Send Crypto Safely
Address, anonymity and how to track your transaction
Jerome R | www.crypto2win.com
Read time: 7 min | Date: June 1, 2020
Blockchain technology have certainly transformed the economy.
Bitcoin was the first to become popular. Although there has been a huge influx and many new cryptocurrencies have been created, Bitcoin is still the leader.
Bitcoin still monetizes by being the first to enter the market. Maintaining a Name is a very difficult thing to do; Bitcoin has been successful over the years. And it has paid off in terms of value.
1. Start with Bitcoin
If you are new to the world of cryptocurrencies, you need to understand some prerequisites, for example how bitcoins are stored and then processed. To begin with, you need to have a basic idea of what you need and why you need it.
The first thing you should think about is storage. There are many ways to store your Bitcoins. The idea is to store a really secure mnemonic phrase that will allow you to retrieve your wallet whenever you want. The most used and convenient methods are the following:
The software wallet needs to be downloaded to your computer. The software allows you to store, retrieve or perform BTC transactions. One of the most reputable and secure on the market is : https://electrum.org/#home
The mnemonic cryptophrase can be stored on any flash drive. You can even print the Mnemonic on a piece of paper. However, paper is no longer a secure medium for storing data, because if someone finds it, they can access your wallet and steal your fund.
This is the best option:
Another way to take precautions in storage is a web site; you need to have an exchange or similar web site, from where you can maintain your bitcoin. One of our favorites is : https://www.kraken.com/ Don't forget to set up a two step authentication to increase security.
All these methods come with some advantages and limitations. Before deciding on one, you should know about the advantages and limitations of all the methods mentioned above.
3. Advantages and disadvantages
Storage in a software wallet
If you store your money on your computer using an original Bitcoin wallet, you'll have the freedom to access your money from anywhere as long as you have access to the internet and your laptop with you.
Cold Wallet Storage
Cold storage is also considered safe. There is very little chance that someone can hack into your flash drive. However, you may have trouble recovering data if the drive becomes corrupted or broken; you'll be at risk of losing all your Bitcoin. Or, you can use a “paper wallet”. When you use paper for storage, you'll eliminate the chance of hacking. However, physically maintaining all your currency data is a very difficult task. If you only rely on paper storage and lose it, you may lose all your money. So my advice is to keep several copy of your mnemonic in different places and on dufferent support.
I consider this option to be the best, although it is not free. Buying a hardware portfolio cost about $75. The best Hardware wallet on the market is the Ledger Nano S.
Use Exchange to store your coins
The cryptomoney market is still in its infancy; there are very few credible names in the exchange industry that can really be trusted. The companies that are on the scene offer partial security. Although they talk about top-notch security, they still do not offer real protection to the holders. It is very risky to keep your bitcoins on exchanges when they are not offering adequate security against possible theft. Given the emergence of new forms of hacking, this is not a wise decision in my opinion. Once companies start offering one hundred percent protection against potential theft, the game will be different then.
4. Send Bitcoin safely
To send and receive Bitcoins, you need to have an address, that is, the location from which you want to send your bitcoin. The address is usually represented by a very long series of letters and numbers often case sensitive.
What is a Bitcoin address?
The Bitcoin address is an inscription that indicates the source and destination of the Bitcoin payment. You can compare the Bitcoin address concept to general banking concepts. Just like you need to have the banking details of a friend if you want to send him money, the same concept applies to BTC transactions as well. To send bitcoins to a friend, you need to have their bitcoin address. The transaction will take place between the two points: the source and the destination.
How to guarantee anonymity?
Most blockchain experts suggest, if you wish to remain anonymous, creating a new address each time you do business with some. This is a personal security measure that can keep you protected from many potential threats. This makes it harder for hackers to get a sense of the flow when creating a new address each time.
How do you generate a bitcoin address?
Start by choosing a method to store your coins. When this is done, simply create a wallet and it will automatically generate your public address. Never forget this simple rule: you can share your public address as many times as you want. But NEVER share your private key and mnemonic phrase, NEVER.
What does a Bitcoin address look like?
The length of the Bitcoin address varies from 26 to 35 characters. It's a mixture of alphabetic and numeric characters that will start with 1′, 3′, or bc1′.
These are the bitcoin formats. Currently, only three bitcoin formats are functional, but they may increase in the future. The formats have been classified as follows:
- P2KPH(The address of this format starts with the number 1′) case sensitive
- P2SH (The address of this format starts with the number 3′) case sensitive
- Bech32 (The address of this format starts with =bc1″) insensitive case
The appearance of bitcoin is exciting, but sometimes it can be a little confusing. Therefore, it is very important for all those who have recently been introduced to this form of currency to pay sufficient attention to every detail to get started. Once you understand it, everything starts to become easier. It has the potential to be a global currency in the future.
5. Tracking your transaction
You can always check the status and track your transaction using the bitcoin browser. There are many open source websites and tools from which you can track and get all the details of the transaction including the number of confirmations. All you need to do is put the transaction hash in the search bar of the bitcoin browser. Example: https://www.blockchain.com/explorer
6. Factors affecting an operation
The period of time needed to send the bitcoin depends on many variables. The two factors that stand out are:
- Network load
- The transaction fee
The network load is a very simple mechanism; it is reduced when too many transactions take place at the same time. When the load is greater, the computing power of the network is reduced. In other words, the load and the computing power have an inverse relationship to each other. When the computing power decreases, the waiting time increases. When the load is too high, and if a low price per transaction is set, you may have to wait 7 to 8 days for a bitcoin transaction to be completed. Under normal circumstances, when the load is moderate, the transaction is processed in an average of one hour.
The transaction fee you agree to pay is directly related to the transaction time. The higher the fee you pay for the transaction, the higher its position in the priority line. To make it simple, the more you pay for the fee, the sooner your transaction will be processed. But, keep in mind that it is possible to pay 0 fee; YES! You can also process your transaction without paying. For a free transaction to be processed, you may need to wait longer. The time here is the price. It is important to note that some free transactions cannot be processed online. Personally I never sent a free transaction, I prefer to set a low fee to ensure that the transaction will be carried out safely.