OK.
Now let's talk about digital wallets in terms of definition a digital wallet is simply an application
that stores or holds onto your cryptocurrency it can be a web based desktop or mobile app which is created
to help you store your private and public keys or in other words your deposit addresses.
And it also interacts with various block chains to help you send and receive crypto currencies and monitor
your balance.
Here's an example of a deposit address.
It's just like an e-mail address which you use for receiving emails when you want to receive digital
currency from someone you just need to give them your deposit address.
For example this is your bitcoin deposit address.
If someone wants to send you 0.5 Bitcoin or BTC they just need to open their wallet and create a withdrawal
or sending money request into your deposit address and the amount of money they want to send in this
case 0.5 BTC as you can see here after they click continue.
The point five BTC will be sent to the block chain where the validators or miners will start verifying
and validating the transaction after two to three confirmations from the validators.
The 0.5 BTC will appear in your account and the transaction will be marked as confirmed or completed.
OK here are the most important things that you'll need to take into account.
The first thing is if you want to receive a particular cryptocurrency you must provide that cryptocurrency
deposit address.
For example if you want to receive bitcoin you must use your bitcoin deposit address.
If you send different currencies say a theory M or ripple to your bitcoin address your money will be
permanently lost and there's no way you can get your money back.
The second thing is that you must always double check your deposit address a small mistake and lead
to a permanent loss of your money.
So you must be extremely careful when sending and receiving cryptocurrency is
next.
Make sure you always secure your wallet account using two factor authentication.
Most wallet providers provide this feature enabling this feature will provide your account an extra
layer of security.
How this works is simple when you try to log into your account or when you try to send your cryptocurrency.
It requires that an outside source verify the requests are genuine and not from a malicious source.
Typically this happens by sending you a text on your smartphone or by requiring you to input an authentication
code generated by a program elsewhere.
So even if someone else knows your password they cannot log in to your account and steal your money
unless they have the authentication code.
My favorite app for two factor authentication is all the it allows you to create a free account which
you can use to store all of your authentication codes.
And the best thing is it can be seen across multiple devices.
So even if you lose your phone you can still log in to your account and get authentication codes to
access your wallet.
And the next thing you want to do is to install an anti-virus software on your computer and your phone
to protect your account from being hacked.
You can use Kaspersky Norton bit defender or other anti-virus software.
There are many viruses a malwares that are created to automatically change the victim's deposit address
with intent to steal their money.
So make sure that all of your devices are protected and always double check your deposit address and
you should also avoid using your friends or public devices to log into your account.
OK.
Here are the best wallets you can use.
Bitcoin dot com is the official wallet for Bitcoin.
It offers support for both Bitcoin cash DCH and Bitcoin core BTC.
You can easily sign up for an account at wallet dot Bitcoin dot com block chain dot info is my favorite
wallet as it offers support for not only Bitcoins but also a theory I'm more and more crypto currencies
will be added in the future.
You can register an account a block chain dot info
and the third wallet is my either wallet which supports a theory.
And almost all crypto coins and tokens that are built on the at theory and block chain you can get a
free wallet at my ether wall at dotcom OK.
Your job now is to create your wallet accounts with them and then secure your accounts with two factor
authentication and don't forget to protect your devices with some reliable anti-virus software in the
next lecture.
I'll talk about how to open your trading accounts and give you a list of reliable and popular exchanges
that you can use to trade crypto currencies.