The utility of cryptocurrency payments
- Lucidity: As all the transactions are public, it comes with the privilege of checking on the cryptocurrency transaction using any internet device and has, therefore, made the process very lucid.
- Swift transactions: Another important aspect of cryptocurrency payment is the lightning speed of the transactions. They take place immediately after the permission is granted and cost almost nothing. This stands as a primary reason why companies today are ditching stereotypical payment methods and resorting to cryptocurrency solutions.
- Secrecy: Even though cryptocurrency transactions are public and transparent, the anonymity of the transacting body is maintained and all the information remains safe. The government might not be a great supporter of the fact that a lot of open-source performers hold this privacy offered in high regards.
Such speed and ease have made cryptocurrency payments the most favorable method for most upcoming startups as it checks the cost works smoothly.
Cryptocurrency payments in action
The process of payment will start off after registering at a cryptocurrency exchange. Following the registration, a wallet is created from where the coins are sent or are deposited in. One can also store the coins offline by using a computer-based wallet.The wallet will provide its user with two keys; a private key and a public key. The private key will enable the access to the wallet and performs in a manner similar to log in or password security; while the public key allows others to send the individual coins, and is subject to changes after each transaction. Therefore if one wants someone to send them coins, they are only liable to share their public key, taking help of which the sender can easily dispatch the cryptocurrency payment to the receiver's wallet.
Likewise, if you want to send coins to someone else, all you will need is the public key of the receiver. The public cryptocurrency codes are shared by many business codes like QR codes. Once the QR code is scanned by the device, the account is precisely acknowledged by the software that will direct a payment request or the payment itself. Therefore, the time required for the procedure is incredibly little making it hassle-free.
Cryptocurrency payments security concerns
Keeping aside the convenience of cryptocurrency payments, the process can pose a threat to security concerns. The registration is conducted for the online exchange of coins in the wallet. Procuring coins requires one to provide his bank or credit card details. Even though this information is secured secretly, it might seem transparent on a hacker’s part to lay open all the inputs. Such incidents have taken place before and aren’t uncommon in the world of cryptocurrency.Also, the latest technologies have made it possible to trace the transactions through the P2P network, although the essential part of this is balancing enough number of nodes. This is thereby reason enough to secure all the information through VPN while conducting an important transaction. Another drawback here is that there is no scope for a refund once the transaction has been successfully completed.
Ways to improve cryptocurrency payment security
Offline storage of Private Key
The private key provided to you after the creation of the cryptocurrency wallet will grant your access to it. It has been duly observed that during many times, the private key of the user is stored online or within the network that hosts the wallet. Such scenarios can lead to the loss of information if a hacker attacks the network and access to the private key means direct access to the wallet.The best way to prevent this mishap is to enable offline storage for the private key, and in this case, the recommended is a choice of storing it in a device that does not have internet access. Keeping the key away from the internet will automatically separate it from the hands of the intruder.
Creation and offline storage of a private key needs some effort. The cryptocurrency transaction will need you to connect a USB to the computer devoid of internet service and verified every single time it is performed. This might be a little time-taking but is the most reliable when it comes to the cryptocurrency transactions.
Cold and Hot Wallets
A hot wallet in a cryptocurrency transaction is the one which is either online or connected to an exchange. Because of its online status, it is more welcoming to the attacks of the hackers. Compared to a hot wallet, a cold wallet exist offline and is capable of providing better security to the former type.The best way to ensure the Cryptocurrency transaction is to use a combination of the hot and cold wallets. The idea is to store the excess available coins in the cold wallet so that they can be kept away from hacking threats and keeping a limited number of coins in the hot wallet which is to be used for a regular use, so that if in any case the hot wallet is preyed upon, the user will not face grave loss.
VPNs
VPNs have been widely used by all sectors of the society; the government, multinational companies and at the same time individuals to keep safe their cyber information. Apart from rerouting the traffic, the VPNs, at the same time, encrypts the data traveling between the two nodes of the user’s device and the opposite end, which can be a website or server. Top-rated VPN applications are being used by activists, journalists, hackers and other groups of privacy-sensitive mass.Along with the other two methods, VPN is equally effective when it comes to cryptocurrency transaction security. The traffic of the communication is justly kept track of and the data that is being used during the sending and receiving of payments. There is a huge array of VPNs available and at an impressive price range making it accessible for every man.
Bottom line
Like every other process in the world, cryptocurrency transactions come with their own sets of pros nd cons. But, the distinguishing factor, in this case, is the easy availability of security methods like those of hot and cold wallets, VPNs, and offline private key. Taking a course to any of the above-mentioned methods will guarantee the security of your transaction to a great extent.
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Mohammad
7/11/2019
Bitcoin
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