Transactions in digital currencies are becoming more and more popular. As the number of users of cryptocurrencies increased, so did cybercriminals. To avoid the theft of cryptocurrencies, it is important to store it under reliable protection.
What is a cryptocurrency wallet?
Crypto wallets are software or hardware applications for storing cryptocurrencies. Cryptocurrency traders and holders need them to buy, trade, and sell cryptocurrencies, securely store coins, as well as protect assets and verify transaction information. Compared to a cryptocurrency exchange, external storage is more reliable and secure.
Cryptocurrency wallets do not store your cryptocurrency but interact with the owner’s accounts on the blockchain network and provide access to transaction history. When someone sends HBAR vs XRP or any other digital currency to your crypto wallet, they are not literally transferring coins. In this case, the ownership of these coins is written to your wallet address. That is, it is confirmed that the cryptocurrency in the blockchain no longer belongs to the previous address but belongs to yours.
Classification of cryptocurrency wallets
Storages can be divided into two groups: hot (connected to the Internet) and cold (offline and offline).
Hot wallets can be accessed from a phone, tablet, desktop computer, or browser, which means you can use them on various devices. The biggest advantage of hot wallets is their convenience. This ease of access makes them ideal for frequent traders. Since hot storages are always available online, they are at greater risk of cyberattacks.
Cold wallets store your digital keys offline on hardware or a piece of paper. Hardware wallets are devices that allow you to buy, sell, and exchange cryptocurrencies while connected to a computer or mobile device.
Cold storage is deliberately designed to be difficult to hack. Hackers cannot obtain the owner’s keys remotely unless the owner is subjected to some phishing attack. The thief will need to steal your device and then somehow crack the code physically. Of course, the possibility of a $5 wrench attack is not excluded, but you are careful not to walk around with a banner like “I have a wallet with 100 BTC in my pocket” or something like that.
How to choose a crypto wallet
First of all, it is important that the functions of the storage fit your needs as much as possible. Choice factors include:
- Features of the use of coins.
- Security features.
- Multi-signature support.
- Backup capability.
In some vaults, the possibility of buying cryptocurrencies from bank cards is implemented. However, if it is impossible to convert USD to LINK this way, it can always be done on LetsExchange.
The best crypto wallets
One of the most popular hardware wallets that can securely store private keys offline. Ledger supports the most popular cryptocurrencies, including Bitcoin and Ethereum. To activate, use the Ledger Live application. During the setup process, you need to write down a seed phrase to restore the wallet in case the main device is lost
Trust provides access to cold storage and offers two-factor authentication for its users. The wallet supports over 100,000 coins and tokens.
Trust is available as a free app compatible with iOS and Android devices that anyone can access.
An excellent cryptocurrency storage software that helps you store all your cryptocurrencies and NFTs in one place. It is a decentralized wallet that protects all your assets with industry-leading security technologies. It offers two-factor authentication and implements a multi-signature policy that can be used for business purposes. Registration on the exchange of the same name is not required.
It is a non-custodial desktop and mobile hot wallet that is completely free. Exodus supports over 180 currencies and is one of the most convenient wallets. It is quite affordable and suitable for use by both beginners and professionals. Exodus allows you to enable two-factor authentication.