A cryptocurrency wallet is the first step for the operation with cryptocurrencies, because if you do not have one, you can not receive, store or spend them.
Security as a priority
In the world of cryptocurrencies, security is one of the first things to be taken very seriously. It is important that users and those interested in digital currency understand their options and the importance of each of them.
A cryptocurrency wallet is the first step for the operation with cryptocurrencies, because if you do not have one, you can not receive, store or spend them. Wallets contain private keys, secret codes that allow the use of cryptocurrencies, although in reality they are not the ones that need to be stored and secured, but the private keys that give access to them.
Currently there are five basic types of cryptocurrency wallets. All of them have their own benefits and weaknesses but each serves a different purpose. These are:
- Cold Wallets: use keys created by a source that is not connected to the Internet, which adds an additional layer of security, “air space”, and allows these wallets to come in a hardware format.
- Hot Wallets: use keys generated by devices connected to the Internet, usually servers at the location of the wallet manufacturer or the exchange of the wallet. Although Internet connectivity makes hot wallets less safe than cold wallets, they are still the most popular currently in use.
- Decentralized Wallets: the cryptocurrency wallet does not have a centralized back-end to which you need to work when you want to sell, market or buy them. The user controls the keys of their wallet and that allows them to connect and generate a transaction with anyone, anywhere.
- Hosted Wallets: the opposite of decentralized, where the manufacturer of the cryptocurrency wallet or exchange controls and stores your keys. They offer greater security than the user provides, but also store thousands of user passwords, which means that they are exposed to hackers having more interest in them than they would in a single user.
- Paper Wallets: they are reduced to printed paper sheets that register the public and private cryptographic keys. To use a paper wallet, simply transfer the digital currency to a public address that appears in the user’s paper wallet. To use the cryptocurrency simply start a transfer and re-print the wallet.
The most popular wallets
The most sought after feature in the cryptocurrency wallet is precisely the security that these can offer the user, and currently the most popular are those that allow more than a single cryptocurrency. As for the security that these wallets offer, the most popular can be the following:
- Exodus: combines support for a variety of cryptocurrencies such as bitcoin, Ethereum, Litecoin and more, with strong privacy and security features. It is completely free and has the integrated ShapeShift functionality to facilitate the exchange between several cryptocurrencies.
- Xapo: noted for its strong security measures and for being focused on storing small amounts of Bitcoin. It allows you to buy and sell bitcoins because it also serves as an exchange and as an extra point, it stands out because it offers the possibility of acquiring a debit card.
- Electrum: its main feature is that it runs on the desktop of a computer. With Electrum, the private keys remain encrypted and secure in the computer and also allows you to export them and use them in any other Bitcoin client.
- MyCelium: allows access to a wallet that is installed on your mobile device (Android and iOS) and with which you can send and receive bitcoins easily.
- Bitcoin Core: Bitcoin’s official desktop wallet, that gives you access to a simple desktop platform compatible with Windows, Linux and Mac from which bitcoins can be exchanged.
- Bitpay: can be run from a computer (Windows, Linux or Mac) or mobile device (iOS or Android). It also offers a VISA card with which you can convert the bitcoins in dollars and pay at any establishment.
- BitGo: backed by several security systems that make it one of the most complete wallet systems in the market, offering the user total control of the wallet complex and giving the option to turn it into a cold wallet. It is one of the best options that are offered in the market.
- Coinomi: it is characterized by being HD (Hierarchical Deterministic) and being available only on iOS and Android. Besides bitcoins, it accepts a lot of altcoins such as Ethereum, Ethereum Classic, Litecoin, etc.
- MyEtherWallet: definitely the best Ethereum wallet in the market. This wallet works online but is also fully compatible with physical wallets such as Jaxx, Trezor or Ledger Nano.
- Blockchain.info: an easy-to-use wallet with unlimited addresses, at the touch of a button a new address is created. It has features that increase the security of the wallet, such as establishing a second password to authorize transactions.
- Edge: It is the most efficient transfer of assets, since it allows to buy, sell and exchange cryptocurrencies at the whim of the user with a secure system based on a structured source code “without knowledge” so that the entire complex of assets and customers is entirely unknown.
Likewise, other wallets that offer excellent services for users and that also manage effective security protocols stand out. Some of these to highlight are:
- BRD: a mobile wallet system designed specifically to give the customer the availability to execute any type of operation from the palm of their hand. Simple and direct configuration for better user management and direct and indirect transparency, which keeps everything anonymous, efficient and reliable.
- Samourai: constantly updated to benefit the customer with the most complicated security structure in the market. Leaving the user in complete anonymity and able to monitor the assets with the constancy that each piece of information occurs during the process will be eliminated.
- Trezor: unlike the others, it is strictly designed to keep assets out of the network, within the reach of the customer’s hands and much more secure.