What are the main reasons for holding a Crypto wallet?
This is what a Bitcoin wallet is used for:
- Send / receive Cryptocurrency
- Store coins
- Synchronize Blockchain with all of the networks nodes.
Creating a free wallet can be very simple!
Just open an account in a website, and create a free wallet.
While this is the most simple way, it is not necessarily the most secure one.
Let’s go over the the various types of the Crypto wallet:
There are several various types of wallets –
- A hardware wallet
- A paper wallet
- A web wallet – desktop or mobile
We will review them one by one:
A hardware wallet is a physical electronic device that is regarded to be the most secure way of storing Cryptocurrency.
To perform actions in Cryptocurrency, you should connect it to your computer or your smartphone..
Among the most popular Bitcoin hardware wallets are:
Although we listed these 3 wallet brands, this market is rapidly changing and our recommendation would be as always:
Do your own investigation.
Ask for recommendations in forums, Reddit etc.
Do I need a bitcoin wallet? well, yes you do!
Hardware wallets are the preferred choice in terms of security. It is the most secure, reliable, and easy to use considering the other alternatives.
It is less vulnerable to Cryptocurrency hackers.
Note that the above is true, as long as you hold your private keys in a secure offline environment!
This is really important.
A paper wallet is actually – holding your public address and private addres in the form of QR code.
What are public and private addresses?
Public address is used to receive Cryptocurrency, and the private address is used to transfer Cryptocurrency that is stored at that address.
You should keep the paper wallet in a secured place so it is not revealed nor lost.
Paper wallets are generated on services like Bitaddress.com, and printed out.
Mobile App Wallets
A mobile Cryptocurrency wallet is necessary for people who use Bitcoins frequently.
These are many software apps available, that enable Crypto transactions.
A mobile app holds your private keys, and enables Crypto payments from your phone.
It is a very convenient and easy to use solution for Bitcoin transactions, however a less secure solution among existing wallets, and vulnerable to hackers.
Web wallets are Cryptocurrency wallets that run on internet connected devices like a computer, mobile phone, or tablet.
Thy are less secure than Hardware wallets and you should be very careful.
Hot wallets are like your physical wallets;
It’s ok to store some cash there, best not to have your life savings in your physical wallet. Same for the web wallets:
Use them to perform some transactions or store some Crypto, but for large sums better use a hardware wallet.
So hot wallets are easy to use for frequent / small payments.
Less suitable to store lots of Cryptocurrency.
Opening a Bitcoin Wallet Account
Do I need a Bitcoin wallet? Yes. you need it to send, receive and store Cryptocurrency.
Now that we’ve answered that:
How do I open a web wallet account?
Opening a Crypto wallet is a fairly simple process!
All you need to do is to choose your preferred wallet (we recommend checking in forums and reading reviews).
Example – coinbase.org, and sign up.
In many sites you can also create multiple wallets.
Multiple wallets allow you to organize your Cryptocurrency, expenses and savings.