In the world of virtual currency, “wallet” is just a metaphor. As a safe place to keep and secure your ownership, crypto wallets can be a storage device installed on your computer, phone or cloud storage. If you need a tool to contain and store digital assets safely, then it’s time to learn about crypto wallets.
What is Crypto Wallet?
Crypto wallets are software that stores private and public keys.
Currently, crypto wallets are divided into 3 main groups: hot wallets, cold wallets, and paper wallets.
Hot wallets are used to store cryptocurrencies on exchanges. This one of crypto wallets will connect to the internet on a regular basis, so it is very convenient for users to transfer and receive money quickly, anytime, anywhere.
- Most hot wallets will be free to use. Users only need to register for an account and can immediately use it.
- Integrated storage of all virtual currencies.
- Quick and easy access.
- There is no need to switch between online and offline modes when using or transacting.
- Poor security due to frequent connections to the internet.
- Assets in the wallet are at risk of being lost when the wallet login computer is stolen or the hard drive is damaged.
A cold wallet, or hardware wallet, is an electronic device used to store private keys to open the storage of your virtual currency assets in cyberspace.
- High security and safety
- Convenience: no account verification is required.
- Not convenient in trading transactions
- High price
- Slow transaction processing speed
- There is a risk of loss or damage.
A paper wallet is a decentralized cold storage wallet. It means you control the keys yourself and the wallet is not connected to the Internet.
- An effective method to keep bitcoins safe from cyber attacks, malware, etc.
- Hackers can read your private key when you start typing it into your computer to withdraw money.
- Printing risks: If you use a wireless printer, your computer will send an unencrypted file from your device to the printer.
- WiFi Risks: Using public Wifi can open the door to online attacks.
- Special material: because it is paper, it is easy to damage when it meets water. QR codes have the ability to be stained with ink or dirt, making the code unscannable and easier to steal because the private key is on it.
Benefits of using crypto wallets
Simple and easy to use Crypto wallets
Crypto wallets will give users a very simple and easy experience because you can prioritize the functionality you want. This modification also allows you to choose the UI design you will experience. It is important for determining how accessible and powerful the application is. It improves the user experience and satisfaction on the website.
Long term benefits of Crypto wallets
It takes a lot of time and stages to be able to research methods to improve the technical advances of crypto wallets. Cryptocurrencies are not yet available for public use, but they have expanded globally and are expected to grow further in the coming years while various transmission techniques are being developed.
Crypto wallets are becoming more reliable as they are recognized by more and more major institutions. Crypto wallets can be a long-term alternative to both investment and spending, facilitating transactions around the world over time.
Connect to various cryptocurrencies
When it comes to investing in and storing cryptocurrencies, one of the biggest benefits of using well-known crypto wallets is that you have a wide choice of alternative currencies. Those who can buy a variety of currencies will be able to expand their wealth while reducing risk and increasing their total earning potential.
In addition, crypto wallets also have some other uses listed below:
- Make transactions to send and receive money; keep track of transaction history.
- Store the address where your coins are stored on the blockchain platform.
- helps you prove that the money stored on the blockchain is in your possession.
- allows you to view the account balance and changes in the amount of money.
How do crypto wallets work?
Cryptocurrency is becoming a tendency and part of the world economy. Whether you want to invest in Bitcoin or any other virtual currency, you need to buy yourself a wallet.
When starting to create crypto wallets, you will receive two keys including Address and Private Key. The address can be seen as an email address, and Private Key is the password of the Email. And the email inbox is like money inside a virtual wallet.
Anyone with a virtual wallet address can send you money. You will then receive a notification. A private Key is very important, you must not reveal it, if others get this password they will break in and transfer money out.
Therefore, keeping the Private Key is very important. Never reveal your Private Key or Passphrase to anyone.
Which are the top 5 best Crypto Wallets in 2023?
You will also need to consider your priorities – the convenience of access or the security of the crypto wallets. Hot wallets keep your virtual currency online; Cold wallets don’t connect to the Internet, which creates an extra layer of the barrier for hackers but also requires some more steps every time you need to make a transaction. So which wallet is right for you?
For Beginners: Coinbase
Coinbase is the most popular crypto wallets in the US. The creators make it easy to exchange popular coins, from Bitcoin to Dogecoin, with its own Visa-powered debit card and integration with Apple Pay and Google.
If you are a newcomer to the cryptocurrency market, CoinBase is a good place to start. The app can be downloaded for Android and iOS, with a familiar interface and fully integrated wallet with exchange capabilities, making it easier for users to make transactions – including buying coins. virtual with traditional coins.
Unlike regular trading cards, CoinBase is a non-custodial wallet, which means that only you hold your private key, generated by a 12-word phrase when you sign up for an account. There is a difference between keeping your funds on the Coinbase exchange page which is dependent, contrary to the Coinbase Wallet. However, thanks to the integration between the two, transferring money back and forth is relatively easy.
Currently, this exchange is providing users with four main services, including:
- Buy, sell, and exchange virtual currencies – this is the most common function of Coinbase.
