A crypto wallet, or cryptocurrency wallet, is used to safely and securely ‘store’ digital currency. Crypto wallets can also be used to send/receive cryptocurrency. The most popular digital currency includes Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), and Ripple (XRP).
Once you are ready to trade digital currency, you will invariably need a secure crypto wallet. These digital wallets are software programs which store public keys and private keys. They can easily be linked to the blockchain, allowing you to transact with digital currency, keep tabs on your balance, and keep your digital currency secure from prying eyes.
It should be pointed out that digital wallets don’t actually store cryptocurrency in a traditional sense. Your cryptocurrency remains a non-tangible asset. Details of your holdings are found on the blockchain, nowhere else. The crypto wallet you choose is a software program which stores your public and private keys. It also serves as an interface – a go-between – between you and the blockchain.
Whenever anyone conducts a transaction with digital assets, they are releasing ownership of their cryptocurrency to someone else’s wallet address. There are two types of addresses with any crypto wallet: a public address and a private address. The public address is the address to which cryptocurrency is sent. The private address allows the user to access their cryptocurrency as their own. For this reason, it is vital that the crypto wallet you choose is 100% secure.
Features of the Best Crypto Wallets
Many crypto wallets regularly bloviate about their security features in all sorts of techno talk. They use terms that everyday folks simply don’t understand, hoping to get you to sign up with their service. They neglect to tell you that the wallet may not even be regulated by any licensing authority. Fortunately, a handful of crypto wallets buck the trend. The eToro crypto wallet for example is fully regulated by the Gibraltar Financial Services Commission (GFSC).
This crypto wallet is also compliant with the highest industry standards in ISO 27001 and ISO 27032. Besides regulation, the best digital currency wallets are big on security features. To this end, multiple security layers are preferred. This includes secure socket layer encryption (SSL), DDOS protection (Distributed Denial-Of-Service), and multi-sig wallets. The multiple signature wallets require more than one key to authorize a crypto transaction. This enhances the security of the wallet. It’s important to choose a regulated wallet, since these are compliant with strict industry standards.
Types of Crypto Wallets Available
Crypto wallets come in several different forms. There are hardware wallets (physical wallets) such as the Ledger Nano S, Trezor, and the Ledger Nano. These wallets can have LCD screens and come in the form of a USB-style device. Paper wallets are also popular. These wallets require the user to print the public and private keys and store this information offline.
By taking your information off-line, you are avoiding cybercriminals who may be attempting to hack your personal key. Mobile wallets and desktop wallets are other popular options available to users. Yet another option is a web wallet. These can be accessed directly through your browser such as Internet Explorer, Google Chrome, or Mozilla Firefox. These may be hosted or non-hosted wallets.
How Do You Choose the Right Crypto Wallet?
It’s important to do a little homework before you simply sign up with any old crypto wallet service. The reputation of the company is a big factor when selecting a crypto wallet. For example, eToro is the world’s premier social trading platform. It also features a cryptocurrency trading operation and asset tokenization division known as eToroX. With over a decade in the game, this company is a sterling example of integrity, credibility and performance.
Given the complexity of blockchain operations, the right crypto wallet should make it as easy as possible for everyday users to simply download the wallet and transact. eToro wallet is available at the App Store for iOS devices and at the Google Play Store for Android smartphones and tablets. It cannot be stressed enough how important regulation is with the burgeoning cryptocurrency market. Too many operators have been hacked and millions have been stolen. With regulated financial companies, users can expect a much higher level of confidence in the safety of operations.
With certain crypto wallets, it’s not necessary to save any private keys or write down random phrases. This makes it much easier to control a crypto wallet more effectively. In the case of eToroX, the private key is secured by eToro Group and its localized. Ultimately, it is a personal choice. The number of digital currencies you will be using, the type of security you require, the level of anonymity you demand, your personal experience, and the type of technology that is available all come into play. It’s important to focus on quality, security, and reputation when picking a crypto wallet.
