A crypto wallet is a high-tech program that makes it possible to receive, send, and store cryptocurrency.
Types of cryptocurrency wallets
There are several ways to store cryptocurrency.
- Online cryptocurrency wallets are hosted on websites and give users access from any computer device.
- Thanks to mobile crypto wallets located on mobile gadgets, the user has access to his money at any time, if he has access to the Internet.
- An exchange cryptocurrency wallet is hosted on the crypto exchange website.
- A software crypto wallet is a program that is installed on a personal computer. The keys to a wallet in the form of an encrypted code are available to the user of the computer device.
- Hardware crypto wallets are devices that resemble a regular USB flash drive. Hardware crypto storage has its software.
- Paper crypto wallets are created on separate sites and printed by users.
- Browser crypto wallets work in the browser and are extensions to Google Chrome.
- Deposit crypto wallets hosted on the exchange platform.
Depending on the degree of security, crypto wallets are:
- Cold crypto wallets are special programs for storing keys in offline mode. Despite some inconveniences, cold storage is the most secure. The cold wallets include desktops, hardware, and paper.
- Hot crypto wallets are online services, exchanges, and applications for mobile devices that are accessed via the Internet. Such cryptocurrency storage facilities are more suitable for temporary savings of financial assets. For a long time, it is better to store cryptocurrency on cold services.
Cryptocurrency wallet risks
In some countries, it is prohibited to use cryptocurrency, as well as crypto wallets. For example, bitcoin is banned in Nepal, Pakistan, Algeria, Cambodia, Bolivia, Bangladesh, Vietnam, and Macedonia. Ecuador is planning to launch its national cryptocurrency.
When choosing online cryptocurrency savings, you should pay attention to storage security issues. There have been times when users were unable to withdraw their tokens from the online wallet. It also happened that companies to which users trusted their cryptocurrency fell apart.
Experienced crypto investors choose online storage as temporary. For long-term investment, cold wallets are more reliable.
Which wallet to choose: multicurrency or mono-currency
Initially, crypto wallets were developed specifically for a particular currency. With the growth of technology, it became necessary to use multi-currency crypto wallets. Ethereum is an example of a multicurrency wallet.
Popular multi-currency wallets:
- Holy Transaction. It has a cryptocurrency exchange base. The service sets more or less relevant exchange rates. Holy Transaction’s users can count on Amazon discounts. But, unfortunately, this service is not cryptographically secure enough.
- Exodus has a well-secured service that works with a large number of financial instruments and is constantly expanding.
- The Ledger Nano is reliable cold storage that can hold many coins.
Desktop crypto wallets
Desktop cryptocurrency storage can be installed on the hard drive of a stationary computer along with the blockchain. They are called thick wallets. There are crypto wallets that can work with a remote server. They are thin storage for cryptocurrency.
Local crypto wallets should be downloaded exclusively from the site of the developers of the cryptocurrency you are interested in.
One of the best local wallets for storing cryptocurrency in 2020 is Exodus wallets. Why?
- Supports over 100 tokens,
- Has an exchange service module,
- Convenient and intuitive graphical interface,
- Private keys are stored exclusively by the user,
- In the event of a system failure, the program is easily restored,
- There is a mobile version of Exodus,
- Exodus interacts with the Trezor Hardware Wallet on occasion.
The most reliable among thin crypto wallets are Electrum Bitcoin safes. This application does not require a blockchain installation.
- Electrum Bitcoin works with a USB stick,
- Compatible with popular operating systems,
- The project has been developing for many years,
- It is open source and has a solid reputation.
Popular exchange crypto wallets
All cryptocurrency platforms offer coin storage services. Beginners may be satisfied with this option.
However, it may happen that the services of the exchange are being hacked, or the exchange suddenly ceases to exist. Therefore, we recommend keeping small money on exchange services for a short time.
The most popular exchange wallets provide the following platforms:
Binance
It is the world leader among cryptocurrency platforms. Funds are deposited on Binance through popular exchange platforms, choosing the most suitable cryptocurrency. Transactions are made on the Binance network. Money is transferred to storage facilities that are autonomous from the exchange rather quickly. One of the advantages of the site is the low fees for services. Binance is a trusted partner for cryptocurrency investors.
EXMO
EXMO is a proven cryptocurrency platform. EXMO works with a wide range of cryptocurrency instruments, including well-known and less popular ones. The reliability of EXMO attracts investors to open cryptocurrency storage on the exchange site. This service works with popular banks and payment systems. One of the few disadvantages is the high threshold for storing cryptocurrency, which should not be less than $ 2,000 in dollar terms.
Bitex Book
It quickly deposits and withdraws funds. It is a young cryptocurrency resource. On the platform, it is possible to store currency at the user’s choice.
Conclusion
Cryptocurrency wallets are an integral part of the use of cryptocurrencies. They are one of the main infrastructure elements that allow you to send and receive funds through the blockchain network. Each type of wallet has its advantages and disadvantages, so it is very important to understand how they work before using them.
