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Mnemonic Phrase And Passphrases 2021. Discover How To Keep Them Safe

In this article, you will learn what the mnemonic phrase and passphrase entail.

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Your crypto assets are targets to hackers, scammers, or any individual that wants to get rid of them from you. However, you can reduce the risk by getting informed about the levels of security surrounding crypto assets. One of which includes the Mnemonic Phrase and its counterpart, the Mnemonic Passphrase. These layers of security act as extra protection for your cryptocurrencies and other digital assets. In this article, you will learn what the mnemonic phrase and passphrase entail. In addition, you will also learn how to secure them to avoid future risks.

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WHAT ARE MNEMONIC PHRASE AND MNEMONIC PASSPHRASE? 

Although the two terms are interrelated, they do not mean the same thing. They are terms that perform different functions in the cryptocurrency world. Let’s take a look at what they individually mean.

WHAT IS A MNEMONIC PHRASE?

Mnemonic Phrases, Mnemonic seed, Mnemonic recovery, Seed key, Seed words, and Seed Phrases refer to the same thing. For the sake of this article, we shall use these words, “Mnemonic Phrase” and “Seed words” interchangeably.

In the literal sense, “Mnemonic” implies a pattern of words, letters, or ideas that aids the remembrance of something. Meanwhile, the term “phrase” refers to “a cluster of words.” However, the terms mean something entirely different in the crypto world. It simply refers to lists of words that store the information needed to recover your crypto assets. 

When you create a new wallet for your Bitcoin or altcoin, the wallet requires you to store specific 12, 18, or 24-words in a secure place. It could be on a piece of paper, engraved on a metallic substance, or stored anywhere you believe is safe. One of the purposes of these words is to serve as a backup. For instance, when your hardware wallet breaks down or becomes useless due to some reason, it retrieves your crypto assets for you. Besides, they are easy to memorize, store, and manage in a safe location. 

An example of a 12-word mnemonic phrase include

Frog study failure yacht hope many film times too baby grief shame

The seed words are like passwords to your crypto assets. Therefore, in situations where you damage your crypto wallet or lose it, you can use the mnemonic phrase (seed words) to recover your crypto assets. 

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WHAT IS A MNEMONIC PASSPHRASE?

If Mnemonic phrases secure your Bitcoin and other cryptocurrencies, what is the function of the passphrase? The answer is simple. To protect the mnemonic phrases and your funds! Why? Relying on a string of words to secure your funds is quite dangerous. Therefore, you need an extra layer of security that encrypts the mnemonic phrases. 

Mnemonic passphrases serve as a sort of two-factor authentication for your crypto wallets. When you create a new wallet, it gives you a mnemonic phrase that you store safely. However, some wallet requests for another password to encrypt your 12, 18, or 24-word mnemonic phrase. This password is what we refer to as a mnemonic passphrase. It is also known as seed extension, mnemonic extension, salt, or 13th/25th word.

One thing about this passphrase is that it is a one-word password that you can memorize with ease. The one-word password is the key that secures and unlocks your mnemonic phrase and funds. Therefore, if an individual has access to your mnemonic phrase, they can easily access your funds. However, if they do not have your mnemonic passphrase (one-word password), they can’t access your seed words and cryptocurrencies.

The mnemonic passphrase creates extra security such that “something you have” (mnemonic phrase) and “something you know” – are required to unlock your cryptocurrencies.

WARNING: Forgetting your passphrase can result in the loss of the funds in your wallets. Therefore, ensure that you do not overestimate your memory abilities especially when you don’t use the word often. Pin it down somewhere. The following materials give you suggestions for storing your seed phrases and mnemonic phrases.

  • PAPER AND PENCIL BACKUP

Mnemonic phrases and passphrases are natural languages embedded in the dictionary. Storing these words on papers is a better storage medium. Writing with a pencil is much better than using a pen to avoid smears. However, you should ensure that the papers are acid-free or the archival types. Also, store them in a dark place free of extreme heat and moisture.

  • METAL BACKUPS

Metallic backups provide a long-lasting solution to the storage of mnemonic phrases. When engraved or stamped to metals, they become more durable than paper. Besides, they are resistant to threat models such as fire, water, extreme temperature, and more. 

