The market for cryptocurrency rose significantly in importance in the last few months due to the economic crisis brought by the pandemic. Since people noticed the need of having currencies, assets, and bonds that are not reliant on the fall and rise of the stock market, a lot of people turned to cryptocurrency. If you are one of those who are looking to expand their investment into the cryptoverse, then you need to first have your own cryptocurrency wallet. Read through how crypto wallets work and factors you need to consider before you get one below here in Gamdom!
How cryptocurrency wallets work
Before buying the cryptocurrency you want, the first move is to get a crypto wallet. This is because crypto wallets ensure the digital coins you will buy are encrypted from point of sale to your wallet. However, encryption does not indicate that the crypto is moved from its blockchain and transferred to your wallet. Only the string of codes, authentic to each coin, are transferred so you can access it.
Additionally, since the transactions are encrypted by cryptography, it is not possible to hack it and take the money for themselves. This is possible because cryptocurrency wallets use a public key cryptography to fully secure transactions. It operates on two main factors: a private and public key assigned when someone opens a crypto wallet.
The public key encrypts the transaction by using a random string of numbers that can only be opened by a private key. So, not only does this make transactions more secure but at the same time, you can guarantee that the receiver will get what you sent.
How to choose your crypto wallet
Numerous wallets exist that you can use in crypto casinos. While all of them are secure and have a variety of notable features, you still need to choose the right crypto wallet that works for you. To begin, there are two kinds of cryptocurrency wallets: hardware and software.
Hardware wallets are known to be ‘cold wallets’ since they are physical devices like a USB used to hold your digital assets. Meanwhile, software wallets known as ‘hot wallets’, are applications connected to the internet that keeps your crypto coins safe.
Besides these two types of wallets, there are a few things you need to consider when choosing the right wallet for you. Here are some of them:
1. Accessibility
The first thing you need to consider is the accessibility of the crypto wallet. If you will be making crypto transactions often and need to access your assets quickly, then what you need is a mobile, web, or desktop wallet. The hardware wallets do not work well for ease of access and transfer since it’s not connected directly to the internet.
2. Security
While there are less risks to your digital assets from malicious scams due to cryptography, you still need to take the necessary precautions to protect your crypto assets. The most secure type of crypto wallet you can get are cold wallets since they’re not connected to the internet. This can be a USB or you can print your public & private keys and bitcoin address, on a piece of paper to keep it secure. However, the only drawback to a paper wallet is that it is easy to lose.
3. Reasonable price
If you want to secure your digital assets at a cost, then you need to consider the costs. Since cold wallets are an offline deterrent to malicious hackers, they are not easy on the pocket but their features, including pin-code security systems and regular firmware updates. Generally, cold wallets can run from $99 to $1,500.
Choose the right cold wallet for you and determine how much you want to shell out to secure your assets.
Hardware crypto wallets
Hard wallets are physical devices to secure your digital assets. Since security is the priority, various brands rose in number in the market to provide key features that will help protect your crypto assets. Here are some of the most popular cold wallets that you need to check:
Trezor Model T
Among the latest hardware wallets, Trezor Model T is one of the proven secure wallets to keep your digital assets safe. To protect your keys and assets, the wallet needs you to verify all transactions you make when you use it. Additionally, your public and private keys cannot be accessed outside the device.
You can backup your wallet using Trezor Model T’s Shamir Backup (SLIP39). This means in case you lose your wallet, you do not have to worry about your digital assets since you can recover it using the 12-word recovery seed. You can start securing your cryptocurrencies now because Trezor Model T only costs €159!
Ledger Nano S
Ledger Nano S is one of the two hardware wallets offered by Ledger, the rising star of crypto security solutions since it launched in 2014. At only $59, you can have a safe and secure cold wallet that supports Stellar, EOS, ETH, Bitcoin, and more. Additionally, Ledger has their own Ledger Live app you can use to connect your hardware wallet. This will make it easier for you to trade and buy cryptocurrencies on top of further securing your wallet.
The Ledger Nano S is compatible with 64-bit computers and Android 7+ smartphones. You only need a USB cable or an OTG kit to connect your crypto wallet to your devices.
Coinkite ColdCard
Unlike other cold wallets that look similar to USB devices, Coinkite ColdCard’s design is similar to a small calculator that protects your digital assets. The keypad is intuitive, making it easier for you to enter your PIN. It has a crypto security chip where your private key would be stored, doubling on the safety of your wallet. Additionally, there is a microSD card to backup your data.
Coinkite ColdCard has a 128×64 pixel OLED screen so you can easily see the transactions you make. Unlike other hardware wallets, Coinkite ColdCard has the option for it to never be connected to the internet, lessening the chances for hackers to steal your funds. For the price of $119.97, you can safely store all your bitcoin here!
