The use and storage of any cryptocurrency requires the use of special cryptocurrency wallets. A wallet is a system of two keys: private and public. The public key provides access to the entire transaction history, and private access to cryptocurrency management. Therefore, the second key must remain secret and be available only to the owner
Types of cryptocurrency wallets
There are two main types of cryptocurrency wallets:
– cold, offline cryptocurrency wallets. They are hardware devices that store digital currency data. They allow limited access, but have increased security;
– Hot, online cryptocurrency wallets. They allow you to easily and quickly access digital currency from any place with Internet access.
The most popular cryptocurrency wallets at the moment are: Blockchain, Ledger, Bitcoin Core, QWallet. Of these, only Ledger is a “cold” wallet. This is a device similar to a flash drive, equipped with a specialized cryptographic chip that protects the posted data. Such a device is almost completely protected from illegal actions by intruders, but everyone can also steal it. Ledger provides a high degree of protection and an acceptable level of usability.
How to withdraw money and whether to pay taxes
At present, in none of the jurisdictions there are no clear and understandable rules for the use of cryptocurrency, including in matters of paying taxes on profits from cryptocurrency transactions. This is due to the fact that until the moment of withdrawal of funds to fiat it is almost impossible to evaluate the profit, because there is simply no such thing as an official cryptocurrency rate. Nevertheless, it is recommended to pay taxes on profits received from cryptocurrency, which will avoid questions from banks or tax authorities.
As for the withdrawal of funds, now there are several ways at once:
– personal sale directly from the seller to the buyer. Direct exchange without involving specialized intermediaries. You are transferring cryptocurrency, and fiat is being transferred to you.
– sale through WebMoney. The popular system has its own cryptocurrency exchange and wallet. Allows you to withdraw funds extremely quickly.
– withdrawal through special exchangers. Specialized organizations involved in the exchange of “currencies”. You transfer cryptocurrency, after which you receive money on your bank card.
– withdrawal of cryptocurrency through a specialized payment card. Some cryptocurrency exchanges offer their customers to create this kind of card on which money is withdrawn in the form of fiat. The method has a high commission.
The selection of the cryptocurrency wallet that is suitable for you and the withdrawal method is very individual. But regardless of your needs and requirements, you must approach the issue extremely seriously. There is a risk of running into laymen or even scammers. Choose proven wallets, QWallet – https://qwallet.co/ – are not scammers and are completely trustworthy. If you decide to choose a little-known wallet without history and reputation, there is a chance to run into scammers and lose everything. One of the important advantages of QWallet is the use of the revolutionary Hide transactions system 733 system that allows transferring cryptocurrencies within the system without being displayed on the blockchain, which significantly increases the level of anonymity and security.
Speaking about reviews about QWallet, it is worth noting the presence of false, fake reviews distributed by unscrupulous competitors. Pay attention to the credibility of the source. There is a reverse case: sites praising scammers, but not a word that speaks of worthy wallets like QWallet.