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How do cryptocurrency wallets work?

How to choose the best cryptocurrency wallet

Discover the best cryptocurrency wallet for your circumstances, the different types available on the market and how they can be used.

There are a variety of options available on the market, but which is the best cryptocurrency wallet for your circumstances? The answer will often depend on what you need a cryptocurrency wallet for. Perhaps you only own a single cryptocurrency or perhaps you have a much wider portfolio. Whether you own Bitcoin or Dash, there will be a dedicated wallet just for you.

Whatever your choice, you will need a wallet to store, send and receive your digital currency.  Below, we take a look at the options available to you.

The best cryptocurrency wallets for single currencies

A cryptocurrency wallet is a digital wallet that uses cryptography to keep your funds secure. If you’re only holding or trading with a single cryptocurrency, such as Bitcoin or Ethereum, then you would be in no safer hands than choosing a dedicated wallet. Below are some examples of the best cryptocurrency wallets available on the market for the aforementioned cryptocurrencies.

Bitcoin

Bitcoin Core is the software that runs the entire Bitcoin network. A secure digital wallet is included in the software and it can be used to send and receive Bitcoin. Storing your Bitcoin in the wallet will allow users to contribute to the Bitcoin network by validating transactions and storing a copy of the blockchain.

Mycelium is a mobile only wallet and users are able to switch between Bitcoin and standard fiat currency. So essentially users are able to buy and sell Bitcoins for fiat. It can also accept Bitcoin stored on other wallets so can help if users are consolidating Bitcoins stored across multiple wallets.

Electrum is a desktop wallet and has been around since the very early days of Bitcoin. It is widely used by Bitcoin holders and its able to integrate with the major hardware wallets.

Ethereum

The Ledger Nano S is a hardware wallet that can be used to send or store your Ethereum. It is certified and secure, making it the best cryptocurrency wallet option for those concerned about cyber security threats.

MyEtherWallet (MEW) claims to be the original wallet for Ethereum. It is an easy-to-use, open-source platform that allows you to confidently send and swap ETH and other tokens.

The best cryptocurrency wallets for multi-currency users

If you own or intend to own a range of currencies then it makes sense to store them on a single wallet. Here are some of the most popular.

Jaxx Liberty was created in 2014 by Ethereum co-founder Anthony Diiorio. It supports many currencies including Bitcoin, Ethereum, Litecoin, Dash and Zcash, just to name a few. The wallet can be accessed via desktop and mobile devices that can be paired so transactions are up-to-date the next time a user switches between devices.

Coinomi is a trusted blockchain wallet that supports many cryptocurrencies and more than 1500 other blockchain assets.  It offers the broadest range of crypto, so will always have something for your needs.

Exodus is a desktop only wallet. The cryptocurrency exchange, ShapeShift is also integrated into Exodus facilitating easy trading. It supports Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Vertcoin plus Ethereum powered asset tokens.

The best hardware cryptocurrency wallets

Hardware cryptocurrency wallets are generally more expensive than software versions but users value the additional security that they bring. Here are some of the key ones:

Trezor is described as the original and most secure hardware wallet. It is a small device that can be connected to a computer. Created by SatoshiLabs it is the world’s first secure Bitcoin hardware wallet. These days it also supports other popular cryptocurrencies such as Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, Zcash and Ethereum powered tokens.

Ledger Blue is a handheld hardware wallet that features a 3.5-inch touchscreen and supports bluetooth and USB connectivity. It’s designed to run multiple companion apps to allow keys to be stored for a number of currencies. Compatible with desktop or mobile, it features two-step authentication.

KeepKey was launched in 2015. Its aim is to provide users with a totally secure wallet that allows them to generate and store an unlimited number of private keys.  It supports Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin, Dash, and Namecoin. To quote the company website, “Your assets are protected from hackers and thieves”.

To find out more about cryptocurrency wallets, how they work and how they keep your crypto funds protected, download this definitive guide. 

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