The best crypto wallets for storing cryptocurrencies such as Bitcoin, Ethereum, XRP, EOS, and Litecoin.
A cryptocurrency wallet is a place to store digital currency. It can be cold or hot. The cold will allow you to carry out transactions without an Internet connection. Hot can only be used when accessing the Network.
A cryptocurrency wallet is not needed for the physical storage of funds. Its main function is asset management.
The wallet consists of two keys: public and private. Each one represents a sequence of characters. A person who knows both keys can perform any operations with the account.
The public key is the wallet identifier. In fact, this is an address in the Blockchain – a database containing information about all transactions of participants. The public key is known to all participants in the system. It is used to receive digital currency.
The private (private) key provides a password. It is used by the vault owner to confirm operations.
In order to recover the private key, the seed phase is used – a random sequence of 12-24 words. If the owner of the wallet has forgotten both the seed phase and the private key, then he will not be able to manage the assets.
The wallet is selected according to the following criteria:
1. Security requirements.
Free online or mobile wallets are suitable for storing small amounts. In order to enhance security, transactions are confirmed with a pin code or 2FA code. More secure, but paid, is considered a hardware wallet.
2. The frequency of transactions.
In a hardware wallet, the storage of funds is cold. Operations with it are performed only when connected to the Network. For those who trade a lot, this option is not suitable. They opt for online or mobile wallets.
3. Type of cryptocurrency for storage.
There are vaults designed for certain types of cryptocurrencies. This is not always convenient. Multi-currency wallets are suitable for operations with different types of coins.
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Below are the main types of crypto wallets and explanations of how they can be created.
1. A desktop wallet is a computer program that requires installation. It gives access to the Blockchain and allows you to make transactions with coins. You can download such a wallet from the site. To protect assets, it is recommended to put a password on the vault.
Ideally, it should be:
2. An online wallet for digital coins is good because it allows you to store currency on the server. To create one or more wallets, you need to register on the site. There you can also transfer from one currency to another, trade on the stock exchange, etc. A commission is paid for each transaction.
User participation in the fate of the online wallet is minimal. The storage is hosted on a server that can be hacked at any time.
3. Hardware wallet is popular among users but costs money. It fits in a physical medium, often resembling a flash drive.
A hardware wallet for storing cryptocurrencies is safe because:
If you lose a flash drive, you can buy a new one. To make the coins available, you need to enter a private key into it.
The storage rating is formed according to several criteria. The most important of these is security, that is, resistance to hacking.
The top includes popular applications and services.
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Blockchain.com developers claim that this platform is the most popular among all. However, when choosing a crypto wallet, you need to consider the purpose of its use.