Buying your first cryptocurrency as a new investor is a one-big thing, and choosing good cryptocurrency wallets to store them is another important decision to make also. So, in this article, we will list some of the top wallets worth considering, especially for new entries in the cryptocurrency market. First of all, what are cryptocurrencies actually?
Cryptocurrency in Brief
Cryptocurrencies are virtual or digital money based on blockchain technology. They are only available online, and can’t be touched like fiat currencies such as US dollar, British pound, etc. Bitcoin (BTC) was the first-ever digital currency to exist in the world. However, there are more than 1,000 cryptocurrencies in existence today, including Ethereum, Ripple, Litecoin, Bitcoin Cash, and others. Overall, the entire market valuation of cryptocurrencies is slightly over $1 trillion as of January 30.
Aside from functioning as digital money, many people buy cryptocurrencies, especially BTC, as an investable asset or store of value, while some people purchase digital currencies for trading. Whatever be the reason, you must have a digital wallet to receive and transfer cryptocurrencies. Similar to the regular wallet, digital currency wallets are where your cryptocurrency is kept. There are online and offline wallets, all of which serve the same purpose, except that the latter offers more security for your cryptocurrencies.
The Common Types of Cryptocurrency Wallets?
Online Wallet: As the name implies, this is the kind of wallet that depends on an internet connection to function. Also known as hot wallets, these internet- based wallets are mostly issued by crypto exchanges when you register with them, and it’s totally free. One of the advantages is that it’s more ideal for sending cryptocurrencies instantly, and for trading. However, security is also a concern here, given that, if (paraventure) the exchange gets hacked, you are likely to lose your coins.
Offline Wallets: This is simply the opposite of online wallets. Offline or cold wallets don’t completely depend on an internet connection to function. In this case, your cryptocurrencies sent to this address are stored offline, meaning your assets are secured from hackers, except the keyphrase is exposed to bad actors. Basically, offline wallets are mostly recommended for deep-pocketed investors, who wish to HODL their cryptocurrencies for a long period of time.
However, you probably should consider security and convenience when choosing a particular wallet, whether offline or online wallet. Especially for new investors, below is the list of five cryptocurrency wallets you should consider.
If you prefer to use a cold or offline wallet, Ledger is one of the leading cryptocurrency wallet providers you might want to consider in 2021. Ledger is a French company that has been around for a long time. Its products have gained a reputation in the crypto market as one of the secured wallets to use. However, it’s also worth noting that they recently underwent a security breach that exposed the contact information of its customers.
Notwithstanding, the customers’ crypto weren’t affected. That aside, Ledger wallet can accommodate a large number of digital currencies, making it an ideal choice for those who would love to purchase and HODL many cryptocurrencies at once. The wallets come with a USB Type C cord, which can easily be plugged into your phone or desktop. This makes it easy for you to access your crypto on-the-go, and most importantly, Ledger wallets are not free.
2. Coinbase Wallet
Coinbase is the leading American cryptocurrency exchange that can provide you a free hot/online cryptocurrency wallet. For a start, new investors can consider using the exchange’s wallet for their cryptocurrencies as it’s beginner-friendly, with an easy-to-use interface. One perk of using the wallet is that you can easily access Coinbase exchange from your wallet.
The exchange will provide you a wallet address for many cryptocurrencies like Bitcoin, Ethereum, etc. Coinbase wallets are also available for both Android and iOS users. You can also connect it to your bank account. Your wallet is protected by biometric authentication technology to ensure your coins are protected from unauthorized persons.
Exodus is a free cryptocurrency wallet that is easy to use on your desktop or phone. As a cold wallet, it can accommodate only 100 cryptocurrencies, which some users might find limiting. Using this wallet attracts no initial charge. You only have to pay fees for activities you carry out on Exodus.
With this cryptocurrency wallet, you can also swap any of the supported coins and it’s easy to navigate for beginners. Unlike other wallets on this list, it is not open source. This means that only Exodus staff can correct any issue with the wallet.
Trezor is another noteworthy cold cryptocurrency wallet provider. Its wallets can accommodate over 1,400 cryptocurrencies. It can be connected to either your mobile phone or laptop through USB Type C. Many people also rate Trezor as one of the providers of secure crypto wallets. It has a web-based interface that allows you to easily interact with your coins.
Users are also allowed to incorporate third party exchanges to Trezor wallets.
5. Trust Wallet
Trust wallet is a mobile cryptocurrency wallet with beginner-friendly functions. In addition to supporting many cryptocurrencies, you can easily make purchases with credit cards directly from the wallet application. Like every other wallet, Trust Wallet also promotes itself as the most-secure mobile wallet application and has more than five million users. It’s a free application and can be downloaded from Google play store.
Interestingly, the wallet also supports crypto interest-earning features, including trade charts for more advanced cryptocurrency users.
Ensuring adequate security for your cryptocurrencies is an important decision to make, whenever you purchase it. Since these are virtual money, the growth of the market has attracted cyber-criminals. However, with proper security standards on exchanges and using cryptocurrency wallets, the risks are greatly reduced, provided you don’t expose critical information like your wallet keyphrase to the public. You must keep the private keys, PINs, or passwords of your wallets away from the reach of any other person, to minimize the risk of theft.
Also, it’s important to safe-keep many copies of your keyphrase, to avoid being locked out of your cryptocurrencies. Some users have lost huge amounts of crypto because they could not remember their private keys.
Do make your own research before using any of the listed wallets.
Source: Five (5) Cryptocurrency Wallets to Consider in 2021