Other storage methods include memorizing, chiseling into a stone tablet, or other creative ideas.

CONCLUSION

Your mnemonic phrase and passphrase are keys to your crypto assets. Ensure that you get yours and store it in a private location.

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See The Best Places To Buy Bitcoin Cheap In 2021

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Bitcoin, the most popular cryptocurrency invented by Satoshi Nakamoto is of inherent value today. Nowadays, several exchanges list the crypto on their platforms for sale. However, cheaply buying Bitcoin is of advantage to a potential customer. So, what exchange platforms offer Bitcoin for sales in a cheap way? Let’s find out in this article. Before, let’s find out some criteria to consider when buying Bitcoin.

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CRITERIA TO CONSIDER WHEN BUYING BITCOIN

  • FEES 

Different exchanges charge a certain fee when selling Bitcoin. Besides, you have to find out if they accept your currency. For instance, sites that accept US Dollars will charge you a conversion fee if you transfer GBP. It is therefore important to consider the one suitable for your needs.

  • LIQUIDITY

Liquidity is a crucial factor when choosing an exchange. Liquidity refers to the amount of Bitcoin an exchange site can sell considering the changes in price movement. The liquidity of various exchange sites varies. To determine the liquidity of a good exchange platform, look out for their trading volume.

  • SPEED

Various exchanges perform Bitcoin transactions at different speed rates. Some could take five days. Meanwhile, others could take place at quicker rates.

  • ACCESSIBILITY

Various exchanges are available for use through different platforms. While some sites are mobile-based, some sites are web-based. Therefore, choose the one that offers you comfortability.

  • LOCATION

 The location of an exchange site determines if you can use it. For instance, some countries have regulations that prohibit some exchange sites from operating in their country. Also, trading fees apply to the geographical location. To choose the one that suits your needs, do your research.

5 SITES WHERE YOU CAN BUY THE CHEAPEST BITCOIN

  1. CEX.IO

CEX.IO is one of the top-leading exchange sites where you can get cheap Bitcoin. It all  depends on the method of payment you use in funding your account. That determines how cheap or costly your orders will be. For instance, if your method of payment is via bank transfer, you will pay zero fees for transactions involving GBP, EUR, and USD. Besides, the trading fee as well is minimal as it depends on your trading volume. Although the withdrawal fees can be quite costly, this shouldn’t bother investors that wish to “go long” with their investment. To get started, create an account here.

  1. BINANCE
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Binance is arguably one of the best exchange sites when buying Bitcoin. Viable for beginners and pro users, it allows users to buy several cryptocurrencies using different methods of payment – debit/credit cards, bank transfer, P2P, and more. Its trading fee of 0.1% is reliable and convenient for users. Even the withdrawal fee is one of the lowest amongst many exchanges. With this site, you have access to several trading features that can enhance your trading prospects. To get started with Binance, create an account here.

  1. PAXFUL

Paxful is a P2P exchange site that allows you to buy and sell various cryptocurrencies. With P2P, you have the advantage of getting different sellers that sell at various rates. The beauty of this is that you get to buy Bitcoin from the seller of your choice at the best rate. The transaction that occurs between you and the seller is safe as Paxful acts as an escrow between the parties. You can buy crypto through the following ways:

  • You see a trader of your choice
  • Start the tree and send your payment
  • Wait for the seller to send your crypto

One advantage of Paxful is that it offers zero fees to buy Bitcoin. Through various payment methods such as credit/debit cards, bank transfers, gift cards, and more, you get to buy at the customer’s rate. This rate depends on some factors such as verification status, parent methods, and more. 

  1. COINBASE

Coinbase is another crypto exchange that allows users to buy Bitcoin. As a popular exchange site, Coinbase offers a free wallet to its users. It accepts payments through different methods and charges a flat fee of $3.99 for its transaction. Also, it stores its digital currencies in an offline vault and safe deposit boxes to enhance security. Besides, there is a 48-hour withdrawal cancelation option to protect users from fraudulent activities.  

  1. eToro

eToro is another exchange site where you can get Bitcoin at a cheap price. It allows and trains users for trading. For instance, traders who sign up for eToro do get a virtual account of $100,000 to practice their skills before venturing into real trading. 

