First of all, what is a crypto wallet? A Crypto wallet is a digital wallet or software program that allows you to store, send, and receive cryptocurrencies. Crypto wallets come in many different forms, including online wallets, software wallets, hardware wallets, and paper wallets.
When choosing a crypto wallet or even investing in crypto, it’s important to consider what type of coin or trade you intend to use it for, as well as your own security needs. Also consider the ease of navigation of the wallet or app so you don’t hit a roadblock while using it. Usage and navigation of different crypto wallets can range from very simple to quite complex. There are wallets that require multi-factor authentication or switching from mobile to web before logins, transactions or high value purchases are made. There are others that simply need (and are compatible with) your phone’s biometric security like face ID or fingerprint. Whatever the case, these considerations will help guide you through making a well informed decision on what crypto wallet to use.
This article is a quick breakdown of what you should keep in mind when choosing a crypto wallet online, starting with the kind of crypto wallets there are and how to choose the right wallet for you.
Types of crypto wallets
Online wallets
Online wallets are the most convenient type of crypto wallets as they can be accessed from any device with an internet connection. All you need to do is create an account on the wallet provider’s website, submit documents for authentication, and in less than 48 hours (in most cases) you can start transacting. Keep in mind that wallets vary in ease of use, functionality, the coins they hold and other features.
However, because they are stored on the web, even the best online wallets are also the most vulnerable to hacks. If the website is compromised, your crypto trading and assets could be at risk. That’s why it’s important to choose a reputable provider with identity verification processes and platform security well implemented.
Mobile Wallets
Mobile wallets share similarities to online wallets, in terms of accessibility and ease of setting up. The only difference is that mobile wallets are solely compatible with mobile devices. They are convenient for on-the-go transactions.
On the flip side, mobile wallets are also vulnerable to hacks like any other online wallet. If your mobile device is lost or stolen, your funds could be at risk – especially when there is no multi-factor authentication set up.
Hardware Wallets:
Hardware wallets are the most secure type of wallet as they are offline and rarely vulnerable to hacking. They are like a USB stick that stores your private keys. To make a payment, you need to plug in the hardware wallet to your computer and confirm the transaction. However, hardware wallets can be lost or stolen. And if you forget your private key, you will not be able to access your funds.
Hardware storage devices like a Trezor One or Ledger Nano X are easy to set up. There are features that make these wallets great including: extensive portfolio tracking graphs & charts so users can view their values’ growth over time; easy access from any device including web browser or mobile phone via QR code – no physical coins required (though there’s still plenty out there available); and privacy protection by default because funds never leave owners’ accounts.
If you’re looking to optimize for availability and accessibility, online wallets may be the best choice for you. Let’s now guide you through choosing the right online crypto wallet.
Things to keep in mind when choosing the best online crypto wallet
1. Ease of use: An online crypto wallet that can be accessed from anywhere and from any device is ideal – especially for non-tech savvy people. Some users simply need a wallet to buy crypto and sell at any time and from any location. In this case, you should consider an online wallet that is easily accessible with any device, like a smartphone or PC. This also applies when you are looking to save your investments for the long term, but desire easy access and not the complexities of a hard wallet.
2. Security: Crypto wallets come with varying levels of security, from very basic to the most robust. If security is your most desired feature, seek crypto wallets with KYC for fraud detection. Crypto exchange platforms have been targets for cybercriminals who either want to steal users’ assets or even launder money. The implementation of KYC processes by lots of Virtual Asset Service Providers (VASPs), has boosted security and prevented fraudulent people from signing up or getting away with crypto theft. What is a crypto wallet without an extra layer of security? Hence, an ideal wallet or platform adds KYC to its system to verify its users, resulting in safety of their assets.
3. Supported cryptocurrencies: Not all wallets support all cryptocurrencies, it’s important to make sure that the wallet you choose supports the coins you wish to buy or are interested in. For example, there are wallets that can only save or let you transact in pop-coins like BTC and ETH. For example, you can find a BTC or ETH wallet that only allows you to save or transact with that particular coin. If you are however interested in alt-coins like DOGE, SOL or HOT, you will have to look out for platforms that have them listed.
4. Fees: Some wallets charge transaction fees or gas fees, while others don’t. It’s important to consider if you are willing to pay applicable fees and if you’ll get value for your money, before choosing a wallet. For instance, Ethereum (ETH) charges gas fees to successfully carry out a transaction. In non-peak periods, it could be about $11 and up to $25 in peak periods – regardless of amount of transaction. Others charge less,even those using similar kinds of technology. However, ETH holds more value than lots of other coins and buying a large value of ETH may be worth the fee.
Conclusion
With so many options out there, it can be tough to decide on an ideal crypto wallet online. The main priorities listed aids your resolve on what crypto wallet to use – security, fees, ease of use, and what cryptocurrency you would like to use the wallet for. Ensure you keep your passwords secret and your private key or recovery passphrase secure. This way, you can sleep with both eyes closed knowing you can always check on your assets at any time.
