests in crypto assets, he gets a wallet associated with the purchased crypto asset. That’s where cryptocurrencies can be stored because it has no physical existence. Crypto wallets are pretty essential because you cannot trade your crypto coins without having a crypto wallet. Therefore, each crypto exchange provides a unique wallet to allow its members to trade their assets safely.
The centralized exchanges do not provide access to the private key of crypto wallets. The decentralized exchanges are offering a complete control of the wallet and that’s why new traders are more interested in crypto wallets built using the blockchain technology.
There are a variety of factors to consider before investing in any market, especially cryptocurrency and the blockchain. One thing which may surprise new investors, especially those who came in last year during the bullish market trends, is just how much influence political decision making can have over the entire crypto industry. Sure, this can happen in any industry, with crypto being still in its infancy though, decisions are still being made that can have a huge domino impact within the sector. This is not always a bad thing.
Undoubtedly, the next couple of years are key in many countries. When getting started in crypto, the political policies within your country were likely not on the top of the agenda. Now however, with the surge created by last years bullish trends, many nations are taking a close look at the sector. In Korea and China for example, it is illegal to run an ICO with the threat of other legislation incoming. It is also almost impossible for foreign residents in Korea to trade on domestic exchanges.
These are important issues which can really swing the market in one direction or another depending on the stance the respective governments take.
The two sides if the Coin
As we have discussed, the environments for crypto and the blockchain in some countries is less than friendly. That rarely dampens the spirits of the community though. You will find that Korea in particular is still one of the major markets and a hotbed of activity in the space.
That said, there are much more liberal nations out there who have welcomed the blockchain innovations with open arms. Malta and Estonia would be considered to such nations. They have spotted the emerging eveolution and become early adopters in helping to get ICOs and new projects started.
As the wave of progress continues, the majority of the community certainly hope that more countries can provide this type of support which would surely boost crypto spirits and markets as well as being highly beneficial to domestic economies.
Given the current competitive climate when it comes to launching an ICO coupled with the bearish trends of the crypto market, projects who decide to continue with their launch must be perfectly on point to make investors see them as a worthwhile investment. Nowhere is this more important than in the case of a Whitepaper.
This will be the first piece of information that any investor worth their salt will study deeply. Therefore, the importance of a quality whitepaper cannot be over stated. Here are a few more reasons why you should write one more draft if you are planning an ICO:
The first thing which will raise red flags to potential investors is a poorly written whitepaper. This could be in terms of grammar and spelling, the information you have included (or failed to include), or even the design and layout of the paper itself. These are all key drivers to deciding how your paper is received, and as history and human nature tell us, it is very difficult to recover from a poor first impression.
Regulatory matters are having a more and more profound impact on the behavior of new projects. These will only continue to get sharper and more focused on the entire market. That is why you need to be proactive in your approach, staying completely compliant with all current regulation, and taking every step necessary to preemptively stay one step ahead of future regulations.
The Whitepaper of any project will be a core point of reference as you move forward in the future. This is true as much for founders as it is investors. It should provide you with clear and detailed guidance on where you’re positioned and what your goals are. A good Whitepaper can be referred to, and learned from in times of need for any company or investor. It will also keep you mindful of the projects intended direction and act to redirect you if you are deviating from that course.
A quality whitepaper should be a collaborative effort, though you can likely find some professional writers from an agency or independent platform such as Upwork to complete your Whitepaper.