With eToro, you can buy Bitcoin via different methods of your charge. However, they charge a trading fee which is usually minimal. 

CONCLUSION

Cheaply buying Bitcoin gives you an advantage and strategically amasses more profits. By considering the criteria, you have access to different exchange sites of your choice. 

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See The Best Crypto Portfolio Trackers! Number 3 Will Surprise You

To get numerous benefits from your investments, having a portfolio tracker is a wise choice.

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When you invest in cryptocurrencies, you’d watch its movement. You want to make wise decisions that can influence your trade activities, calculate your profit or loss, determine when to buy and sell, and lots more. Likewise, if you are an investor, you will want to diversify your portfolio, get a massive return on invested cryptos, and be successful in the long-run. To get numerous benefits from your investments, having a portfolio tracker is a wise choice.  In this article, you will learn about the best six (6) crypto portfolio tracker of 2021. Before then, let’s take a look at what the portfolio tracker means and what to consider in a portfolio tracker.

WHAT IS CRYPTO PORTFOLIO TRACKER?

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A crypto portfolio tracker is a service that allows investors, users, or traders to monitor the price movement of their crypto assets. It gives the investors insights on how his invested crypto is performing in the market. Meaning, a crypto portfolio tracker allows you to keep track of the value of your coin as it changes. Also, it allows investors to analyze the market, trace and predict price movement, and purchase any interested coins. 

Different crypto portfolio trackers have varieties of features. No tracker consists of all varieties. For instance, some can allow you to exchange (buy & sell) cryptocurrencies but won’t feature the coins you need. Another can feature varieties of coins but won’t support tracking features. Therefore, it is important to consider each portfolio before using them. Do your research and choose the one that suits your needs before using it.

WHAT TO CONSIDER IN A CRYPTO PORTFOLIO TRACKER

  • SAFETY AND SECURITY: Since portfolio trackers can be linked to your exchange site or bank account, it is essential to select one with an extra layer of protection. 
  • OFFERS VARIETIES OF COINS: A crypto portfolio tracker that offers varieties of coins saves you stress, time, and money. 
  • EASY-TO-USE INTERFACE: A good portfolio tracker should be simple to operate and easy to understand. It should allow users to view all your assets with few clicks.

6 BEST CRYPTO PORTFOLIO TRACKER OF 2021

  1. CoinStats
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A well-established portfolio tracker that is available on mobile apps (Android and IOS), Mac app, web app, and Chrome extensions. It supports about 1,800 coins and has varieties of features that enhance its functionalities. With live prices from over 80 exchanges, you can connect to your wallets or exchange sites. Besides, its alert system has a differentiator that notifies you on the price, market cap, and volume of your crypto assets. Its profits and loss calculating segment has four different options for its users.

  • All time P/L that calculate the profit and loss of a particular coin by considering all of your transactions
  • Current Holdings that calculate the profit and loss off the holdings which you own
  • Last trade that calculates P/L of your last trade
  • 24 hours profits and loss that shows the balance within 24 hours.

Although the app is free, it has a Pro version of £27.99/year.

  1. BlockFolio
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A renowned portfolio tracker owned by the popular exchange site, FTX. Open to Android and IOS users, it supports about 207 exchanges. With an impressive charting feature, you can buy, sell, and trade cryptocurrencies. However, common trading pairs such as USDT are usually unavailable to users. Other key features include an alert system that notifies users of price movement, a news aggregator app that updates you of happenings, and more. 

  1. Crypto Pro
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Crypto Pro is a versatile app for many users. Available to Apple devices only, users can track portfolios, get price alerts, read news, and view information about precious metals. It consists of varieties of features such as Siri shortcuts, customizable widget, crypto calculator, ERC-20 import, and more. Although it is free to download, it costs $7.99 per month or $47.99 per year for premium features.

  1. Delta

Delta is another popular portfolio tracker for many users. Available to different operating systems (Windows, Mac, Linux) and mobile apps (IOS/Android) , it supports a large range of tokens. Besides, has several exchange supports and API connection functionality to about 13 exchanges. Its user interface is simple and easy to understand. However, the tracker has limited charting feature and notification options.

