What’s AML and what’s KYC?
Anti-Money Laundering (AML) and Know Your Customer (KYC) are a group of laws in Malta that require cryptocurrencies sellers to know who their customers are. Certain sellers will ask for your identification to comply with these laws. Other countries around the world may have similar laws and requirements.
What is Blockchain?
The Blockchain is the technology behind Bitcoins. It’s what makes it work. Bitcoin transactions are sent to the blockchain so that miners can put them into the blocks that they mine. Once a block containing your transaction is mined it has been added to the blockchain and your transaction receives one confirmation.
What is a Wallet?
The place where you store your cryptocurrency. This can be very confusing to newbies, but a wallet is basically just a cryptocurrency address. A wallet can exist on a service such as NexInter, in an app on your mobile phone or computer, or even on a piece of paper! As it is only a series of numbers and letters it does not matter where it’s stored. It’s completely fine to use your NexInter account as your wallet when you’re still new. But if you will start to accumulate larger amounts of cryptocurrency you may decide to use different ways to store them.
What’s a cold wallet/cold storage?
In layman’s terms, the cold wallet is a wallet that is not connected to the internet (the opposite of a hot wallet). We advise our customers to store their funds into a cold wallet if they are not planning to trade on a high frequency. By storing your cryptocurrencies in a cold wallet you cannot get hacked.
Keep in mind though, that saving your funds in a cold wallet does not mean that your funds are automatically bulletproof safe since you might lose access to your funds due to physical damage, malfunction or disappearance of the storage medium.
What’s a hot wallet?
The opposite of a cold wallet/cold storage. A hot wallet is located on a computer connected to the internet. It’s from here where your transactions are sent. We suggest you to keep only a very small amount of cryptocurrency on it in order to protect yourselves from hackers.
What are confirmations?
For a cryptocurrency transaction to be completed it needs to be confirmed. A confirmation happens when a transaction has been added to a block that cryptocurrency miners successfully mine. The number of confirmations required for a transaction to be ‘’official’’ differs from exchange to exchange. (e.g. On Nexinter, for a BitCoin transaction to be confirmed we require six confirmations)
What is mining?
This is what cryptocurrency ‘’Miners’’ do in order to confirm transactions and add them to the blockchain. When a cryptocurrency miner mines, he uses computing power in order to do difficult calculations which answers are easily proven to be correct. This way, when a miner completes a calculation anyone can easily see that the miner has actually done work. What miners get in return from mining are new Bitcoins and transaction fees.
What is a Multisig wallet?
Multisig or Multisignature wallets require two or more signature for a transaction to be executed. This type of wallets provide more security that single-signature wallets. Even though the use of multiple signatures from authorized parties to execute transaction is a practice that has been around for years, it often refers today to its application within cryptocurrency transactions.
What is a Satoshi?
A Satoshi is the smallest amount of Bitcoin that can be sent, or 0.00000001 BTC.
What is a TxID?
When you withdraw cryptocurrencies from NexInter to an external address the transaction details such as the amount sent, sending/receiving address and also the date of transfer are stored on the blockchain. The aforementioned information regarding the transfer of funds can be found through the TxID which is generated for every individual transaction, therefore, the information is public.
Additionaly, TxIDs are safe to share since no personal information is sent from NexInter to the blockchain.