Billfodl Steel Bitcoin Wallet
While hardware wallets boast security, losing them and the seed phrase you have to your crypto is still a possibility. Since you want to ensure that you do not lose your digital assets, then you can try the Billfodl Steel Bitcoin Wallet. This is a wallet that can back up your seed phrase, keeping it safe against hackers and indestructible from fire, water and shock.
This steel wallet uses the BIP39 word list that allows you to simply add the first four letters of your seed word and it can already identify it. Billfodl Steel Bitcoin wallet is used primarily as a backup to your hardware wallets, increasing security and ensuring protection—all at the price of $89.
Corazon
The Corazon brand of cold wallet provides a durable portable device created with a Gray titanium case. This wallet was created by Singaporean luxury and designer tech Gray in partnership with SatoshiLabs, the company behind Trezor wallets.
Not only does Corazon have tamper resistant design but it has Trezor firmware, allowing you to store your digital assets and use them without worry. Additionally, Corazon supports more than 1,000 cryptocurrencies so you can invest as much as you want in numerous digital assets.
Since you can recover your account and do more with Corazon, the prices for it begin from $700 and can reach to $1,500.
Software crypto wallets
To easily access your digital assets, you can use software crypto wallets. There are three types of hot wallets you can choose from which are: mobile, desktop, and web.
Mobile wallet
For on the go transactions, your best bet is a mobile wallet. Here are the top three mobile crypto wallets you can choose from:
Exodus
One of the most popular mobile wallets is Exodus since it supports more than a hundred cryptocurrencies. You can send, receive and trade your digital assets safely using their free mobile wallet that you can download via iOS and Android.
Exodus secures your private keys and transactions from hackers by making it only available in the device you have your mobile wallet in. Additionally, Exodus has a desktop version where you can sync your mobile wallet for easier transactions.
Not only that but Exodus offers 24/7 customer support so if you have any questions or concerns about your transactions or account, a customer representative can help you anytime.
Mycelium
Among the numerous mobile wallets, Mycelium sets itself apart by offering backup features, pin protections and hardware wallet support. There is also a TOR network support that covers the location and IP address of the mobile device.
Mycelium supports bitcoin, ETH and other ERC-20 tokens. This mobile wallet also does not have its own network since when you make transactions, it only connects to the Bitcoin network and back to Mycelium. However, this means you have full control and access over your digital assets.
You can use Mycelium for free when you download it for your Android or iOs.
Jaxx Liberty
Supporting more than 60 cryptocurrencies, Jaxx Liberty offers safe and secure mobile wallets where you have full control over your funds and seed. It is a free mobile wallet you can download on your Android or iOS that does not require registration for you to save your digital assets.
Besides this, Jaxx Liberty has 24/7 customer support that you can contact if you have any questions or concerns.
Desktop wallet
If you want to access your cryptocurrencies easily via computer, desktop wallets are the wallet for you. A digital wallet is a software downloaded in your computer, storing your assets safely and making it easier for you to make transactions. Here are the top two digital wallets:
Electrum
Fully supporting Bitcoin, Electrum desktop wallet ensures top-tier security of your digital assets. Electrum allows you to keep your private keys offline so your funds are safe and all transactions that you make are verified, further securing your wallet.
Since Electrum uses servers that connect to Bitcoin’s blockchain, you do not have to worry about downtimes because you can access your wallet anytime you want.
Atomic Wallet
Atomic Wallet is one of the most popular desktop wallets since it supports more than 500 cryptocurrencies. There is no need to register for an account or verify anything since you can use the wallet quickly.
Additionally, your private keys and assets are safe from hackers since Atomic Wallet has no access to your wallet. This is because it’s a non-custodial decentralised wallet that operates directly with blockchain nodes so you can see your information, transactions and more.
On the other hand, when you download Atomic Wallet, it offers a 12-word seed and private key. This is stored on your preferred desktop.
Web wallet
If you do not want to download applications but still access your cryptocurrencies quickly, then the right choice is a web wallet. Here are some of the wallets you can choose from:
Coinbase
Cryptocurrency exchange platforms like Coinbase offer a web wallet for you to keep your digital assets safe. This allows you to easily manage your trading activities and make exchanges from one crypto to the next without having to transfer your digital assets from other devices. Additionally, Coinbase supports 92 cryptocurrencies so you can buy and sell the assets you want without worries.
Robinhood
The financial services company Robinhood offers more than just stocks and investment options since you can use it to buy and sell your favourite crypto assets. Robinhood also has a desktop crypto wallet to make it easier for you to manage your assets anytime.