  1. CryptoCompare
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CryptoCompare is another portfolio tracker that offers portfolio management for its users. Available to Android and IOS users, it supports varieties of cryptocurrencies. Besides, it has many features that include risk analysis, advanced charting, and more. Its portfolio management is unique and available to desktop and mobile browsers. 

  1. Kubera
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Kubera is another portfolio tracker that manages all your financial accounts. It doesn’t deal with only crypto but includes other financial services such as banks, real estate, brokerages, and more. Its user interface is simple and easy-to-use. With Kubera, you can send your financial information to someone as it features an estate and beneficiary system. Also, it promotes privacy as it doesn’t track your data nor sell your information to 3rd parties. It costs $15 per month and $150 per year. You can create an account here.

CONCLUSION

Crypto Portfolios Truckers are suitable for every investor, trader, and user. Find the one that suits your needs and get started with it.

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Check Out The 10 Best Cryptocurrency Exchanges To Buy Any Altcoins In 2021

If you’re just starting out on your crypto journey there are some basic tools you will need to trade crypocurrencies and the most important ones are the cryptocurrency exchanges

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If you’re just starting out on your crypto journey there are some basic tools you will need to trade crypocurrencies and the most important ones are the cryptocurrency exchanges. The cryptocurrency exchanges are platforms where users can buy and sell cryptocurrencies on a centralised plaform.

These exchanges essentially perform the same functions which is to allow users to trade, but out of more than 200 exchanges, there are some that stand out in terms of efficiency, customer service and all-around good quality service provision and we’re going to list them below:

Binance

Okex

Huobi

Kucoin

Kraken

Coinbase

Mxc

Poloniex

Bittrex

Gemini

Cryptocurrency exchanges are gaining attention all over the world today. They are becoming a recognizable force in the financial market. The global cryptocurrency market size, trading volume, and several digital currencies have made these exchanges a platform that individuals cannot do without it. They have become popular mediums by which people can easily harness any form of cryptocurrency. However, purchasing altcoins on these exchanges can be difficult when you don’t know much about the exchanging platforms. Why? Several cryptocurrency exchanges have different policies that influence their transaction processes. These policies often influence the trading fees, payment methods, and the cost of a transaction. In this article, you will learn about the ten (10) best cryptocurrency exchanges to buying altcoin. 

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WHAT ARE CRYPTOCURRENCY EXCHANGES?

Cryptocurrency exchanges are websites that allow individuals to buy, sell, or trade other cryptocurrencies for other assets such as conventional fiat or other digital currencies. They accept payments through credit/debit card transactions, wire transfers, or other forms of payments. Most times, cryptocurrency exchanges act as the market maker where they take the bid-ask spread as transaction commission or as a matching platform where they charge fees. To use these exchanges, you will have to verify your ID and open an account with them. 

11 BEST CRYPTOCURRENCY EXCHANGES TO BUY ALTCOIN

Several cryptocurrency exchanges encourage the purchase of altcoins. Altcoins are other cryptocurrencies excluding Bitcoin. However, this article shall only examine ten (10) best exchange platforms where you can buy altcoins. 

COINBASE

Founded in 2012, Coinbase is one of the most widely used cryptocurrency exchanges in the world. Trusted by several investors and used by many customers globally, Coinbase makes it relatively easy to buy, store, use, and trade digital currencies. It offers an entry to its service by lowering the barriers that seem hard for first-time cryptocurrency investors. Also, it helps in the provision of insured custodial wallets for investors and traders. The wallets securing their investment and avoid risks. 

PROS

  • High liquidity
  • Simple user interface
  • Secured Investment

CONS

  • Limited Payment Method
  • Users don’t control wallet keys
  • High trading fees unless it’s Coinbase Pro

BINANCE

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Founded in 2017 with its focus on altcoin trading, Binance is arguably the most popular Cryptocurrency exchange today. Finance offers its coin, Binance coin (BNB) that can get you a decent discount when trading. Although the standard trading fee for transactions is 0.1%, you can get a lower trading fee if you use the Binance native cryptocurrency, BNB. With Binance, you have access to over 100 different trading pairs with their available altcoins. 

