How to choose a wallet for cryptocurrency

What is a cryptocurrency wallet?

At its core, it is a program that stores private and public keys, and also interacts with various blockchains (block chains). That is, the cryptocurrency is stored in the wallet in the form of transaction records.

A wallet is needed to store, exchange and conduct transactions with digital currencies.

How is a cryptocurrency wallet replenished?

The sender transfers ownership of the crypto coins to you. To access them, the private key that is stored in your wallet must match the public key to which the digital currency is tied. After this happens, a record appears in the blockchain that the transaction has been completed.

What are cryptocurrency wallets?

Software

1. For desktop devices

This is a program that can be downloaded to a desktop computer or laptop. The wallet can only be accessed from the device where it is installed.

Desktop wallets are thin and thick. The first involves downloading only the program for the wallet, and information about transactions is stored on another server. In the case of the latter, both the program and the blockchain are downloaded to the computer.

2. For mobile devices

They work the same way as for PC wallets, except that you can always carry your smartphone or tablet with you. They are considered quite vulnerable: they are often hacked.

3. Online wallets

They work in the cloud or on certain web resources (for example, cryptocurrency exchanges), and are accessible from any device connected to the Internet.

Hardware

These are cryptocurrency wallets where transactions are made online, but private keys are stored on a physical medium (for example, on a USB flash drive). Using them is simple: you need to connect the storage medium to a computer with Internet access, enter the PIN-code and perform the necessary actions.

Paper

They are considered the most secure. They are generated using a special program. Private and public keys are printed on paper - in the form of a QR code or a set of numbers and letters. In order to perform some manipulations with the wallet, you need to scan the code or enter the keys yourself.

Also, cryptocurrency wallets are divided into:

Multi-currency and supporting transactions with only one digital currency.
"Hot" (online wallets that make it possible to quickly make transactions) and "cold" (offline wallets).

How to choose the right cryptocurrency wallet?

It all depends on what goal the crypto investor is pursuing. If we are talking exclusively about safe storage, then software and hardware wallets are suitable. Hardware wallets are more secure because they are not subject to the risks of hacking and viruses. Among them are Ledger Wallet and Trezor. Cryptonator and Blockchain are also the most trusted by investors. These wallets allow you to securely store funds, but you will not be able to quickly dispose of them.

For those who need to quickly and mobilely manage their available cryptocurrency, wallets on popular cryptocurrency exchanges such as Bittrex and Coinbase are suitable. The main advantage of such storage is the ability to work with dozens of cryptoinstruments with just one account. Exchanges make it possible to transfer, change, buy and sell any cryptocurrency at any time of the day.

Image

Sergey Alexandrovich Representative of the t.me/DeCenter community.

First of all, you should pay attention to safety. Do not forget that this is a fairly young financial market, and many do not have enough knowledge to save their funds.

Last year, hackers stole over $ 1.2 billion in the cryptocurrency market. Therefore, if you have any significant amount of cryptocurrency, take care of its safety first.

A bit of theory using Bitcoin as an example. Each bitcoin wallet has two keys - private and public. The first is stored only by the owner, it is necessary to confirm the ownership of the wallet and conduct transactions. The second key - public - is essentially an address to which other users can transfer cryptocurrency. Thus, special attention should be paid to the safety of the first key.

There is only one way to restore a private key if it is lost - using a seed phrase. This is a combination of 12 words (in some cases - 18 or 24), which are given to the user when creating a wallet. They are advised to remember or write down and store them in a safe place: for example, in case you lose the device on which you stored your cryptocurrency.

Some applications and services store the private key in encrypted form on their servers, others on your device. A private key can be created and stored even offline, without an Internet connection. Here you can read instructions on how to create a paper wallet. Handled properly, this is essentially one of the safest ways to store cryptocurrencies.

