Crypto Wallets

From Cryptocurrency Review

A Cryptocurrency Wallet is an application that allows you to store your cryptocurrency. There are many kinds of wallets like desktop, mobile, paper, or hardware wallets. Cryptocurrency exchanges offer some sort of wallet service, but this is not the safest method for storing coins long term. Cryptocurrency wallets are important because they allow you to send and receive cryptocurrencies via the blockchain public ledger. Without them, transactions cannot be made. You can also browse for gaining proper knowledge about crypto trading.

Let’s look at the different types of Cryptocurrency Wallets available:

Desktop/Downloaded/Software Wallets:

These wallets store your private keys on your computer in a software program such as a .exe file (Windows) or QT (Mac). They give complete control over your Cryptocurrency and are easy to use. However, Desktop wallets can be hacked or get a virus that allows the hackers to take your Cryptocurrencies. They also depend on having a very strong computer security system in place, as well as regular backups of the wallet file to ensure it is not lost.

Mobile/App Wallets:

 These allow you to access your Cryptocurrency using an app on your smartphone/tablet. Mobile wallets are very convenient because they can be used anywhere allowing fast transactions with Cryptocurrencies. However, they give you less control than Desktop wallets do and often cost money for you to download them (though some Cryptocurrency enthusiasts have developed free versions). You should always check before downloading any Cryptocurrency wallet that it is legitimate and secure. Cryptocurrency exchanges will usually provide their own mobile wallets, but this is for convenience only – do not store large amounts of Cryptocurrencies in Cryptocurrency exchange mobile wallets.

Hardware/Paper Wallets:

These are considered the most secure Cryptocurrency storage because your Cryptocurrencies are stored offline. Hardware wallets use USB drives to store your Cryptocurrencies offline by keeping them on a dedicated hardware device like a USB key. They offer the highest levels of security possible, as well as being very convenient to use. However, they can be quite expensive ($30-60+) depending on the model you purchase and require some technical knowledge to set up (the safest method is “cold storage” where the Cryptocurrency is transferred offline).

Paper wallets are made by writing down a Cryptocurrency public address and the private key that corresponds to that Cryptocurrency on a piece of paper. The public address and private keys can then be printed out or kept on a home computer until needed. Paper wallets are free and offer high levels of security, but they cannot be used for transactions – you must import your Cryptocurrency into a software wallet first. This requires great care as there is no way to reverse mistakes when importing Cryptocurrency private keys (it will either send coins or it won’t – if it doesn’t you may have lost those coins forever).

You should never give your Private Key to anyone else as this would allow them to access your Cryptocurrency – anyone who knows your private key can access your Cryptocurrency.

Here are some general rules for Cryptocurrency Wallet safety:

1) Never reveal the Cryptocurrency’s private keys to anyone else, unless you intend to give them control of those Cryptocurrencies (this is not recommended).

2) Use different Cryptocurrencies addresses every time you make a transaction (or use unique address short-cuts like “3”). This will make it harder for an outside source to track transactions and amounts.

3) Make sure software wallets are legitimate before downloading/installing them. Check reviews from other users before downloading any wallet program. Stay away from programs advertised on suspicious websites or pop-ups ads as they may contain a virus or Cryptocurrency stealing malware.

4) Cryptocurrencies getting sent to a Cryptocurrencies address where the private key is unknown will be lost forever – make sure you have 2 forms of Cryptocurrency wallet security (e.g Cryptocurrency software and hardware wallets).

5) Keep all Cryptocurrencies in a Cryptocurrency wallet on your own computer only. If it’s not there, then no one else can steal it from you. Don’t store them on Cryptocurrency exchanges unless you plan to trade them again soon – this is considered high risk as they are just a target for hackers/thieves who want your Cryptocurrencies. They offer almost 0 levels of security so they should only be used as an online Cryptocurrency wallet (and never connected to your computer when using their services unless you’re withdrawing Cryptocurrencies – and even then it’s not recommended).

6) Keep multiple Cryptocurrencies wallets in case one gets lost or damaged. You should back them up regularly and/or print out the Cryptocurrencies addresses and private keys for storage in a Cryptocurrency safe.