Wondering how to Store your Cryptocurrency? Here are some of our Favourites
If you’re a stakeholder in blockchain, you’re going to need to find a secure place to store your cryptocurrency. There are a number of different options on the market for crypto wallets and each type has its own benefits and disadvantages. Which wallet you choose depends on how you plan to use your crypto. All wallets work by saving the information necessary to access and trade tokens, but each works a little differently.
So how do you know what type of wallet works best for your needs? And then how do you choose from the hundreds of options out there? We’ve made it easier for you by breaking down the types of wallets available and then put together a go-to list of some of our favourites.
Three Types of Crypto Wallets
All of the wallets available can essentially be divided into one of three categories. Cold, hot, and paper.
Cold wallets: Also referred to as hardware wallets, these are considered the most secure and longest-lasting options. Cold wallets are offline storage that is protected from hackers because they are not connected to the internet. These devices are similar to a flash drive and can connect to a computer to access the coin for trading.
The primary downside of cold wallets is they don’t provide immediate access to the blockchain without connecting to the internet first. The user must have physical access to the device to use their currency, and some traders also feel these wallets are more complicated to use than hot wallets.
When it comes to security, cold wallets are the way to go. Many crypto whales choose cold wallets to store large amounts of currency, especially if they plan to hold onto it for a long period of time.
Hot wallets: These wallets are software-based and do not require any connection between a separate device and your computer or mobile phone. They can be accessed via the blockchain directly.
The concern with hot wallets is that, because they are accessible to the internet without a physical device, they are much more susceptible to hackers. Platforms that create these wallets are constantly working to add additional security layers, but there is always a risk when the information is available on the internet.
Frequent traders often prefer hot wallets because they tend to be more user-friendly and grant easy access to funds. Transactions can happen quickly and from anywhere when using hot wallets.
Paper Wallets: Paper wallets are one of the most affordable ways to store your cryptocurrency and are extremely secure. However, these physical wallets are becoming less popular as cold storage develops and becomes increasingly more secure.
Paper wallets are literal pieces of paper that have your public and private keys printed on them. Your coin cannot be accessed by anyone without these keys, so if they are solely stored on pieces of paper, there is no way for anyone to hack your currency.
The downside to that security is that if you lose your paper with the codes, you have no way of accessing your own coin. Many crypto whales that choose paper wallets have a scanned copy stored somewhere safe, like a security deposit at the bank.
Each type of wallet has its positives and negatives, depending on how you are using your cryptocurrency. At the end of the day, many crypto whales like to store their coin across different wallets. Breaking it up this way reduces the risk of losing large sums of money, while still allowing the user easy access to trades throughout the blockchain.
We also wrote another blog article on browser wallets specifically, you can check it out here.
Some Of The Best Wallets On The Market
There are so many options for crypto wallets on the market, depending on your primary needs. We’ve gone through and highlighted a few of our favorite wallets currently available.
Our favorite hardware wallet is Ledger. This wallet works with a wide variety of cryptocurrencies through a universal blockchain interface. Ledger’s modular architecture is underpinned by an advanced peer-to-peer architecture that allows users to customize their experience according to their needs.
The Ledger wallet is widely praised for its high level of security and some feel that it is easier to use than other hardware wallets thanks to its customizable options. Ledger wallet also offers apps for Android and iOS platforms as well as desktop platforms such as Mac OSX and Windows.
Trezor is one of our top picks for hardware wallets. The Trezor wallet offers the highest level of security for your cryptographic information by storing everything on an isolated chip called a secure element.
The actual device is attractive because it is compact, durable, and has great lighting on the OLED screen. Trezor is regularly updated to continue to offer increased security and features.
Atomic is secure, easy to use, and has a very well-made user interface. It supports most major coins in circulation today, including Bitcoin, Litecoin, Ethereum, Dash, Ripple, and many others. The Atomic wallet also allows you to add and manage any ERC20 tokens.
This wallet is favored by traders because of user-friendly features like Atomic Swaps which makes it easy to trade coins without having to go through an exchange. It also has a variety of security settings for securing passwords and other personal data.
A great option for storing all your coin and tokens, Trust is safe, secure, and has a functional design to make it easy for everyday transactions. The Trust wallet app features over 20,000 ERC-20 tokens and supports Bitcoin (BTC), Ether (ETH), Ethereum Classic (ETC), and many more. The goal of Trust is to empower people with honesty, transparency, and freedom. You can download Trust wallet on any android or iOS device.
MyEtherWallet, or MEW, is a top choice if you’re looking for an easy-to-use wallet that offers a high level of security. MEW has an easy-to-use UI that allows you to create multiple wallets simultaneously. This wallet keeps you fully in control of your assets by giving you the ability to create a backup phrase. MEW is one of the most popular online cryptocurrency wallets and one of the biggest Ethereum wallets. MEW is available for Linux, OS X, Windows, and Android devices.
Our team at WhaleRoom is excited to announce that we are currently building our own proprietary wallet and exchange balance aggregator. This is important because many of our users store their currency across different wallets for security reasons. We want to make it as seamless as possible for our users to integrate with the community. Additionally, we’re providing a secure way to prove that they meet the minimum required to access the dedicated chat rooms of their favorite crypto projects!
Technology at WhaleRoom is always changing as our community continues to grow! We hope you’ll join us today and start interacting with other crypto enthusiasts about the hot topics and projects currently impacting the blockchain community!
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