PROS

  • Access to more cryptocurrencies and trading pairs
  • Access to more advanced charts
  • Lower fees in comparison to other exchanges

CONS

  • Designed for more advanced users

MXC

Mxc is a registration-free cryptocurrency exchange platform that gives room for limitless crypto conversion. It provides reliable service at a great rate and conducts transactions within a short time. With over 170 cryptocurrencies, the exchange platform does not require account creation, stays honest with its customers, and charges no hidden or inflated fees. The transaction speed is relatively fast, and there is no limit for any crypto exchanges. 

PROS

  • More than 170 cryptocurrencies and tokens
  • It does not require account creation
  • Does not collect a hidden or inflated fee

CONS

  • Does not offer social signup

OKEX

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OKEX is a cryptocurrency exchange that allows the purchase, sales, and trading of cryptocurrencies worldwide. Operating in over 100 countries, OKEX provides cryptocurrency liquidity, offers market buying options, and supports different trading pairs to its users. With its sleek user interface, the platform allows users to check for cryptocurrency price, do market buys, and many more. Besides, it provides other valuable features like spot and margin trading, futures, perpetual swaps, and more.

PROS

  • Supports over 400 trading pairs
  • High liquidity
  • 24/7 Customer support
  • Low fees with decent incentives for market makers

CONS

  • Limited to some countries
  • Advanced features not recommended to beginners

KRAKEN

Founded in 2011, Kraken is the largest exchange platform with high euro volume and liquidity. It allows the trading of other altcoins and encourages transactions in USD, Euros, Canadian Dollar, Britain Pounds, and the Japanese Yen. Although limited to many countries, Kraken is arguably a brilliant choice for experienced traders. It offers a host of trading features like spot and margin trading and other advanced features. Currently, it doesn’t accept deposits via credit/debit card, PayPal, and more.

PROS

  • Low transaction fee
  • Decent exchange rate
  • Great User support

CONS

  • Limited Payment Methods

POLONIEX

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Poloniex allows traders and investors to buy, sell, exchange, or trade cryptocurrencies with ease. With its mobile app that is open to IOS and Android users, Poloniex allows users to trade. However, trading is not as smooth on other exchanges.

PROS

  • Low fee of 0.1% – 1% depending on transaction volume
  • Good user support
  • Available to IOS and Android Users

CONS

  • No leverage trading. 

BITTREX

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Bittrex is a veteran cryptocurrency platform that allows users to buy and trade cryptocurrencies. Available to many countries in a few languages, Bittrex enables users to make instant purchases of digital currencies by using their native currency. However, using Bittrex does not have an in-built wallet for some coins. Thus, it requires that you have your wallet for each cryptocurrency.

PROS

  • Available worldwide
  • Offers a wide range of payment methods
  • Fast transaction speed

CONS

  • High exchange rate
  • Average user support

Kucoin

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This exchange is actually a top favorite for a lot of people. Their unique features include spot and futures trading and each account comes with a FREE trading bot. And in a bull market, that bot pretty much prints green all day long. Like the rest of the top exchanges, Kucoin has an android and ios app for easy use. They also use a trading account and separate wallet feature that allows you to move funds from your Kucoin wallet to your trading account. It’s pretty slick. You can get started on Kucoin here

GEMINI

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Owned and operated by the Winklevoss twins, Gemini is one of the best cryptocurrency exchanges. Operating in a few countries, it is a brilliant choice for a diverse audience. It supports bank transfers and does not accept the use of cards, PayPal, and more. Although it doesn’t charge deposit and withdrawal fees, Gemini charges a brokerage fee of 0.5% for transactions. If your order is more than $200, you will have to pay a 1.99% fee for your orders.

PROS

  • High liquidity
  • High trading volume
  • Reputable organization

CONS

  • No margin trading
  • Average customer support

HUOBI GLOBAL

Subordinate to Huobi Group and operating in over 130 countries, Huobi Global provides a secure and reliable trading option for its millions of users. It has varieties of trading features that makes it ideal and reliable for their users to operate. As for the transaction fee, the trading fee for both market maker and taker is 0.2%. 

CONCLUSION

Several Cryptocurrency exchanges exist across the globe. Finding the one that suits your needs and demands should be your utmost priority.

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