Are you looking for the best crypto wallet to safely keep your cryptocurrency investment? Are you into cryptocurrency trading and mostly make money with cryptocurrency and want the best cryptocurrency wallet for storing your earned crypto coins?
Don’t worry, i got you covered right here already. As a serious crypto coin investor, there is no way you will be using only one kind or type of wallet. Many professionals doing cryptocurrency trading, that always get different cryptocurrencies like using different cryptocurrency wallets to safely guard and secure their investments – be it a big money investment or little pocket-money.
However, choosing the best cryptocurrency wallet for your multi cryptocurrency transactions, depends on the specific needs you’re looking unto, and the level of security you also want for your investment.
We live in a world where technology has made almost everything and anything possible. But before i continue on letting you know about the best crypto wallets for your cryptocurrency investment, i will like you to know that, the best kind of cryptocurrency wallet, is the one that allows you to have full access to your private keys, which i always advice investors to keep safe in a very secured place that only them will know. If you also ask me, i will say that for me, a multiple currency wallet will be the best for you, because it will serve as a universal cryptocurrency wallet.
Let me go straight and explain what cryptocurrency wallet really mean before we can move further ahead to why you’re on this page.
What is cryptocurrency wallet?
If you are considering investing in cryptocurrencies like bitcoin or any of the altcoins cryptocurrency investment, that would be very great, but you will obviously need somewhere to store your coins. It is from this place that you will store your crypto investment is where from, you will be sending or receiving all your crypto assets. This storage place, space or device is the cryptocurrency wallet.
Crypto wallets comes in forms and kinds. These forms include hardware wallets, software wallets, paper and web online wallets. Most of these kinds of wallets, especially the desktop software wallets runs in full nodes. This means that they always download the complete blockchain copy to get access to your cryptocurrency stake.
The full nodes wallets always takes time to synchronize with the blockchain to reach your stored cryptocurrencies. This makes them to create massive amount of data in offline storage of the device. Alternatively, there is a lite version of the wallet known as, Simple Payment Verification (SPV) wallets which uses the full node, but this time, it uses full nodes that is hosted elsewhere.
This makes it helps to make it faster to reach blockchain network to confirm transactions. It also uses less space in the storage disk.
Difference between multi currency wallet and Single-currency wallet
As a cryptocurrency investor, you may have acquired many kinds of cryptocurrencies, and maintaining them with separate wallet is always tedious and overwhelming. So this is why you need to use a universal cryptocurrency wallet that can be able to securely hold all your cryptocurrency investment in one place at once. Many wallets are available now with support for all cryptocurrency almost.
However, some cryptocurrencies like Ripple and Monero still uses their unique wallets. The are not well supported by some of the best multi cryptocurrency wallets in the market. This means, you will need to get wallets specifically for those cryptocurrencies.
What is a cryptocurrency wallet key?
A crypto wallet key is a very long alphanumeric series of codes or passphrases that unlocks your cryptocurrency investment wallet content. In most cases, these passphrase called, seed words. Seed phrase-words are unrelated words used to retrieve crypto assets stored in a wallet. Anyway wallet that uses these codes or passphrase is known as a HD (Hierarchical Deterministic) wallet.
In other words, anyone can have full control or access to all the cryptocurrency stored in your wallet, without the need to also have access to your devices (e.g. Personal computer, Mobile phone etc.). This is how most people lose their cryptocurrency investments to thefts. So be very careful with where you’re keeping your seed word passphrases.
Wallet keys are used to create wallet transaction address. Wallet address is an ID characters used to receive or send cryptocurrency from your wallet. In HD wallets, wallet IDs can be created multiple times. This helps to prevent sharing your private key publicly in the bid to transact with your cryptocurrency investment portfolio. Thus, there are still some risk involve in sharing public address to other people. Especially, when they always recognize your address in any transaction.
Types of Cryptocurrency Wallets
There are different types of wallets according to how they store or retrieve the cryptocurrency stored with them during transactions.
These are the type of wallets that uses keys created by devices that has encrypted access to the Internet. These types of wallets requires access to the Internet to store or retrieve your crypto assets. The device in which they are installed can be fully accessed remotely.
Though hot wallets are the most popular type of wallets do to its utility, they are regarded as highly unsecured technologically. In case of hack, they are always the very first target for most hackers
Cold wallets are regard as the most secured type of wallets due to the fact that, they don’t need Internet access to send or retrieve cryptocurrency transactions. They totally store your investments without the need to reach the blockchain using Internet. Example of wallets in this category are; hardware wallets, paper wallets and brain wallets.
Brain wallets are wallets that only give you passphrases and password you will need to gain access to your cryptocurrency investment, while paper wallet is the type of wallet that you need to write or print your passphrases to your wallet.
This is the type of wallet that is hosted or installed in a third-party server, which you don’t have any access to your private keys. The private keys are held in an online server on your behalf. In the case of hack attack, these servers are heavily attacked due to multiple number of wallets that are stored in them.
