If you are thinking of randomly selecting any crypto wallet you find, you will be doing it the wrong way. And it could be the worst decision you will ever make that could result in loss of coins. A suggestion from a friend is not good either.
It’s important to seek knowledge first before settling for a wallet. Remember your wallet is where your public keys and private keys reside and that’s the jackpot in losing all your crypto’s.
Now, there are a number of issues you will need to put in mind before choosing your crypto wallet
Different Types Of Crypto Wallets
There are three kinds of wallet you can choose from; software, hardware and a paper wallet. Software wallets can be desktop, online or mobile.
The desktop wallets are installed on a PC and are only accessed from the computer to which it was downloaded. They offer among the best security levels but on the downside, if your computer gets a virus or is hacked, you can lose your funds. On the other hand is online wallets which are accessible on any computing device anywhere. They offer convenience but are prone to hacking attacks and theft because they are third-party controlled. Mobile wallets are phone apps and can be used anywhere.
As for hardware wallets, they store the user’s private keys on hardware devices. They are usually offline and therefore guarantee security. That is unless the hardware is not physically stolen. Being offline however doesn’t mean they can’t transact online, simply plug in the devices to an internet-enabled computer, enter the password and transact.
Paper wallets refer to printouts of your public and private keys or software that can securely generate keys. You will find usage quite straightforward. Transfer funds from your software wallet to the shown address in your paper wallet and vice versa for withdrawal.
Security In Crypto Wallets
Security is the most important thing and its level varies depending on your wallet type and service provider.
It goes without saying that offline wallets are the most secure and web servers the riskiest environment for a cryptocurrency wallet. Online wallets are vulnerable to hacker exploitation and are different from offline wallets which cannot be hacked since they don’t rely on third-party security.
Although online wallets are the most vulnerable, they employ diligent security measures to prevent occurrences. Seek wallets with an update feature for latest enhancements in security and functions. Extra layers of securities also help a huge part. In general, look for a wallet that has a great reputation when it comes to security.
Multi-currency And Single Use Currency Wallets
It is common knowledge that wallets are in hundreds, each with distinct infrastructure and ecosystems. This being the case, you need to make a choice between a wallet that accommodates multi-currency use and a wallet that just suits the currency you intend to use.
Do You Seek Anonymity?
Some wallets are pseudonymous. Wallets aren’t tied to their user’s identity but transactions to some extent are public and permanent. Your wallet address could be traced back to you. If this is a concern, consider these types of wallets.