Crypto Wallets, The Best Way to Protect your Cryptocurrencies
Cryptocurrency is just like a fiat currency, which are essential to be secured and stored. Just like our physical wallets that stores money, cryptocurrencies are even stored in wallets called Crypto wallets.
Crypto wallet is a digital wallet, which is used to receive, send and store different types of cryptocurrencies in a secure manner. Usually, the crypto wallets store the currency in the form of digital codes i.e. Public and Private keys internally.
Public key is visible to everybody and is typically used by people to send money, whereas private key is used by the owner itself to send money. So, here Private Key plays a vital role in securing the currencies and hence the loss of Private Key can be a huge loss to the wallet owner.
Things To Consider While Obtaining a Crypto Wallet
As Crypto Wallet is the only place to store the digital currency, certain things to be considered before opting for a Wallet-
Reviews and Reputation: It is always good to go for a wallet that comprises good reputation and reviews. The pros and cons of any crypto wallet can be known by checking out the customer feedbacks and features.
Software Solutions: It’s not that recommended to opt for software solutions that carry malwares under the front of wallets. Crypto wallets of that kind are much prone to be infiltrated and attacked. The best way to avoid this kind of hitches is to choose reputed wallet providers.
Best Practice: This is the most prominent and vital principle to be considered in order to maintain the crypto wallets safe. Good to have a backup of your private keys and also recommended to have an extra layer of security like Google authentication.
Types of Wallets
Many wallets are available in the market and choosing one in that completely based on your purpose and requirement.
Hot wallets: Hot wallets are like cash in your pocket, which can be accessible through a mobile app or a web portal. It has a greater accessibility and facilitates a friendly environment for trading and other transactions. The biggest drawback of this wallet is, it prone to more vulnerable attacks.
Cold Wallets: Cold wallets are just similar to your saving accounts, which are more secure and rigid to access. When compared to hot wallets, these are less prone to attacks as they are maintained offline. Though the accessibility of making transactions is confined, it can be meant for long-time holding as it reduces the chance of currency loss.
Additionally, there are different kinds of wallets that include-
1. Hardware Wallets:
These wallets are considered as secure wallets for storing cryptocurrency. The accessibility is so easy but comparatively less-friendly to web or desktop wallets. These wallets look like a USB drive, which can store numerous cryptocurrencies offline.
Ex: Bitbox, Trezor and KeepKey
2. Software Wallets:
Software Wallets are considered to be Hot wallets as they are used with the internet. These wallets can be stored on various devices like a computer, mobile phones etc. and therefore provide easy accessibility to tokens. There are different types of software wallets:
– Desktop Wallets: Desktop wallets are the most secured options accessible for storing cryptocurrency. It is retrieved through software installed on the devices and the private key is kept locally.
– Mobile Wallets: Mobile wallets are very handy to be used and come with great security features. Quick transactions can be performed through QR codes.
– Online Web Wallets: These wallets need internet connectivity for operations and works through internet only. These wallets are also mentioned as “cloud wallets” as numerous third-party wallets let their software solutions to be used over cloud. The major drawback here is that the private key is stored on centralized server of the cloud.
– Multi-Signature Wallets: These wallets make use of many keys to operate. It lessens the probabilities of attacks as it is more difficult to get the access to multiple private keys. One more advantage is that if one private key is lost; the alternative key might help in getting the backup. The major intent in arraying multiple keys here is:
• Toting an extra layer of safety to the wallet and averting the probable attacks from the hackers.
• Making a wallet that can be used by one or more users.
These wallets deliver the best way to keep the cryptocurrencies totally in undigitized manner or in hard copy format. Paper Wallets can be called as cold storage wallets for tokens. The complete process of using these crypto wallets encompasses printing out the private and public keys as QR codes, which can be scanned for doing future transactions, storing it safely.
- Best use of Blockchain Technology in Different Industries
- Top Successful ICOs, Worth To Have a Glance
- Top 5 Reasons to Attend a Conference on Blockchain Technology
- Crypto Wallets, The Best Way to Protect your Cryptocurrencies
- Significance of Blockchain Technology in Banking
- Reasons To Give More Importance To Blockchain Technology in 2018
- Blockchain Could Change The Way Of Doing Business