The idea of a universal cryptocurrency wallet is appealing; it would mean not having to have multiple wallets across multiple platforms in order to make trades across the entire crypto spectrum. However, no such wallet exists. With all the problems a universal cryptocurrency wallet would create, it’s unlikely that there will ever be one.
While there is no crypto wallet that stores every cryptocurrency, there are ones that are able to store most of the main and valuable ones.
The problem with universal cryptocurrency wallets
it’s nearly impossible to keep your assets safe. There’d be too many holes in the system, leaving it vulnerable to hacking and shutdowns. Creating such a wallet would require too many resources and the upkeep would be incredibly difficult. Most wallets and exchanges, even the ones that support multiple coins, tend to support the most stable and valuable coins such as Bitcoin, Ether and Litecoin.
Another problem would be the idea of putting all your crypto eggs in one basket. If the system crashed, you would not just lose, say your Bitcoin, but every other type of coin you had. That would be catastrophic. This is why it’s financially safer to keep your cryptocurrencies in their respective crypto wallets. Much like with your fiat currency, splitting it up between multiple assets, investments and bank accounts is safer than keeping it all in one place.
What would be the benefits of this system?
The most obvious benefit would be not having to sign up to and download multiple wallets. All your coins would be accessible from the same place. However, the downsides of this have been discussed above, and the costs outweigh the benefits at this point. Another advantage would be the lack of transaction fees. When you trade currencies between wallets, you may have to pay fees from both sides for your wallet to facilitate the transfer. If all your crypto coins were hosted on one platform you would not have to pay fees.
There are wallets out there that can take multiple currencies and they are becoming more popular – some that are able to take almost 10 of the top trading currencies at once.
There are also wallets specifically for altcoins – more obscure, less valuable coins and these may be able to take more than one altcoin at a time. However, it’s likely to have stability issues.
If a sites goes down or is hacked, you lose everything at once. If you do manage to find a safe, secure, well created and well run multicoin wallet, then the benefits could be great.
We all love convenience, even if sometimes it means slightly compromising our safety, so it all comes down to how you personally feel about risk and how much faith you have in your wallet.
Whatever your storage needs, TREZOR has you covered. It’s the most trusted cryptocurrency wallet on the market.