See these servers, just like banks that holds your financial asset on your behalf. Some of these servers are not insured or regulated by the FDIC insurance.
This type of wallets is somehow the same with the cold wallets. It allows you the fullest access to your cryptocurrency transactions. You will not need any third-party server, Internet or person to exchange your cryptocurrency with other platforms and investors. It doesn’t increase your anonymity anyways.
Factors to find a well secured crypto wallet
Before you choose to start making use of any wallet, please make sure it gives it has these features below…
Backup Private keys
To fully have control of your cryptocurrency investment portfolio, you will need a wallet that has a feature to back up its passphrase seed words. This will help you to retrieve or transfer your money to another wallet in the case of misplacement or lose.
This kind of security is called, second level security. 2 FA is that kind of security whereby, if a hacker manages to crack or hijack your password, they will still need to comment a special kind of code that will always be sent to your mobile phone number, before access to your wallet can be granted. Some wallets interchange this feature with fingerprint in devices that has biometric sensors.
This feature is for when more than one person is making use of a particular wallet address. To avoid misusing, multi keys is needed before a some amount of Ripple coins can be transferred out of such address that has multi-sign feature. However, this feature can also be used by one person to fully protect their cryptocurrency funds lose from theft.
Not hosted on an exchange
A large number of cryptocurrency enthusiasts have used exchange wallets like that of Coinbase and Luno online wallet to keep their investments. This is not a good practice as there can be massive hack attack on the exchange, and the target mostly are on the wallets due the huge number of cryptocurrencies stored in it.
Generally, storing cryptocurrencies using exchange online wallet is not recommended for security purposes. And these exchanges will not allow you access to your private keys which they keep to themselves on your behalf.
This also means that, you don’t have any control of your crypto-coins. So avoid using exchange wallets to store cryptocurrencies unless you are using the platform to trade them while having a timeframe to move all of them to a more secured hardware wallet (Highly recommended).
Different kinds of crypto wallet
This also brings us to discuss on the kinds of wallets, how they are, and how they work.
Best hardware wallets
Hardwallets are mostly recommended, because they are highly secured. They are easy to carry about, due that they’re like USB devices and allows you access to your private keys. See some of the best hardware wallets below.
Ledger Nano S: Since 2014, Ledger company has been known as one of the companies in the cryptocurrency market, to produce one of the most secured wallets to store cryptocurrencies. The Nano S comes with a LED screen that displays payment validation and PIN to confirm transactions. This device is very convenient and easy to carry around in your pocket.
Nano S features two-factor authentication. It comes with its own operating called, BOLOS, and has support for windows 7+, Mac OS 10.8+ and almost all Linux systems. Ledger Nano S also has support for multitude of cryptocurrencies. It requires you to have it connected to your personal laptop with internet access to work perfectly.
Trezor Wallets: Trezor wallets are produced by SatoshiLabs. The Trezor team are the people to produce first hardware wallet using modern cryptography. The wallet has a LED screen display, which is used to get access to the PIN code.
Trezor One also has two-factor authentication feature used for verifying transactions. This device offers support for up to 500 alternative coins. It is compatible with most operating systems like; Windows, Mac OS and Linux operating systems. Just like the Ledger hardware wallet, Nano S, you also need to connect it to a computer for it to work.
Best software wallets
Jaxx wallet: Jaxx to me, is the best crypto wallet app for both PC and mobile phones. It supports almost 70 cryptocurrencies as at the time of writing this post content. It is actually a dedicated client for Windows, Mac and Linux – including an app for Android and IOS gadgets. It also has Chrome browser extension.
This cryptocurrency wallet application, Jaxx is also an offline wallet but uses Internet to synchronize and access the blockchain network when transacting cryptocurrencies. It is mostly preferred for mobile wallet users.
Binance Trust wallet app: Binance cryptocurrency exchange partnered with Trust company to release the trust wallet. This is the best mobile crypto wallet, if you would like to take part in cryptocurrency airdrops. It has support for only Ethereum DApps (e.g. ERC 20 and ERC 23) tokens. This is also a secured wallet to stored all your ETH based cryptocurrencies.
These are wallets that allows you to print or write private keys on a piece of paper. This kind of wallet are also among the most secured wallet, but it also comes with a risk of loosing your cryptocurrency investment if not kept away from water.
Online web wallets
This is a less secured and inexpensive way of storing or your cryptocurrency assets. These kinds of wallets are those wallets hosted in an exchange to temporally keep your investment while using the exchange platform to do cryptocurrency trading. It is not advisable to leave your coins on the exchanges for too long to avoid loosing your cryptocurrency investment in case of hack attacks.
Final thoughts and conclusions
The best wallets to be used for reducing the risk of loosing your cryptocurrency investment, are those wallets that doesn’t need to continuously have access to the Internet to keep your coins. These kind of wallets are always secured from hackers.
Ledger or Trezor is the highly preferred wallets you should have at your disposal as a serious crypto investor. The best strategy to use other kinds of wallet, is to keep up a time-frame for keeping any cryptocurrency with these unsecured wallets.
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