Cryptocurrency With and Without the Private Key

Hello, guys today in this post we will discuss the significance and reliability of private key.

Since already we discussed this topic in past, where we told how much time can take for a supercomputer to decode the private key, you can see that post by click here.

Crypto without the private key

There are numerous of coins in this market available right now that can buy and sell easily and also we can store in a reliable wallet but still, there are numerous questions revolves in our mind that why these coins are different from another high profile coins like BTC, Eth, dogecoin, digibyte coin, etc.

Actually, to create a coin, a person needed to create his own software and own algorithm to run and perfectly work a coin. And that makes the coin technology different from other coins.

But time to time revolution in the technology results in new options to create coin without any coding skill and knowledge in just a few steps.

In the last few years, many coins entered this field with this technology where people can create their own token ( asset or coin ) and that can be used as another real crypto coin. By copying this concept many other old coins that were working on the traditional technology algorithm switched to this new algorithm and that resulted in the ease to create new coins easily by the newcomers in this field, so we can see numbers of coins in this field without a private key.

So now, here a question arises that “any coin without a private key is safe or not?”

Actually, a coin that is created under another coin technology is just a part of a software tool, where we created a number with a particular name, let call it a named token, so everything is safe until the base technology and algorithm software of the coin remain safe. The created token can’t be mined like BTC, ETH, DOGE, or other blockchain coins. The maximum supply is set initially at the time of creating the token and the coins are minted or unlocked with a planned schedule.

So in actual reality, a coin without a private key is just numbers where we have trust that its value will increase, and in that condition, we can make a profit, that’s it!

Should we buy such coins?

In actual, the answer to this question depends upon your own strategy that what you think about the future of that coin ( actually a token ) and also what is the position and what is the level of that coin in this field of Crypto going on.

But if you are looking to buy and hold for the long term then we will not suggest this because in long term the market of such coin not goes high because the owner of the coin doesn’t give better efforts for the coin’s future.

And also we have to put these coins at websites or at those wallets under which these coins made, no separate wallet or directly as a separate coin.

One more disadvantage is that if the base coin blockchain is hacked or altered the token is also hacked. If the base coin blockchain is stopped by any reason that the transaction of the token is also stopped.

Coins with Private key

Coins with the private key is a much better, safer, and convenient way to save your coins for the long term.

If you are thinking to buy a coin and hold it for the long term of even many years then it is a better option for you to choose only those coins which are available with a private key option.

Why choose coins with a Private key

Since there are many technical reasons why we should go with those coins which have the facility of a private key. But the mains reasons that should be known by us are the following.

•  Coins can be stored for an unlimited time of years without any disturbance of online data risk.
• There is no need for us to visit any website or look email or mobile number or even any password to access in the future.
• We can store offline without giving hints or clues to others.
• If you have the private key of your coin then you are the real owner of your asset otherwise your money is on websites or company hand.

Probably this is the main reason to have a coin with a private-key facility because with this we have just need to get a print of our private key on paper and put it at a safe place.

Alternatively, we can make an anonymous Google drive account and can save there, but never disclose this email to anyone to remain safe to access your private key.

•  We can use it in hardware wallet to store with full of safety  .

Be aware of safety

No doubt that holding the coin with the private key offline and in a hardware wallet is a better way of safety and privacy of our fund but still there are risks involved if you will do mistakes. So avoid these mistakes:

•  Never tell anyone that you have an offline backup of your funds or have private key printed copy paper, so no chance for any person even to think to steal your fund.
• Never use a used hardware wallet, or don’t purchase hardware wallets from third-party websites, buy it from the official website no matter if you are going to spend a few 10-20$ more, no discount, But you will remain safe.
• Don’t use your hardware wallet in another person’s pc or laptop.
• Always keep a premium antivirus protection software in your pc otherwise a virus can steal data of hardware wallet ( not happened yet but still chances are in the future ) and that results in the loss of all of your funds.
• Never put your private key at online platforms which are publicly open for anyone to use.

Summary: Use those coins for long term investment which have the option of private key support otherwise you should not go with those coins which don’t have this option.

And always keep your private key in offline and in safe mode and never expose to anyone that you have something like in offline.