Why do you have a wallet? To keep your cash safe instead of having it sit around in your pockets right? Well, the same logic applies to your cryptocurrency. If you want to keep your desired Bitcoin, Ethereum, Ripple, etc. safe, it’s advised that you consider a cryptocurrency wallet app.
Learn how to choose the best wallet for you, as well as what a cryptocurrency wallet is and does.
What is a cryptocurrency wallet?
A crypto wallet allows you to store and use your cryptocurrency. It’s kept secure through the use of public and private keys. It’s like your email address and password – you give your public key to someone you want to send you currency, and you keep your private key secret and only use it when you want to send coins to someone. Your cryptocurrency wallet app should provide you with these. If they don’t, be wary because without your private key you have no access to your crypto coins.
Hot or cold?
There are basically two kinds wallet storage. The first one is hot storage, which generally refers to storage on a device that is always connected to the internet. An example of this is a smartphone or desktop app. Cold storage, refers to offline hardware that only connects to the internet when you make a transaction.
The first thing you need to decide is which one of these you will select. Hot storage works best for those who always want to have access to their cryptocurrency, it operates across many kinds of devices. Like a regular wallet, you carry it with you so you can access funds whenever you want, while keeping the rest in a safe place.
Second is cold storage, this is offline hardware that stores your private key and keeps it safe for you. When you want to make a transaction, you connect the hardware to your computer and it signs your transactions for you and broadcasts it to the network.
Things to consider when choosing your wallet
- Security: do your research, if you are using a hot wallet make sure it’s secure. Read reviews, ask around and make absolutely sure it is a completely legitimate platform.
- Cost: Not all crypto wallets are free. Some include sign up and transaction fees. Make sure you understand the costs involved when selecting your chosen wallet. If you want to use cold storage you will need to buy hardware wallet, as with hot storage make sure to do your research and buy the right one for you.
- What do you need the wallet for: Are you investing? Using it for online payments? Trading? The wallet you choose needs to be appropriate for what you use it for. If you want to buy a large amount of cryptocurrency as an investment, then cold storage is ideal. If you want it for trading and everyday transactions, then hot storage works better.
Now that you know what to look for it’s time to buy your cryptocurrency and join the crypto revolution.
Whatever your storage needs, TREZOR has you covered. It’s the most trusted cryptocurrency wallet on the market.