The Brief Guide That Makes Choosing the Best Crypto Wallet Simple
By 2025, the global blockchain market will grow by $39.17 billion, which makes this a hot topic. In fact, 51% of Americans bought cryptocurrency for the first time within the last year back in May 2021!
If you’re looking to get in on the action, then you’ll want to get a cryptocurrency wallet. That way, you can store your purchases safely.
Read on to see what’s available so you can choose the best crypto wallet for your needs.
Hot Storage Crypto Wallets
Many people use hot storage crypto wallets because they’re easier to get and handle. However, when compared to their cold storage counterparts, they’re less secure.
“Hot storage” means that these wallets are directly connected to the internet. Here are the types you can get.
Desktop wallets are accessible through your computer or laptop. This gives you complete control over your cryptos since you don’t have to deal with a third party.
If you choose this type of wallet, make sure you’ve got all the proper cybersecurity measures in place. It’s up to you to prevent hackers from stealing your crypto.
Mobile wallets are located on smartphones, which is great for those always on the go. You might want to consider this type of wallet if you need to make constant transactions.
Here, you’ll also need to make sure your phone is safe from hackers, or else you run the risk of losing everything you own.
A browser-based app is perhaps the most convenient type of hot storage crypto wallet. Once you’ve bought crypto from an online exchange, you can just store it directly in that exchange’s database. This means you can access it from both desktop and mobile.
However, as you might’ve already guessed, this is extremely insecure. Not only do you run the risk of the site being hacked, but there’s always the chance that the site will shut down without notice. In both cases, you’ll lose your cryptocurrencies.
Cold Storage Crypto Wallets
Cold storage crypto wallets aren’t connected to the internet at all. Also, they’re not digitally based; you’ll have something physical to hold onto. This makes it more secure than hot storage wallets.
Most companies make tiny, USB-sized cold storage wallets so you can carry them around easily. Whether you buy Terra Luna or Bitcoin, you can contain all types of cryptocurrencies securely.
However, if you lose the passphrases for your crypto wallet, you’ll lose everything on it forever. So make sure you keep these passphrases somewhere safe and secure.
Choose the Best Crypto Wallet
Now that you know what the types available are, you can pick the best crypto wallet for your needs. If you’ve got the budget for it, we’d suggest using at least 1 hot and 1 cold storage crypto wallet. That way, you can enjoy the best of both worlds.
If you want to learn more about blockchain technology, then read the rest of our blog page now.