It is believed that data in blockchain cannot be edited
Sumit Ghosh, co-founder and CEO, Chingari, a Web3.0-based platform, shares his views on why cold wallets are necessary for keeping digital wallets safe with FE Blockchain
What are the three best practices that today’s youth should follow when it comes to digital assets?
To begin with, you should familiarize yourself with the technology behind digital assets. Make an informed decision after researching the pros and cons. Since crypto is not overtly regulated, one can find a lot of unsolicited advice on instant messaging apps and social media claiming to gain profits instantly. Do not fall prey to such advice.
How can Blockchain be used to keep digital assets safe? Which are the apps consumers can use?
Cryptocurrencies are stored in wallets, which are based on Blockchain technology. Data in blockchain cannot be edited, updated, or deleted, only new entries are allowed, so it’s temper free. Furthermore, it is publicly available, which makes all transitions transparent. The best way to store your crypto assets is to use cold wallets since they aren’t connected to the internet, so they are less vulnerable to online hacks. Ledger is an example of a cold wallet.
What are three tips you would like to give to people who dabble in crypto trading?
Research: Before deciding to buy or sell a cryptocurrency, it’s important to do your own due diligence and research the asset’s fundamentals, its technology, and its team behind it.
Set trading goals: Having a clear objective before entering a trade can help you stay disciplined and manage risk. Set realistic, attainable goals and be willing to accept losses when necessary. Do not invest the money which you cannot afford to lose, especially any chunk of your life savings.
Diversify your portfolio: Don’t put all your eggs in one basket. Diversify your investments and spread out your risk. Research different types of cryptocurrencies and decide which will be most suitable for your portfolio.
Lastly, do not lose your private keys as once you lose it, the keys cannot be recovered and your assets will disappear permanently.
Which, according to you, is the country leading in the space, and can the Indian start-up ecosystem pick up the best use cases?
The favorable atmosphere being given for the business has led to Dubai being a popular location for crypto players. Some of the most exciting cryptocurrency projects have begun to appear in Southeast Asian nations. In India projects like Chingari are disrupting the creator economy by rewarding the users in native crypto tokens for watching, liking videos on the app, making it the first social app to do so. Besides, there are numerous use cases of crypto currencies that can be explored in India, such as cross-border payments, loyalty programs, supply chain and many others.
What are the disadvantages of Blockchain?
The cost of using blockchain technology is expensive, limiting the participation of smaller firms. Scalability is also an issue which with time will get resolved but right now scalability is limited. Moreover, blockchain requires significant advancements before it can be used in everyday life.