Before you can begin buying and selling cryptocurrencies, you need a cryptocurrency wallet. The wallet – as the name suggests – acts as a storage for all of your cryptocurrency keys. Anyone can insert new keys – money – into your cryptocurrency wallet, and you can send those keys to other wallets just as easily.
Picking a suitable cryptocurrency wallet is important for a number of reasons. The safety of your coins depends on how secure the wallet is. The same is true with the types of coins you can store in the wallet. To help you select the right cryptocurrency wallet to use, we are going to discuss some of the aspects to consider in this article.
Facts you need to consider while choosing a cryptocurrency wallet
Know the Types
There are several types of cryptocurrency wallets to choose from, starting with the most rudimentary of them all: paper wallets. Paper wallets are printouts of your cryptocurrency keys in the form of QR codes. You basically store your keys offline for maximum security. Inconvenience is the price you pay for that level of security.
Software wallets, on the other hand, store keys in the cloud. There is a lot to choose from too, including services that include a solid crypto tracker for easy monitoring of coin prices. That last feature is a huge plus if you are using cryptocurrency as an investment instrument.
Other types of cryptocurrency wallets are just as interesting. Hardware wallets store your keys in a USB drive-like hardware. Mobile wallets specifically use mobile phones – and native apps designed for them – to store keys for your coins. Choosing between these different types is a matter of finding the type of wallet you are comfortable with the most.
The next big aspect to consider when choosing a cryptocurrency wallet is security. The last thing you want is to be reckless with is the safety of your cryptocurrency keys. Once the keys are stolen and the currency transferred to another account, it is virtually impossible to recover them; after all, that’s how blockchain is designed by nature.
Security layers such as additional encryption, multi-sig or multi-factor authorization, and strong use of passwords are very important. You want to make sure that the wallet you use is protected using some – if not all – of these measures so that you can sleep well at night. The same is true with having multiple backups of your wallet for easy recovery of crypto keys.
Do a Reputation Check
Many wallet services get hacked at some point in the history of cryptocurrency, but that doesn’t mean they need to be avoided entirely. What you want to look into is how wallet service providers handle cases of crypto keys theft and how they protect the interest of their users.
Reputation check is a must in today’s cryptocurrency landscape. You want to work with service providers with proven reliability for the safety of your crypto keys. You can even go a step further and get in touch with the service providers directly. Use their customer support hotlines to ask questions and see how comfortable you are with their answers.
That’s the last piece of the puzzle actually; comfort level. Sign up for the Bitcoin cryptocurrency wallet only when you are completely comfortable with the services, its security, and its support for the cryptocurrencies you want to buy. Do a test run before pooling all of your coins in one wallet.
By taking these major factors into considerations, choosing the right cryptocurrency wallet becomes easier. You already know what to look for from a wallet service and the kind of features you expect for maximum convenience. Pick one wallet service that you are comfortable with the most and begin collecting cryptocurrency keys like a pro.