Best Cryptocurrency Wallet: Exploring Choices to Store your Cryptos
- If you’ve just stepped into the crypto world by purchasing your first few cryptocurrencies, you might be looking to know which type of cryptocurrency wallet to choose to store them.
- For seasoned crypto enthusiasts, this task is nothing.
- However, a newbie who’s interested, it can be quite daunting.
- In general, there’s no hard and fast rule for it.
- In reality, it depends on your preferences.
- Still, here are some tips on how to choose the best cryptocurrency wallet.
- Firstly, let’s know what’s cryptocurrency wallet.
- In a nutshell, a cryptocurrency wallet refers to a software program that stores your public and private keys which enable the sending and receiving of cryptocurrencies at the press of a button.
- Although calling it a cryptocurrency wallet would be a misnomer as it doesn’t store your crypto coins, it enables you to interact with the blockchain during transactions.
- There is one important thing to consider that a person gets three ways to store their cryptocurrencies: software wallets, hardware wallets, and custodial wallets.
- Also, you need to think about storage, which can be either cold or hot.
- Hot storage means you choose to store your coins online that may be prone to hacks, whereas cold storage means taking a person’s crypto coins and keeping them securing offline.
How to Choose the Best Cryptocurrency Wallet, what are the Types and their Usability?
- These wallets get generally used to store your private keys through a third-party.
- If someone is a newbie in the crypto world, it’s recommended to use a custodial wallet.
- Hong Kong-based Bitfinex and San Francisco-based cryptocurrency exchange/trading platform are instances of custodial wallets. And, the wallet comes integrated with these platforms, thus, no need for resorting to other types.
- If we talk about the merits of a custodial wallet, a user doesn’t need to ponder over remembering their private keys: they only need to remember their login details to access the platform.
- Also, it offers quick and easy management of funds.
- On the contrary, the bane of a custodial wallet is that it doesn’t provide its users with complete control.
- However, they certainly offer a high level of security in comparison to others.
- Typically, custodial wallets are also hot wallets.
- Based on computer programming, this type of wallet is accessible anywhere.
- Mainly, they are available in three formats; desktop, online, and mobile, they are intuitive and provide a myriad of options on the device you use more.
- Let’s breakdown the types to understand in a more comprehensive manner.
- Desktop wallets
- The main advantage of a desktop wallet is that you can store it on your laptop or PC. Don’t depend on a third-party and provide users with complete access and control to their funds.
- However, if we talk about security, it solely depends on an individual’s due diligence.
- So, if a person’s device doesn’t have the latest security procedures in place and isn’t protective enough against hacks and viruses, it could result in the loss of valuable coins forever.
- Mobile wallets
- Mobile wallets function through an application on your phone along with providing quicker and easier access when required.
- A person’s private keys get stored on the application to enable the purchases through the phone.
- With the increasing use of smartphones, the use of mobile crypto wallets may experience a steady rise in their adoption.
- Online wallets
- They are web-based cryptocurrency wallets, accessible from anywhere and on any device.
- One of the most convenient types of a cryptocurrency wallet: an online wallet comes with one disadvantage, third-party stores your private key.
- With crypto coins stored offline, a hardware wallet is one of the most secure ways to store your cryptocurrencies.
- Similar to a USB device, a hardware wallet refers to a physical device. Its sole purpose is to store a person’s private and public keys.
- As you don’t need to connect it with the internet unless a transfer needs to be done, there’s no chance of it becoming vulnerable to hacks and threats.
- Using a hardware wallet is quite easy. Just plug it into your computer, enter the pin, and start transferring or receiving required currency.
- In case if it gets lost, you can still upload your funds to a new device using the seed words that come along with the hardware wallet, also used to restore funds.
- If you want to choose the best cryptocurrency wallet, firstly, outline your preferences, as there’s no clear answer.
- Eventually, it comes down to what you need the most; convenience, security or ease of use.
- Your requirements such as how you utilize your cryptocurrencies, how much you own, and how you plan on storing it, play a crucial role when you set out to choose the best cryptocurrency wallet.
- So, we advise you that perform the due diligence to make sure that the one you choose is the best cryptocurrency wallet.
- A few important reads:
- Blockchain Wallet Developer
- Blockchain Wallet Development
- Blockchain Wallet Development Services