The Banking Executive Magazine - November 2022 Issue

How To Pick The Best Crypto Exchanges? TRADING CRYPTO CURRENCIES WITHOUT AN EXCHANGE Trading on an exchange is not for everyone. The technical know-how required can set a high bar. And some exchanges might follow the KYC (Know Your Client) protocol, which requires users to share per- sonal information and identification, similar to traditional exchanges. Other options for trading cryptocur- rencies include. • Investing apps: Many online in- vestment brokers offer apps that also enable users to buy and sell cryptocurrency. • Cash and payment apps: Apps like PayPal, Venmo, and Cash App allow users to buy crypto. • Peer to Peer P2P services: The challenge with some of the crypto trading options is that users may not be able to move their crypto assets off platform. Users con- cerned with privacy and anonymity can consider using P2P services that allow them to trade crypto directly. CRYPTO WALLET A crypto wallet is a piece of software or hardware that allows users to in- teract with different blockchains, and thus buy, sell, and store various types of crypto. There are two main parts to a crypto wallet: a private key and a public key. The private key is like the key to a safe deposit box. Anyone with ac- cess to the private key can take con- trol of all the crypto assets held in a given wallet. Users should not share their private key with anyone under any circumstances. The public key is derived from the private key and allows users to re- ceive funds. This key is safe to share. When someone wants to receive crypto, they use their wallet to gen- erate a public key and share it with the person who will be sending them coins. A single wallet can generate many public keys, also known as ad- dresses. A wallet address can come in the form of a QR code or a long string of randomly generated al- phanumeric characters. Technically, a crypto wallet does not contain actual coins. It provides a way to engage with a blockchain network and prove that users have ownership of specific digital assets. Using the private key, a wallet holder can initiate or “sign” a transaction, proving that the coins are theirs to send. While wallets are generally used for storing, receiving, and sending crypto, some have additional func- tionality as well. Wallets can also provide the ability to swap different tokens, buy and sell crypto, or inter- act with different decentralized ap- plications (dApps). the BANKING EXECUTIVE 14 ISSUE 167 NOVEMBER 2022