With cryptocurrencies becoming more and more a part of everyday life, safeguarding this type of investment is something you need to think about.
For anyone new to blockchain, it is important to know that a place is needed to securely store everything that is purchased, whether coins or tokens such as NFTs. Coins are decentralized computer code. They can be stored on an exchange like Coinbase. However, storing cryptocurrencies in public markets can be risky, as if the market is compromised, the gains can also be.
The best bet for storing coins is a crypto wallet. There are more than 17,000 coins and new ones are released every time, as well as countless NFT tokens. Wallets, however, are far fewer options. Some tips can help you decide the best wallet for you, according to the lifehacker.
A cryptocurrency wallet is where your public and private keys work together. When you send money to the public key, the transaction is recorded on the blockchain associated with that specific currency. This is the public, unalterable record that governs the currency. Then, to access the money in the wallet, the private key is required. It is important to note that wherever coins are stored, if the private key is lost, the user will no longer have access to the money.
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There are two types of crypto wallets: hot wallets, the online wallets; and cold wallets, wallets that are offline and almost always in hardware (a flash drive or a computer accessory). Hot wallets are less secure but more affordable for everyday transactions. Cold wallets are safer against hackers, as it is necessary to have physical access (pick up the wallet) to try to invade. Even when someone takes the wallet, it is still necessary to have the private key for access. The downside of a cold wallet is that it can take longer to access and trade.
In fact, the best cold wallet is the paper wallet, which is a paper on which the public and private keys are printed. It is not the most convenient way to store information, as the paper can be lost. On the other hand, it cannot be accessed by online hackers. There are those who use wallets online and offline. Online for daily transactions and offline for long-term storage.
If the user decides to use an offline wallet, a good choice is the Ledger Nano X. It works with over 1,800 types of coins and is easy to use. It can be connected to computer by USB or Bluetooth, which makes it very convenient. Nano X balances security with an interface that is easy to navigate and use, so you can make trades faster.
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Online cryptocurrency wallet options
Who is looking for ease of transactions and does not want to have a physical object, online wallets meet the demand well. In this case, it is important to choose the most interesting wallet.
For starters: those who are new to cryptocurrencies might like Coinbase. The wallet is linked to the Coinbase market but can be used even by those who do not use the market. It stores over 500 coins and is easy to use. Coinbase offers user support and refunds can be given in case of attacks.
For those looking for security: The Trezor Model T is one of the most secure wallets. It stores over 1,600 coins and has two advantages. The first is being open source, which means it is auditable and this reduces the chances of attack. The second is having a tool that can be installed on the computer, rather than a web application, which makes Trezor less vulnerable.
For those who want a smartphone application: to always check your investments and have an online wallet, Mycelium is a good choice. An app is less secure than other platforms, but because it’s open source, it’s a better option. It also allows you to temporarily block transactions, something that can be useful for those who travel regularly.
Is that you? Do you use other cryptocurrency wallets? Leave your tip in our comments.
