A Hunt for the Best Cryptocurrency Wallet for Your Needs

Cryptocurrency Wallet

With the advancement in technology, the world is racing towards the adoption of cryptocurrency. Still, bitcoin remains to be the most popular coin, but it is now joined by other fast-growing currencies such as Litecoin, Ethereum, and Ripple on the market. That’s why, in order to secure your digital assets, you need a reliable cryptocurrency wallet. The point of keeping a digital currency wallet is to protect yourself against any possible hack or a situation where you lose them. For this reason, we’ve compiled a list of cryptocurrency wallets to assist in finding the best match for your needs. Listing out in brief, we have:

More people in business and investors are showing interest and taking the lead in owning these digital assets. But this digital currency is gaining popularity among individuals who are planning to start a business or merely holding cryptocurrency for future investments. In the post COVID era, a cryptocurrency wallet is a must-have.

  • Online Wallets
  • Mobile Wallets
  • Desktop Wallets
  • Hardware Wallets
  • Paper/Metal Wallets

So, considering the upcoming challenges, you need to know how to choose the right cryptocurrency wallet. In this fast-paced industry, wallets are an indispensable part of owning and capitalizing in cryptocurrencies, regardless of their type. But since there is a wide variety of options in 2020, you may think about how to buy a cryptocurrency wallet for me? However, it can turn into a burden if not guided right, especially if you’re new in the crypto world.

But wait, hold on. Our detailed article here will guide you towards the selection of cryptocurrency wallets. It explains what crypto wallet is, how crypto wallets work, what to consider when buying one, and the best wallets to get.So, without any further ado, lets read about what the fuss is about.

What Exactly is a Cryptocurrency Wallet?

A cryptocurrency wallet or a bitcoin storage wallet is the first step into the world Bitcoin or crypto. Why so? Because a “wallet” is just like a bank account where we keep all our assets safe. It allows us to accept bitcoins and other digital coins, store them, and then send them to others (when required). It is your possession, and you can think of a wallet as your interface to the Bitcoin network. The concept is similar to how your online bank account works for the regular monetary system.

Additionally, just like your bank accounts’ passwords, these cryptocurrency wallets contain private keys. These keys are the secret codes that allow you to keep your coins safe. In reality, these are not any physical coins, and it is not about the cash that needs to be stored and secured, but the private keys that give you access to them.

Cutting down short, a cryptocurrency wallet can be understood as a simple app, website, or device that manages private keys for you.

Categories of Cryptocurrency Wallets

First of all, ask yourself. Do you want to store cryptocurrency in a smartphone, a computer, or a hardware device?No idea? No worries. Let us help you out.

There are two major types of wallets: they’re either cold or hot. Cold wallets mean that they are offline most of the time, while hot wallets are referred to as those that frequently need to be connected to the internet to work.

Classifying further, before buying a cryptocurrency wallet, read out the five main types: of cryptocurrency wallets. There are;

  • Online Wallets
  • Mobile Wallets
  • Desktop Wallets
  • Hardware Wallets
  • Paper/Metal Wallets

Online wallets

Online wallets are the ones that are kept and stored in the cloud. Their cloud nature makes them very convenient to access from virtually anywhere in the world. These wallets are in your reach 24/7 and as long as you’re connected to the internet. Simple!

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However, the online storage of these wallets makes it easier to hack. The keys stored online also pose a threat of theft. Your keys are not entirely in your control because they are in a centralized environment, making them more vulnerable to attacks.

P.S. It’s worth mentioning that cryptocurrency exchanges usually use online wallets because of their instant accessibility.

Mobile wallets

Mobile wallets are designed to cater to the feature of convenience. They can be kept and run on your smartphone. As cellphones are an integral part of our everyday life, there’s no doubt that most people love mobile wallets. Plus, the important part is that they are also very user-friendly and quite stylish to keep.

Another benefit of the mobile cryptocurrency wallet is that your keys are usually stored locally in your device. But it can be a negative point too if you’re not that tech-savvy and security geek. Considering the doubtful security of some smartphones, mobile wallets tend to suffer from various security shortcomings.

NOTE. There is an option to store keys of specific mobile wallets in a cloud, as a safety precaution.

Desktop wallets

Here comes another most-used cryptocurrency wallet. Desktop wallets work most likely similar to the mobile wallets, and you can download them on your computer regardless of the operating system you run. They are a relatively secure method of keeping your cryptocurrency/digital coins safe since they can only be accessed through your computer.

However, like the most technological norms nowadays, our phones, tablets, and computers are always connected to the internet. So never assume that your keys can’t get stolen.

Hardware wallets

If you’re kind of worried about storing your cryptocurrencies for the long-run, then a hardware wallet is the best option. As far as security is concerned, these wallets offer the most secure way to keep your digital assets safe.

Unlike software wallets, hardware wallets let you store your keys on a hardware device. These wallets are the best for keeping large amounts and thus are being used by most businessmen.

The only thing that is considered as a significant drawback of hardware wallets is their expensive price range. But we all know those good things don’t come cheap.

Paper/Metal wallets

As the name suggests, paper wallets allow you to store your private and public keys on print, usually via Q.R. codes. It is a type of COLD wallet that does not require electricity to access the data. A cold storage device can be a physical box, a piece of paper, or a list of numbers and letters that you keep in your head.

But it doesn’t have to be only paper. As strange as it might sound, it’s a very safe solution to store your private keys. To spend money from your paper wallet, you need first to transfer it to a software wallet.

As you can tell, the main drawback is the fact that a printed wallet can easily get lost or stolen.

What to Consider When Choosing a Crypto Wallet

Ask these questions before buying a cryptocurrency wallet:

  • Is it only compatible with Bitcoin?
  • Can this wallet store multiple types of cryptocurrencies?
  • How secure is the login process?
  • Does the wallet offer me a two-factor authentication?
  • (If you have a shared wallet) Does this wallet offer a multi-signature feature?
  • Is the wallet “hierarchical deterministic” (H.D.)?
  • How trustworthy is the wallet provider?
  • Can I use this wallet easily, or it has complexity?
  • Can I backup my wallet data?
  • What do people say about the wallet? (Check online communities and forums like Bitcoin Reddit)
  • Is there any fee that you will have to pay for the provided services? If so, what are they?

Other than these useful questions, go for the cryptocurrency wallet that is

  • Ease of use – Portability is not a trait all types of wallets possess, so keep this in mind.
  • Purpose – What are you using your crypto assets for?
  • Security – If you’ve noticed the trend, the colder the wallet is, the more secure it is.
  • Price Range – What’s your budget for this wallet?
  • Multi-currency Support – If you plan to hold more than one cryptocurrency, then picking a wallet with multi-currency support is a must. 
  • Reliability – How trustworthy is the manufacturer? It would be best if you did not take unnecessary risks when it comes to your money.

Final Words

Doing the one-time research for the right wallet can be a real tough decision. List your requirements and intentions before making a decision, as there’s a wallet for every type of need. All you need to do is decide on which one best fits yours. Good Luck!

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