Take a look at the different types of wallet, their pros and cons and what features the best cryptocurrency wallet should have.
Take a look at the different types of wallet, their pros and cons and what features the best cryptocurrency wallet should have.
If you’ve recently acquired, or are looking to acquire, cryptocurrency, you need to know how best to store your funds. The answer is simple: get a cryptocurrency wallet. But with so many options available on the market, which is the best one to choose? Below, we take a look at the pros and cons of each so you can choose the best cryptocurrency wallet.
Hardware wallets are arguably the safest method of keeping your cryptocurrency safe. Your keys are generated offline which prevents hackers from compromising them. This shouldn’t be taken as sovereign, though – hardware wallets do have their flaws.
Web wallets are incredibly easy to set up and use. All that’s required is a WiFi connection and your login credentials. However, you need to be aware of the risk of cybercrime that’s inherent with storing their cryptocurrency in an online wallet. It could be victim of a DDOS attack, for example, which prevents you from accessing your funds as the server goes down. Best practice would be to never use a public WiFI connection to send, receive or deposit funds and this can be easily manipulated by a third-party.
Mobile wallets have similar benefits and risks to web wallets. Usually available through an App Store or Google Play store, you can download your wallet, complete the registration process and start using it within minutes. Your choice is provider is paramount, so choose a wallet that’s regulated and supported by a 24/7 customer support team. That way your funds stays safe and your questions will always be answered.
Desktop wallets are quite a popular choice because you can download them directly onto your computer. In doing so, you have the additional security of retaining control over the wallet since it is not hosted. However, you need to make periodic backups in case your computer malfunctions or becomes infected with a virus.
In the end, there are pros and cons to all types of cryptocurrency wallets. Truthfully, there is not a stand-out wallet that is entirely safe and secure. An ideal method to remedy this would be to utilise a combination of wallets, because when you spread your holdings you also spread and filter the amount of risk involved. Before you choose which wallet you want to use, be sure to do your own research and find the most suitable one for your needs.
If you want to find out more about wallets or protecting your cryptocurrency in general, read some more of our dedicated guides.