After the acquisition, it is necessary to ensure reliable storage of the cryptocurrency, which guarantees protection against hacking and theft. Cryptocurrency is usually stored in crypto wallets. These are physical devices or online programs used to securely store private keys to cryptocurrencies. Some exchanges provide wallet services, thanks to which the storage of cryptocurrency funds is carried out directly by the platform itself, however, not all exchanges and brokers automatically provide such services.
There are also different wallet providers. There are two types of funds storage: “hot wallet” and “cold wallet”.
- A hot wallet is a cryptographic storage that uses online programs to protect private keys to assets.
- A cold wallet (also called a hardware wallet), unlike a hot wallet, uses offline electronic devices to securely store private keys.
As a rule, there is a fee for using cold wallets, while there is no fee for using hot wallets.
How to buy cryptocurrency.
What can be bought with cryptocurrency?
Initially, bitcoin was conceived as a means of daily transactions, allowing you to buy anything from a cup of coffee to a computer or even high-value items such as real estate. These plans have not yet been fully realized. Despite the growth in the number of institutions accepting cryptocurrencies, large transactions using cryptocurrencies are quite rare. However, cryptocurrencies can be used to buy various goods on e-commerce sites. Let’s give some examples.
Technology company and e-commerce websites
On the websites of individual companies selling technology products, you can pay in cryptocurrency. Examples are newegg.com, AT&T and Microsoft. E-commerce platform Overstock was one of the first sites to accept bitcoin. You can also use Bitcoin to pay for purchases on Shopify, Rakuten, and Home Depot.
Some luxury retailers accept cryptocurrency as a form of payment. For example, online luxury retailer Bitdials offers Rolex, Patek Philippe and other exclusive watches for Bitcoin.
Some auto dealers, from mass brand sellers to luxury dealers, also accept cryptocurrencies as payment.
In April 2021, the Swiss insurance company AXA announced that it would begin accepting bitcoin as a payment method for all insurance programs, with the exception of life insurance (due to regulatory issues). Premier Shield Insurance, which sells real estate and auto insurance policies in the US, also accepts bitcoin to pay insurance premiums.
To pay with crypto in a store that does not accept it directly, you can use a crypto debit card, such as BitPay in the US.