- GDAX Electronic Exchange is an online exchange that provides intuitive interfaces with a simple process.
- Coinbase Commerce’s e-commerce service allows you to run a business from anywhere in the world.
- A proprietary digital platform API enables users to collect data in order to create a unique interface that is tailored to individual user experiences and needs.
- High liquidity
- High security
- Convenient and fast
- Simple to use
- Free support
- Few cryptocurrencies are supported.
- Poor customer service
- US users cannot pay by credit card.
The highest security: Trezor Model T
Trezor is one of the crypto wallets used to store popular cryptocurrencies. The new user interface of Trezor, Trezor Suit has replaced the previous web wallet application. But Trezor has also been active for a while, starting in 2011 as an alternative to Czech SatoshiLabs.
The $190 Model T which is the Trezor’s second generation of storage hardware, comes with many of the features. A big plus is that Trezor’s software is an open-source code, which means users can automatically enhance security.
Trezor’s outstanding features such as: support for many different coins; easy and quick setup; strong password encryption; two-factor authentication; backup and restore capabilities…
Trezor Suite is designed to run natively on the desktop, providing more security than a web-based application. Trezor Wallet supports more than 1600 different virtual currencies and coins, and you can make transactions directly in Trezor Suite with a built-in conversion company.
Designed to resemble an antique chronograph, the Model T is equipped with a touch screen and a USB cord for connection to a computer; the device also has a microSD card available if you want to add an external encrypted storage to the wallet. The device does not support Bluetooth, a point that many people notice is an important security concern, because the Bluetooth connection can be an easy point to be exploited by hackers.
- Compact design
- Supports more than 1,000 cryptocurrencies.
- Simple to set up
- High security
- Open source
- The price is quite high compared to the common ground.
- The touch screen on the wallet is difficult to operate.
For computer users: Exodus
Exodus is a hot wallet, which means your assets are stored online; but it’s a noncustodial wallet that only you can access by a 12-word private key.
The Exodus wallet is designed to run on Mac, Windows and Linux, and there is also a version that supports Android and iOS. The interface for the computer looks eye-catching and easy to use. The wallet is optimized for the Exodus exchange system, easy for trading.
Exodus supports over 130 different cryptocurrencies including Bitcoin, Ethereum, Tether USD and Dogecoin. There are a few limitations though: If you want to buy virtual currency with US dollars and store it in your Exodus wallet, you will first need to purchase the asset from a centralized cryptocurrency exchange wallet, for example Coinbase. Then transfer back to Exodus wallet. The app version allows users to directly purchase virtual currency with dollars. While other wallets are completely free to use, Exodus will ask for a fee every time you make a transaction through the system.
- Built-in trading and portfolio functions
- Support multiple cryptocurrencies.
- intuitive and user-friendly interface
- Charges can be adjusted automatically.
- Customer support
- ShapeShift integration makes exchanges anonymous and easy.
- Users can lose money if a keylogger device or malware attack makes them vulnerable.
- Lacks critical security features such as multi-signature support and two-factor authentication.
- Crypto-to-fiat transactions are not supported.
Blockchain – the virtual currency Bitcoin wallet
Blockchain is one of the most reputable crypto wallets in the world, with a huge number of users. So is Blockchain wallet safe? This crypto wallet is built on Blockchain technology that allows all data to be stored, encrypted and immutable to limit information fraud. Besides, the system has 2FA security function, ensuring maximum safety for users.
In addition, Blockchain wallet also has the following advantages: friendly interface, easy to use, high reputation, easy backup or restore information. However, the limitation of Blockchain is that it does not support buying and selling virtual currencies online. To make a Bitcoin transaction you will need to use a different platform.
Trust Wallet – one of the most trusted crypto wallets
Trust Wallet is considered a virtual currency wallet – an electronic wallet recommended by leading experts because it belongs to Binance – a reputable exchange in the world. Trust Wallet can support thousands of coins and tokens such as: Bitcoin, Ethereum, Ripple, Litecoin,…
This virtual wallet can be stored on computers and phones. You can safely store coins on your computer, Apple or Android phone. If you use Trust Wallet, it is faulty or hacked, you will be covered by Binance.
- Low cost, easy to use
- High security is one of the plus points of this virtual currency wallet.
- Allows users to use tokens stored right on the wallet to do things like stake, trade, or participate in DApps games integrated on the wallet.
- Supports more than 300,000 tokens on more than 50 different blockchains.
- Supports many different languages, including Vietnamese.
- Users have complete control over their cryptocurrency and can trade it at any time and from any location.
- Of course, with a hot virtual currency wallet, the security is not as good as a cold wallet.
- If the exchange has problems, then the user’s assets may also be lost.
- Transferring cryptocurrencies from exchanges or wallets other than the Binance ecosystem takes a long time.
- No blockchain support Solana – a thriving ecosystem with many notable scaling solutions and potential projects.
There are many other crypto wallets with the ability to store large cryptocurrencies, safe and secure thanks to professional encryption systems. Through this article, Twendee hopes you have the most details about crypto wallets to participate in this digital market.crypto