If you are a cryptocurrency enthusiast, then you are acquainted with ways to protect your precious stash. Due to ever-changing cryptocurrency standards, trends, technologies, and values, it is daunting tracking your crypto assets. A most important consideration for digital asset investors, owners, and traders is the storage of accumulated treasures. Given this reason, it is imperative that you understand which cryptocurrency wallets suit your specific needs.
Cryptocurrency wallets come in different flavors including online, offline and hardware wallets. All of these approaches have their strong points as well as drawbacks.
So, read on to find out more about the best wallets for each approach.
Online Digital Wallets
Online wallets let crypto-asset holders store their stash in a location easily accessible from anywhere using any device. Typically, these wallets are linked to an online cryptocurrency exchange. In turn, they make trading in fiat currencies and other digital assets fast and a breeze. It is easy setting up an online wallet and most have a smartphone companion app. Online wallets have decent security features such as two-factor authentication or photo IDs.
Even so, they are not completely anonymous in comparison to other types of digital wallets. To top that, users often rely on third-party providers for technical support. In case an exchange is hacked, heavy traffic, or DDOS attacks you could lose your digital assets or be unable to access your currencies. Also, social engineers and hackers can steal your remotely stored identity and make off with your collection. This is why these types of wallets are recommended for those who are just starting in cryptocurrencies. Reputable examples in this category include MyEtherWallet, Blockchain, and Coinbase.
Hardware wallets offer the most security and are ideal for those with large cryptocurrency fortunes. Excepting theft of a hardware wallet, it is practically impossible for hackers to access your fortune. Often, they consist of a hard drive installed with software or specially designed devices for storing cryptocurrencies. Hardware wallets are secured against the elements using fireproof safes. Also, these wallets can be connected to any computer for initiating real-world transactions. The contest between ledger vs trezor illustrates the demand for hardware wallets by crypto enthusiasts and purists.
Alternatively, known as “desktop wallets”, though some have mobile apps. An advantage of offline wallets is that you get to enjoy independence. Exchanges can fail to function for any number of reasons. Offline wallets let you retain control and access to your digital assets. For you to lose your stash, it requires that you be specifically hacked. Also, your cryptosphere identity is protected, as there is no sign-up or photo ID verification. Often, online digital wallets have companion mobile apps for seamless transfer of digital coins between users and real-world applications.
However, these wallets are not a 100% secure, malware and hackers can attack them too. Notable digital wallets in this category include Exodus, Electrum, Breadwallet, and Mycelium.
In summary, note that each digital wallet discusses above has its own cons and pros. so, before acquiring one it is imperative that you carefully consider these aspects. In addition, keep in mind the volume of cryptocurrency you own and your trading habits. Overall, as long as you are nagging in cryptocurrencies you need a place to store your stash. Hence, you should select a wallet depending on your unique circumstances.