What is a Cryptocurrency Wallet?
- A Cryptocurrency wallet is a virtual wallet that is analogous to the physical Wallets. It is computer based program software that stores private and public Keys. It interacts with various cryptocurrency Blockchains. People having their account in wallet can use it to send or receive the cryptocurrency coins.
- A cryptocurrency wallet does not store currency unlike traditional wallet. It keeps the account of all the public key and private key and sync it with the Blockchain.
Different Types Of Cryptocurrency Wallets
- There are many types of wallets that provide numerous ways to store and access the digital currency. Wallets can be categorized into three distinct categories.
- Desktop wallets can be downloaded and installed on your system. It is accessible from the single computer in which they are downloaded but if computer gets hack then you may lose your data too.
- Online wallets run on the cloud and they are accessible from any computing device. These are considered to be convenient.
- Mobile wallets run on app on the phone and are useful since they can be used anywhere including stores and it is much smaller as compared to Desktop.
How to decide whether Cryptocurrency Wallet is the best?
- There are Different Points that one should keep in before selecting the wallet.
- You should think whether the wallet you require is needed for everyday purchases or holding digital currency for an investment.
- You want to use it to sell or buy various cryptocurrencies or one currency.
- You want to access wallet from anywhere or your home.
- You should take time to assess your requirements and chose the suitable one.
Some of the Best Wallets
- Application-based wallets are very popular. The top three highest rated wallets app are Mycelium, Cryptonator, and Copay.
- Mycelium is a mobile bitcoin wallet app which is easy to use and convenient. It has a strong history within the cryptocurrency industry. It was launched in 2008. Mycelium is an app that provides its services through an app for smartphone users.
Some Important Points
- There are various points to keep in. You are responsible for the security of the wallet. There should quite a good amount of research done before choosing the best cryptocurrency wallet. There are no government rules so you may lose all and nobody is there to help you.
- Paper wallets and hardware wallets can promote good cryptocurrency ownership. It means your crypto remains safe and secure. There are many wallets that offer full anonymity, which is something important to us and you should ensure which wallet offers the feature.
- There are reviews available on a various social media website about the wallets. This helps majorly to shortlist or select the wallet from many.
- There are different forums where you can explore and find out which has agood reputation and what other peers think about the wallet and it solves your query too.
Your Wallet Must Be Secured
Like the traditional wallet, your wallet must secured. Bitcoin makes it possible to transfer the value everywhere in very easy method.
It is the responsibility of the user to adopt good practices in order to protect money.
Backup Your Wallet
- Your wallet must be Backed up , so that it dont creates trouble for you if your device fails or if human mistake is there. Backup can allow you to recover the wallet after your mobile or computer was stolen, but your wallet must be encrypted.
- Some wallets have feature of using hidden private keys internally. If there is backup of the private keys for your visible Bitcoin Addresses.
- You won’t be able recover great part of your funds with your backup.
Any backups that are stored online are highly vulnerable to the theft. Even if computer is connected to the network that is vulnerable to malicious software
Backup to be Stored in Various Locations
Backup stored at single point can be a bad idea for security. Your backup should be stored in various places so that you don’t depend on single location.
Based on the connections your wallet can be classified into two categories
- Hot: A wallet is hot when it is connect to the internet. There is nothing on internet which is 100% secure, if you keep your funds in Hot wallet, there can be theft
- Cold: A wallet is cold when it’s safely offline and cannot be deliberately or accidentally compromised over the network.
Some Standard Practices That Everyone Should follow in Order to Secure
- There should be always use of strong username and passwords
- You should install antivirus and antimalware software and keep them up to date
- There should be setup of secure firewall
- You should never install software developed by companies that can’t be trusted
- You should use verified and trusted wallets
- Your wallet must be updated on regular basis
- Double check the public address of yours while sending money
- Double check the recipient’s public address when sending money
- If accessing an online wallet make sure the address is secure
- Never access online wallets from the wifi
Recommendations And Points
- Some wallets require only username and password to access it . There are some wallets that requires two factor authentication or the pin code generator to access. The wallet having more security layers a wallet provides the better.
- You must choose best wallet to do transactions of cryptocurrency, since there is no backing of any government’s rule and policy. It may lead to huge loss of if not chosen wisely and correctly. There are various points explained in the writeup, one must follow those to have transactions securely.
- Various Cryptocurrency wallets are present in the market. There are wallets called Bitcoin Knots, Bitcoin Core, Edge, Green Address, mSIGNA, Mycelium, Airbitz, ArcBit, BitGo, BTC.com, Coin.Space, Simple Bitcoin, Trezor, Armory, Bitcoin Wallet, Bither, BRD, Digital Bitbox, Electrum, GreenBits, KeepKey and Ledger Nano S.
- Paper wallets are recommender for long term HODL-based Crypto-investments. However, for regular big money crypto investments, hardware wallets like Trezor and Ledger are recommended.
- It has been found that offline cold storage of cryptocurrency investments have more security. It is more like keeping your bitcoin in the vault. You only know the access codes, and that is what makes it so secure and safe!
- It was concluded like hardware wallets are best crypto wallets type and paper wallets are not far behind.
- Trezor Wallet
The Trezor wallet is one of the best hardware wallet. It is called best cryptocurrency and it is bullet proof and hyper secure. It supports Windows, Mac, Linux, MAx and has one of the best Android wallet apps that are available for cold storage crypto investment.
The Trezor wallet has full two factor authentication, a password manager application, It is compatible with ERC20 Tokens. It provides cryptocurrency support for different crypto coins that includes Dash, Bitcoin and Ether
Best Cryptocurrency Wallets
- If we see present ranking of the wallets the statistics are like this
- Coinbase is an online exchange platform where exchanges are large, less secure than the methods. It is has been observed that coinbase has learned from the predecessors and is one the biggest bitcoin exchanges in the world.
- The features are user friendly , allows user to sell, buy, trade bitcoin and also features to store bitcoin in wallet there.
- info is Web based wallets that can pose some security issues and hacking
- Electrum is a popular and free storage software wallet. It is well respected desktop storage apps. It has been there around and is available for mobiles like apple iphones
- Electrum has good user interface which very nice
- Many people have confusion for MetaMask but since it is a ethereum wallet it is completely different from Bitcoin Wallet. So if you want to pick Ethereum wallets, you should have different mindset altogether
- Ethereum wallets are not only capable of storing Eth but also look for ERC20 Support
- Metamask is the self hosted wallet to store, send and receive Eth and ERC20. It allows you to control funds and it is an HD wallet which provides a mnemonic phrase that helps to keep as a backup. Metamask is the extension in the browsers such as firefox, chrome and Brave. You can easily manage ERC-20 Tokens as ethers.
- You will find various internet resources where you can find more about the technicality of the metamask , information on how to install etc.
- Metamask is the wallet which is second best ETH and ERC20 wallet and you can store ETH and ERC 20 both. The advantage of using metamask is that it automatically blocks suspected website if it is on.
- MetaMAsk wallet can allow us to access DApps like Crypto Kitties and other Ethereum applications.
- Metamask also acts as Ethereum Blockchain Browser. It is a multi-purpose wallet and used many times for quick desktop transaction and as well as security protection against phishing websites.
- This write up contains detailed information about the various Crypto Wallets and It can help you to choose some.