Image

Dmitry Rumyantsev

When choosing a cryptocurrency wallet, you need to pay attention to the following points.
- Anonymity during verification. Everyone has their own requirements for identity documents.
- Reliability of protection against hacking, data safety.
- Convenience and functionality of use. At this point, I pay attention to the speed of operations, a user-friendly interface.
- Multicurrency.
Top 5 cryptocurrency wallets, according to experts

Image

Sergey Alexandrovich Representative of the t.me/DeCenter community.

1. Trezor

One of the market leaders, a secure hardware wallet with a user-friendly interface. The private key is generated inside a special device, the data on which is encrypted. The only drawback of this wallet is the price, so it is usually recommended only for professionals or those with significant savings. Works with Bitcoin, Litecoin, DASH, Zcash, Bitcoin Cash, Ethereum, Ethereum Classic, and ERC20.

Trezor →

2. Blockchain.info

An excellent and very popular wallet with a focus on convenience. Private keys are stored on the servers of the wallet, which, on the one hand, makes it less secure, and on the other hand, increases the usability. Regardless of the private key and seed phrase, you can log in at any time using your login and password, gaining access to your coins anywhere in the world.

Blockchain.info →

3. Bread Wallet

The main difference from the previous wallet is the increased security. In this case, the private keys from the wallet are stored directly on your device.

Bread Wallet →

4. Copay

Another fairly easy-to-use, and most importantly, multi-platform wallet. It has versions for iOS, Android, Mac, Windows, Linux, even as a browser extension.

Copay →

5. Electrum

One of the most functional and convenient PC wallets. True, I would definitely not store cryptocurrency, especially large volumes, on a Windows PC (and even without an antivirus, as often happens).

Electrum →

Image

Dmitry Rumyantsev

1. Enjin Wallet

Mobile wallet for Ethereum, Litcoin, Bitcoin, Enjin. Available for Android and iOS. Has a smart user interface that takes into account the specific needs of the client.

The wallet uses a number of innovative developments to improve security, in particular - Enjin Secure Keyboard, the rule of two encryptions and other features. Available in 31 languages.

Enjin Wallet comes with a unique security keyboard that keeps no history and leaves no traces or passwords to maintain complete account privacy. The wallet does not ask for personal information to open an account, which guarantees complete anonymity.

Enjin Wallet →

2. Trezor Wallet

A Bitcoin wallet designed to help users save their cryptocurrency and transact offline using a small display. That is why all operations using Trezor are completely safe.

Interacting with the wallet via the web interface is intuitive. Trezor has the same capabilities to work with as most hardware wallets. You can view transaction history, receive and send tokens, and send or verify a signed message. You can work with the wallet through the web browser interface, as well as using a number of third-party applications.

Trezor Wallet →

3. Coinomi

A mobile wallet designed to store several cryptocurrencies, including the most popular ones - Bitcoin and Ethereum. The wallet has an intuitive interface. The built-in exchange function allows you to quickly and easily trade through your wallet using the integrated currency exchange.

The developers have made a special emphasis on privacy of use. Supports various languages, including English, Russian and Chinese.

The wallet is currently only available for Android, but the developers have announced that a version is expected for iOS and desktops running Windows, macOS and Linux. Coinomi is completely free to use.

Coinomi →

4. Exodus

A multi-currency wallet that has a simple and convenient user interface. The wallet is installed on a computer and is available for macOS, Linux and Windows operating systems.

Exodus Wallet supports 15 major cryptocurrencies, it is very convenient to track their rates in relation to each other. The dollar equivalent is indicated under the name of each cryptocurrency.

The wallet has another useful function - internal conversion (the function of exchanging cryptocurrencies within the wallet). True, the service charges a commission for such operations.

The backup wizard allows you to keep your wallet safe and ready for future use.

Exodus →

5. Trust Wallet

A wallet for Ethereum cryptocurrency tokens and other Ethereum-based tokens. Sharpened for use on mobile devices, works on iOS and Android, has an open source.

It features simple installation and affordable functionality, which does not require additional skills and abilities from the user. Trust Wallet has the ability to buy on exchanges directly through the wallet (although there are only three exchanges to choose from so far).

Trust Wallet →