The Handling of Cryptocurrencies

Abstract

Cryptocurrencies can be addressed as a digital version of cash. As the physical cash (banknotes and coins), even cryptocurrencies require to be handled. The risk of loss, theft, robberies – that typically relates to the use of cash – exist even with cryptocurrencies. The chapter analyzes how the handling of cryptocurrencies is possible, introducing the concept of e-Wallet, and the functions of “public keys” and “private keys”, necessary to transfer coins between counterparts (e.g., to make or receive a payment, to buy or sell cryptocurrencies). The analysis includes the differences between “hot wallets” and “cold wallets”. In the second part, the focus is on trading platforms (exchanges) – as Binace, Coinbase, Kraken, and Gemini – and the expendability of cryptocurrencies. The reading should provide the big picture about how to buy, sell, store, and transfer cryptocurrencies.