You’ve bought cryptocurrency but where do you keep it?
So, you’re happy with the amount of cryptocurrency you have right now but you’re not ready to buy or sell them just yet. So what other option do you have? You can store your cryptocurrency in a wallet.
What is a cryptocurrency wallet?
It’s a digital wallet that allows you to store various cryptocurrencies – so you can store Bitcoin, Ethereum, Litecoin and Ripple. With the wallet, you can send and receive cryptocurrencies using public and private keys.
Public and private keys
If you need to receive payment, a user will use an address known as the public key. To send someone a payment, you will be using the private key. It’s vital that you NEVER lose your private key details because people may have access to your Bitcoins. How do you safeguard your private key? Using hot or cold storage.
- Hot storage: This usually refers to a wallet that is stored on a device that is connected to the internet. Mobile and desktop wallet apps would be an example of this.
- Cold storage: This refers to offline apps and is best suited to those looking to store the cryptocurrency for the long-term.
Hot storage wallets are great because you can access your funds easily and offers support for all types of devices. Cold storage wallets allow you to hold large amounts over a long period of time. Decide what’s best for your needs when you select a hot or cold storage wallet.
What to consider when deciding on a cryptocurrency wallet
What should you look for in a desired digital wallet? Does it actually matter? Fact is, it actually does. Let’s use a physical wallet as an example. When you’re out shopping for your new wallet, what do you look for? Well, it will be how much it costs and its design. It also needs to be secure because you don’t want your coins or notes slipping out.
These are similar factors you need to consider when looking for the perfect digital wallet. You need to find out the cost – some apps are free so you need to search for a wallet that best suits your price. Also ensure that the security is top notch. Like the physical wallet, no notes or coins need to go missing. The mobility is another factor that needs consideration. The ideal digital wallet is easy to access anytime and wherever you are.
Have you ever stood in line at the supermarket and struggled to take the coins or cards out of your wallet because the design was just not the greatest? Well, believe it or not, a digital wallet needs to be well-designed and rate high on the user-friendly scale.
A good cryptocurrency goes a long way and you need to select one that has all the above traits.
Binance is a globally renowned cryptocurrency exchange. The platform is easy to use, secure, stable and can work on all devices. It supports multiple coins – BTC, ETH, LTC and BNB.
The platform has a high-performance algorithm, processing 1.4 million orders per second, making it one of the fastest exchanges in the world.
After first establishing itself 5 months ago, Binance already boasts 5 million users. This surge in growth proves that it is the ideal cryptocurrency exchange.