Meta Description: Choosing the right crypto wallet represents a huge decision, and one that can be confusing to gamblers. Here are some considerations that should inform your decision.
The cryptocurrency industry is a fast-growing and increasingly mainstream entity, with the total market capitalisation having reached $237.1 billion in 2019.
As the market continues to expand and reach a larger number of markets, however, customers are finding it increasingly hard to identify the best exchanges and crypto wallets and tokens to suit their needs.
While sites such as bestcasinosites.net have some great information to help get you started, we’ve built on this to provide a detailed guide on how to choose the best crypto wallet for you. Here are some tips to keep in mind!
What are Crypto Wallets and Why are They Important
In simple terms, crypto coins are a form of digital currency, and as such they can’t be stored in a traditional or corporeal wallet.
At the same time, all tokens are underpinned by advanced blockchain technology, which creates a decentralised ledger for digital currencies and stores capital independently.
This creates a transparent and immutable payment method, and one that can remain strong against the threat of manipulation and fraudulent activity.
From the perspective of crypto wallets, these are generally pieces of software that serve as an access point for facilitating online transactions.
This combines both public and private key pairs, with the former providing a mailing address and the second providing secure access and stringent account management.
You can store your crypto token in this type of tech-led wallet, providing a secure and accessible source of funds that are kept separate from your primary bank account.
What Types of Cryptocurrency Wallets are Available?
Overall, there are three main variants of crypto wallet, namely software, hardware and paper options. We’ve outlined in further detail below, so you can make a more informed decision going forward.
1. Software Wallet
Web wallets are usually available through your browser and can be accessed securely and conveniently without any additional downloads or installation.
With this option, you’ll be able to access your funds from anywhere in the world, so long as you have access to a desktop or compatible mobile device and a reliable broadband connection.
The only drawback here is that private keys are most commonly managed by third parties, and this can create concerns for security-conscious traders or those who hold vast sums of money.
2. Hardware Wallets
These refer to physical devices, which are commonly the size of USB thumb drives and generate (and store) a variety of public and private key combinations without the need for a broadband connection.
These unique characteristics certainly establish them as secure alternatives for storing cryptocurrencies, particularly over an extended period of time.
In fact, some users consider them to be the ideal ‘cold storage’ method for storing particularly large amounts of cryptocurrency. One of the main reasons for this is the additional security provided by a corporeal wallet, as it has no operating system at all and is therefore virtually unhackable.
3. Paper Wallets
Last, but not least, we come to paper wallets, which are essentially sheets of paper with printed out pairs of blockchain addresses and their corresponding private key.
The sheet usually consists of a long string of numbers and letters, accompanied by a QR code that can be easily scanned with your phone (or similar mobile device).
However, paper wallets are not commonly used by cryptocurrency holders, primarily because they lack the layers of security and encryption offered by the available alternatives.
While they do have rudimentary security, they can be cumbersome to work with and easily overwhelm users who generate new addresses on a frequent basis.
Not only this but making multiple copies and then storing them can be complex and raise significant security risks. Make no mistake; if you lose your paper wallets, then you’ll lose all of your capital and have no recourse to reclaim it!
Cryptocurrency Wallets and iGaming
The rise of cryptocurrency casinos has been well-charted, with the poster boy token Bitcoin (which boasts a market capitalisation of $118.8 billion) and Ethereum now widely used payment methods in the industry.
In fact, tokens like ethereum are behind cutting-edge casino concepts such as ‘zero house edge’, which eliminate the historical advantage boasted by casinos and create a more transparent gameplay experience.
When choosing a crypto wallet for iGaming, you’ll need to prioritise security and encryption, and in this respect, software or hardware wallets offer the ideal solution.
Mobile software wallets can be particularly useful, for example, as they enable you to wager and complete secure transactions on the move without compromising on the overall gameplay experience.
For serious and high-stakes gamblers who regularly bet using a desktop device at home, you’re arguably better served by using a hardware crypto wallet.
Remember, this provides a type of cold storage that’s not linked to a central operating system or third-party private keys, making it virtually unhackable and the ideal wallet for holding a large cryptocurrency bankroll.