The Key Considerations for Choosing the Right Wallet for Bitcoin and Cryptocurrency
The Leading Cryptocurrency Wallet Options and How to Make A Choice?
There are too many wallets for Bitcoin and several other cryptocurrencies, but the characteristics and the corresponding advantages and disadvantages of them differ a lot. This is why you need to know about the various e-wallets options and their pros and cons for storing cryptocurrencies.
How and from where Bitcoins are controlled?
There are too many Bitcoin wallets to choose from. From a desktop or mobile wallets to hardware or software-based wallets to paper wallets, there are several choices. In spite of these distinctions, the main feature of wallets is how the bitcoins are stored and controlled.
As per this point of view, we can have two types of Bitcoin wallets, respectively custodial wallets or wallets relying on services for managing the keys and non-custodial wallets or the self-controlled ones. While in the first case, one actually enjoys just a right to access the Bitcoin wallets handled by a third party and in the second case you fully own the Bitcoin wallet.
Mobile Phone Wallets
These are mobile app-based wallets and there are several popular options in the market now. The most popular and leading three wallet apps across platforms include Mycelium, Cryptonator, and Copay. Though all of them are powerful enough, they have certain advantages and disadvantages as well. Compared to web wallets, these wallets are considered much more secure.
Web wallets are considered less secure since with this option users never have access to their own private keys. This is why these wallets are seen as just a temporary way of moving cryptocurrencies from between two places. The bad thing about web wallets is that if the server is hacked, the users can lose their hard-earned cryptocurrencies. In the recent past, two major platforms experienced such vulnerabilities.
Paper wallets are considered as the safest way of storing cryptocurrency. These wallets are nothing but an offline way of storing a cryptocurrency. It is literally like printing the QR codes representing the public and private keys to have your control over the cryptocurrencies.
But, paper wallets cannot be ideal for everybody. For people trading or transacting daily or once in a week, will find managing paper-based wallets very difficult for management. The paper wallet is ideal as the investment option for cryptocurrency investors.
Software cryptocurrency wallets work much like the web-based wallets as they remain installed in a computer. Since often computers remain internet-connected, they are still vulnerable to remote hacks. But for trading cryptocurrency in low volumes, the desktop-based software wallets can be an ideal option.
As of now, Electron remains to be the most popular desktop-based software Bitcoin wallet that can be downloaded for use across Windows, Mac OS, and Linux platforms. Though it comes as the most popular software wallet, it remains to be a technical solution.
Coming to the advantages, software wallets such as Electrum offers fee adjustment settings that help traders to confirm transactions by opting for a different transaction fee.there is also easy to use wallets like Exodus that allows exchanges of multiple coins including Bitcoin, Ethereum, Dogecoin, Litecoin, and Dash. This wallet also helps in managing the keys and presenting investment through an easy-to-understand customisable chart.
In the last analysis, Software-based desktop wallets are not ideal for all investors and it is good if you only hold a large number of cryptocurrencies. Since internet connected wallets are always vulnerable to security threats, desktop wallets are not ideal for rigorous cryptocurrency investors.
Hardware wallets are considered to be the safest way to keep cryptocurrency investments. As known to be the “cold storage”, such storage option remains offline and thus offers the most secure way to store digital coins. Unlike paper wallets, it comes with inbuilt security. Looking like a USB flash drive it offers unmatched security since without the password nobody can access it.
On the other hand, hardware wallets can give you nightmares if you lose it. In case of loss, all the cryptocurrencies are lost. If the hardware becomes defective or corrupt, again you have no way to retrieve the currencies. Since cryptocurrency is gaining popularity, many robbers these days are stealing such wallets from customers.
These wallets are also expensive options because of the inbuilt security options. Hardware wallets can only be a good choice for investors if you can safely keep it inside a deposit box. The only risk factor is losing it or damaging it or forgetting the code to access the same.
Trezor wallet has emerged as a special kind of hardware wallet which is popular among many investors for a number of reasons. It comes with fully damage proof build and hyper-secure technology. Supported by all major platforms including Windows, Linux and Max, it is the ideal wallet for cold storage cryptocurrency investment.
Trezor hardware wallet comes with two-factor authentication besides an app for managing password and ERC-20 tokens for the wallet device. The wallet device supports a whole array of leading cryptocurrency coins including Dash, Bitcoin, and Ether.
The wallet is extremely easy to use with the USB adaptor plugin. It can easily be connected through the computer and can be reset by using the software. Comprehensive control, security and absolute peace of mind make this wallet so popular among investors. Most importantly, it comes as a tiny device that can be hidden right within the closed fist.
Choosing the best cryptocurrency wallet can be a little confusing since there are too many credible options. Moreover, the choice also depends upon the level of security you need, the duration of holding and the ease of use. Every type of wallet has its pros and cons. The hardware wallets seem to be the best options for most rigorous cryptocurrency investors.
Author Bio: Atman Rathod is the Co-founder at CMARIX TechnoLabs Pvt. Ltd., a leading web and mobile app development company with 13+ years of experience. He loves to write about technology, startups, entrepreneurship and business. His creative abilities, academic track record and leadership skills made him one of the key industry influencers as well.
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