There are several ways to store money, differing in the degree of security and ease of access for settlements. This applies equally to both fiat money and cryptocurrency. Cryptocurrency wallets perform exactly the same functions as a regular wallet, bank account or safe, but it is implemented a little differently.
What is a crypto wallet
It is a kind of software for mobile and desktop devices. It may be provided in a cloud service or on a separate device. The coins themselves are not stored in the wallet, they remain in the blockchain. It contains a pair of cryptographic keys that provide access to your funds for asset management. Transferring funds between users
There are several options for classifying cryptocurrency wallets, and one of the important selection criteria is the number of currencies they support. If you plan to invest in more than one coin, you need a multi-currency wallet.
Types of cryptocurrency wallets
They are divided into cold and hot. Cold storage is storage that is not connected to the Internet. This is an ideal solution in terms of cybersecurity, but it is physically vulnerable. The storage media containing your keys may be damaged, stolen or lost. Cold vaults are not very convenient for the daily use of your coins, but are ideal for storing large amounts for a long time.
All hardware wallets are considered cold. These are miniature portable devices that connect to the network as needed.
All online wallets and mobile applications are considered hot. They are much more convenient for everyday cryptocurrency transactions, but more vulnerable than cold ones. The physical vulnerability of the device is accompanied by the risk of a successful hacker attack.
The device supports over 1600 coins and tokens. It provides a slot for MicroSD, that is, you will have the possibility of additional encryption of access settings to your assets.
Trezor provides direct access to crypto exchanges. The cost of the device is about $190.
Ledger Nano X
Ledger devices are considered among the best in their class. Ledger Nano X looks like a flash drive and comes with pre-installed software. The device supports over 30 coins, however, according to users, it is best suited for transactions with Ethereum.
The Ledger Nano X integrates easily with most software wallets and is quite secure. In 2020, there were precedents for successful attacks on Ledger devices and this is considered a significant drawback of the device. The device costs about $100.
The purchase of a gadget must be economically justified. If this is your case and your choice – remember: buy only new devices that have not been used. Otherwise, there is no guarantee that the seller will not have a backup copy of the keys and your money will always remain yours.
Exodus is available as a mobile app and desktop software. It is simple and straightforward to use, supports more than 100 coins and the possibility of internal cryptocurrency exchange. To speed up the processing of transactions, you can set your own commission rate.
Atomic Wallet is compatible with all popular operating systems and can be installed on any device. It supports more than 500 coins and the purchase of cryptocurrencies directly inside the wallet, including purchases from a bank card.
You can buy and sell cryptocurrency on LetsExchange.io with any of these wallets.