Crypto wallets allow investors to keep cryptocurrencies and make crypto transactions. They are divided into software wallets and hardware wallets. Let’s discuss the basic idea of a crypto wallet and understand how it works.
What are crypto wallets?
What are and how do crypto wallets work? Their idea is analogous to standard wallets that you keep in your pocket when you go shopping. It’s a space where you can keep your digital currencies such as Ethereum or Bitcoin.
What can I keep in my wallet?
The function of a crypto wallet seems rather obvious but it doesn’t mean that you can keep all currencies in it. Some wallets allow you to hold only chosen coins, so before you buy it, you should read about the possible limitations first. It wouldn’t be nice to choose a wallet and realize that you can’t keep the currency you want.
Types of crypto wallets
Choosing a given currency is not the only serious decision you have to make when you’re getting ready to make your first crypto investment. You also should think twice before you pick your wallet. Although all of them allow you to store your digital coins, they vary in terms of fees, access conditions and a few other aspects. It’s similar to choosing a bank before opening your account.
Basically, crypto wallets are divided into software and hardware. The first type allows you to access your coins through your mobile device or a computer. A great advantage of a mobile wallet is that you can check and control it everywhere you are. Even when you’re in a shop or a bus, you can take out your smartphone and access your wallet. However, if you don’t want to bring your cryptocurrencies with you when you’re out, you can stick to a desktop crypto wallet. You can access it using special software installed on your PC or through a website.
Even though crypto investments are fully digital, you can use an external device where you keep your private keys. Since the data on it is accessible offline, it cannot be tracked down and stolen by hackers.
The most important criteria
Access: What kind of access is the most convenient for you? If your lifestyle requires you to constantly move from one place to another, you should use a mobile app, but home birds will be more satisfied with desktop access.
Security: Is a crypto wallet safe? Generally yes, but it wouldn’t hurt to have some additional protection. Read about security options that specific providers offer and choose the one that’ll make you feel confident.
Customer support: in the world of cryptocurrencies, everything is digital. It’s natural then that sometimes you’ll come across some technical difficulties. They can be stressful, so you deserve support from your service provider. If you want to learn about the level of customer support that a given wallet offers, look for reviews and opinions of people who’ve already tried them.
Fees: You use your crypto wallet to make transactions. Most of them are charged but the amount depends on which wallet you choose and what terms and conditions you accept.