We compare different cryptocurrencies to help you find the one that best suits your budget and needs. Before buying any digital currency, you should choose a wallet in which you can securely store your cryptocurrencies. At first, choosing a wallet and learning how to use it can seem difficult and overwhelming.
Find out how coins are stored on the blockchain and how to store, buy or sell coins in your wallet. We will also help you understand some basics about this technology that is causing a furor around the world.Are you looking for the best wallet for cryptocurrencies?
There is no single wallet that is “the best” for all people, since everyone has different needs; and what’s best for you may not be better for someone else. Keep in mind that we don’t compare every product on the market, but we hope our tools and information will allow you to compare your options and find the best cryptocurrency wallet for you. Compare wallets for cryptocurrencies
Legal notice: This information should not be construed as a recommendation of cryptocurrencies or any specific provider, service or offering. It is not a recommendation to make transactions. Cryptocurrencies are speculative, complex and involve significant risks: they are highly volatile and sensitive to the activity of third parties. Its performance is unpredictable, and past performance does not guarantee future performance. Consider your own circumstances and ask for personal advice before relying on this information. You should also check the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant website regulators before making any decisions. Finder, or the author, may have stakes in the cryptocurrencies discussed.
A cryptocurrency wallet is a software program that allows you to store, send, and receive digital currencies.
Since cryptocurrencies do not physically exist, the wallet does not contain any of your coins, but all transactions are recorded and stored on the blockchain.
Some cryptocurrencies have their own official wallets, while other products allow multiple coins to be stored in the same wallet.
Remember that each digital currency has a different type of address and that coins can usually only be sent between similar wallet addresses; for example, you will have to send bitcoin to a bitcoin wallet address and Ethereum to an Ethereum wallet address.
Instead of containing physical coins, a crypto wallet has a public key and a private key.
- Public key. It consists of a long sequence of letters and numbers that make up the address with which money can be sent to the wallet. It is similar to a bank account number, in that it can only be used to send money to a given account.
- Private key. It is used to access the funds stored in the wallet. With it you have control over your money. It’s a lot like your bank PIN number, as you have to keep it secret and safe. However, keep in mind that not all wallets give you exclusive access to your private key, which means you don’t have full control of your coins.
In addition to storing your public and private keys, crypto wallets are linked to multi-currency blockchains so you can check your balance and send and receive funds. How wallets and blockchains interact
The blockchain of any cryptocurrency contains a public record of all transactions that have been made since its inception. Your wallet address keeps track of all your transactions and therefore also keeps track of your cryptocurrency balance. By following the chain to this day, a wallet can find out how many coins you have.
For example, let’s say Alice sends John 0.001 BTC. Once this transaction has been verified and added to the blockchain, the ledger records that the amount of bitcoin in Alice’s wallet address has decreased by 0.001, and that the amount of bitcoin in Juan’s wallet address has increased by 0.001 BTC.
Amounts sent and received, as well as public wallet addresses, are public information.
See for yourself. Observe how bitcoin transactions are made in real time. Types of wallet for cryptocurrencies
Now that you know how cryptocurrency wallets work, let’s look at the five different types out there, each with its own advantages and disadvantages in terms of security, ease of use, convenience, and other factors.
- Easy to use, good level of security, many options, free download
- Risk of computer viruses and malware, inconvenience if you want to manage your cryptocurrencies wherever you are
Desktop wallets, which are downloaded and installed on your computer, are the most common of all. Easy to set up and maintain, most are available for Windows, Linux, and Mac, though some may be limited to a particular operating system. Many cryptocurrencies offer their own desktop wallets designed specifically for that currency.
Desktop wallets offer a relatively high level of security, as they are only accessible from the machine on which they are installed. The biggest disadvantage is that it’s up to you to keep your computer safe, so it requires antivirus and anti-malware software, a strong firewall, and a little basic security knowledge to keep your coins protected.
Most desktop wallets will provide you with a long series of words during installation. These words are known as the “seed” or recovery phrase and relate to your private key, so it is important to keep them in a safe place in case your computer stops working or if you have to format the operating system and reinstall your wallet. Popular desktop wallets: Electrum, Exodus, Copay
- Very easy to use, convenient, wide variety of options available, free download
- Losing your phone could be a problem, risk of hacking
Mobile wallets are quite similar to desktop wallets, with the difference that they are installed as an app on your smartphone. These wallets offer many similar advantages and disadvantages to desktop ones. In this case, the private key is stored on the mobile.
Smartphone wallets are usually easier to use than computer wallets and include the ability to scan QR addresses from other wallets to streamline transactions. They also make it easy to use everyday and access your coins from anywhere.
Of course, try to be very careful with the loss of your smartphone, since there is a risk that anyone who has access to your device can also access your funds. Choosing an app that allows you to back up your wallet with a security phrase might be a good idea. Popular mobile wallets: Jaxx, Coinomi, Edge
- Easy to use, convenient, quick access from any computer, usually free
- Security Risks
Web wallets (which are usually provided by exchanges, but are sometimes offered by third parties) are connected to the Internet and are usually the easiest to set up and use. Most only ask for an email address and password to open an account, and they are usually designed to offer a simple and straightforward experience to users.
The biggest advantages of this type of wallets are that they cannot be lost and that they can be accessed from any computer with an Internet connection.
However, the fact that they are available online is also, unfortunately, its biggest disadvantage. Since some platforms maintain the wallets of thousands of users, they can become attractive targets for hackers.
