Proof of Stake
vs
Proof of Work
Proof of Work relies on physical computing power and minors to sell their coins to ultimately foot the bill while Proof of Stake gives mining power based on the percentage of coins held by a miner and it relies on validators or virtual miners. Proof of Stake enables scalability, security and energy efficiency.
Storing Your Cryptocurrencies Online is a Huge Risk!
Spoofing Payment Information
Thieves exist digitally too. Users might be tricked into uploading their information on to phishing websites.
Hacking a Payment Gateway
Hackers are able to convince a hosting websites that they are a real domain users.
Loss of Wallet File
Can easily happen especially if a computer or electronic device crash.
Spoofing User’s Address
Money grabbing schemes through cryptocurrency fundraisers.
According to Hacker, since 2011, over $1.65 Billion worth of cryptocurrency has been stolen which amounts to $12.6 Billion when adjusted for inflation. Your wallet is HOT and open if it is connected to the internet and can be accessed any time. Anything stored on a mobile, online cloud storage and software is vulnerable to loss.
A COLD wallet is a hardware device that remains offline like a usb or even physical Bitcoins.