If you want to get involved in cryptocurrency trading, you should know How to choose a Crypto Wallet. Well, in this article, we will go through the preconditions Choose a Crypto Wallet that is suitable for you.
19 November 2019, AtoZMarkets – It is important to choose crypto wallets to make any transactions through cryptocurrency. The crypto wallet is an important bit of software that stores the crypto ‘keys’. It is like keeping the money in a public place where anyone has permission to insert their money. However, only those who have private keys are able to remove the money. This is the concept of a crypto wallet. Any wrong decision in choosing a safe wallet may lose all your money. A right crypto wallet will save you from any type of risks in the online.
However, there are lots of different types of crypto wallet services. Some of them are app-based or offline services. Moreover, there are also web-based services available to pick. After completing this article, you’ll be able to pick the right crypto wallet service for your personal needs.
First, let’s have a look at what a cryptocurrency wallet is!
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a software that holds the keys to send & receive various blockchain cryptocurrency tokens. It stores the ‘private’ keys and your ‘public’ keys to secure communications with the other blockchain cryptocurrency ledgers. It also allows you to look at your cryptocurrency balances.
The interface of the software helps users to understand their cryptocurrency holdings. The blockchain works with the upgradations of ledgers across all ‘nodes’ on the blockchain network. This means all individual ‘ledgers’ are updated at the same time. Therefore, the wallet doesn’t hold crypto money but record the transaction only. However, a ‘ledger’ is another word for a ‘database’. The terms of ‘ledger’ are more familiar than ‘database’ in the crypto world. On the other hand, the ‘node’ geeks call of the individual computers that run and maintain the blockchain.
Unlike the wallet, the cryptocurrency wallet doesn’t store any money like PayPal’s account store funds. This is one of the crucial differences between crypto wallets and other online money accounts.
How to choose a Crypto Wallet
Choosing the best crypto wallet is quite challenging for investors. the types of crypto wallets differ from the person to person in accordance with their needs. some wallets are suitable for regular small transactions while some are for long term investment. However, you have to follow the below-mentioned checklists before Choose Crypto Wallet that is suitable for you.
#1 Choose Single or Multi-Currency
Besides Bitcoin, there are hundreds of cryptocurrencies with distinctive ecosystems and infrastructure. If you’re interested in using a variety of cryptocurrencies, you don’t have to set up a separate wallet. There are multi-currency wallets along with the single currency wallets. It is quite convenient to use multi-currency wallets to use several cryptocurrencies. The multi-currency wallets will allow you to hold several types of crypto assets with options to exchange between them.
#2 Transaction fees
In general, the crypto transaction fees are very smaller than traditional Bank fees. Sometimes you have to pay certain types of transactions to network miners as processing fees. However, some transactions do not have any fees at all. The most interesting matter is this- you can set your own fees. For reference, the median transaction size of 226 bytes needs a fee of 18,080 satoshis or $0.12. If you choose a lower fee, your transaction will get low priority. In that case, you have to wait for hours or even days to confirm the transaction. In order to process the transaction early, you have to pay higher fees. However, the transaction fees are not any amount to worry about. It is your choice to pay tiny transaction fees, or pay no fees at all. It is a definite improvement from the past!
Are cryptocurrency wallets anonymous?
No, it is not completely anonymous. However, the Wallets are pseudonymous. If the actual identity of a user is not linked with the wallet, all transactions are stored publicly on the blockchain. However, your personal street addresses will not be there. There will be pieces of information like your wallet address. Therefore, other people can trace you with those numbers. Moreover, there are some undergoing projects to make the wallets completely anonymous. One of them is “Darkwallet“- that is looking to increase the privacy and anonymity through stealth addresses.
#3 Security of the Crypto Wallet
The most important part to choose crypto wallets is to keep your funds secure. Before choosing a crypto wallet make sure to keep the security concerns at the top of your priority list. Moreover, It is important to carry out some research about the security of the crypto wallets. However, blockchain technology is the biggest innovation regarding privacy. The overall system provides security that the unbeatable. Therefore, some of the assurance about the security comes from the blockchain itself. Overall, you should make sure that you’ve done everything possible towards ensuring the security of your funds. In that sense, the “hardware wallets” will give you the highest security If you can keep the information secret.
#4 Mobility of the Crypto Wallet
In terms of mobility and convenience, online and web wallets are best. You can access the web wallet from anywhere in the world. Moreover, you can access all types of digital devices like mobile, android or windows. Some wallets provide mobile applications to make it more convenient. However, If you are planning to invest a small amount of money for regular transactions, web wallets will be the best choice. Moreover, You can use multiple wallets for multiple cryptocurrencies.
User-friendliness is one of the most critical aspects to choose crypto wallets. There are some wallets that are very boring and hard to operate. Many people struggle to find the options and setting in the software. On the other hand, some wallets are very user-friendly and easy to use. User-friendliness means the difference between enjoying the wallet and getting frustrated with it.
Generally, desktop & mobile wallets are very user-friendly. These wallets don’t need much work to set them up properly. Therefore, they need less effort and become friendly in operating. The launch of mobile apps makes the process more attractive to users.
Best Cryptocurrency Wallet for you
Every crypto investor, trader, and the user will wallets. so it’s your decision to choose your best cryptocurrency wallet.
In the app-based wallets, we can recommend the wallets like Mycelium & Coinbase. moreover, there are software wallets like Electrum. In the paper wallets, like BitcoinPaperWallet.com which is also user-friendly. Finally, Trezor is also reliable among the hardware wallets.
However, hot wallets are not 100% safe. They are only suitable for small trades. Some of the desktop wallets are included in the hot wallets. However, If you are planning to invest a bigger amount you have to choose a cold wallet. This is much better for holding cryptocurrency long term. Paper Wallet and the Hardware Wallet are one of the examples of the cold wallet. However, they’re not suitable for all types of crypto investment.
You are the individual responsible for the security of your own cryptocurrency. You have to make a lot of research before Choose Crypto Wallet. Moreover, there are no government rules to save you from any disputes. If you lose then there will be no one to help you. The paper wallets and hardware wallets can promote good ownership that means your crypto remains safe and secure. The hardware wallets are the best from the crypto wallets along with the paper wallets.
However, Make sure to think about the wallet security before you end up as a victim. You don’t want your hard-earned cryptocurrency stolen. Therefore, take your responsibility and use good wallet services to keep your cryptos safe.
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