The world of cryptocurrencies is going through a historic boom and every day adds more investors. However, the security aspect raises doubts, can I lose my crypto assets? What happens if they hack the platform where I trade? Can I be robbed? As we will see in this article, virtual wallets can give us answers to the issue of the security of our crypto.
Before storing a cryptocurrency, you should buy it, read- best cryptocurrency exchange.What is a wallet for cryptocurrencies?
Wallets are applications, software or platforms that allow you to store, send and receive cryptocurrencies. There are also hardware wallets.
Unlike exchanges like Binance, Crypto.com, KuCoin where your cryptocurrencies, if something serious happens with these platforms as a massive hack, can be in danger, in a wallet with your “seed phrase” or seed phrase of recovery, group of between 12 to 24 words that only you know, you will never lose your cryptocurrencies beyond the virtual wallet where you have stored them. Types of wallets:
Hot wallets are wallets connected to the internet. Easy to use, they are operated by beginners looking to familiarize themselves with the technology, and by small investors. The disadvantage of this type of “hot” wallet with respect to “cold” wallets, is its security. In this sense, if you choose this type of wallet to operate, check the security layers of the site and the authentication factors they use.
Cold wallets are devices (similar to pen drives) that store cryptocurrencies and are not connected to the internet. While they have more security than hot wallets, they do not accept all types of cryptocurrencies. Also, unlike hot wallets that are free, these devices are worth approximately 80 USD. Ledger and Trezor are the most popular brands.
Below we will present some wallet options that have great advantages over the rest of the platforms on the market. The six best Coinomi wallets
When we ask ourselves which is the best wallet for cryptocurrencies, Coinomi presents itself as a candidate with many points in favor. It is a “hot” cryptocurrency wallet that serves to store, manage and exchange crypto assets. It works both in desktop mode (Linux, Windows and Mac), as well as on mobile devices (iOS and Android).
Its installation is free and has more than 1000 cryptocurrencies, including: Bitcoin, Ethereum, Litecoin, etc.
Their customer support is through a ticket system, the wallet representatives are genuinely committed to fixing users’ problems, and that’s what has given it the 5-star rating everywhere.
Coinomi has strong security, no NEED FOR IP association, identity linking, KYC, or transaction tracking. Any hidden code, malicious module or exploit can be easily identified. This provides security to users.
Website: https://www.coinomi.com/en/Trezor
Founded in 2013, Trezor is one of the most popular and oldest hardware (physical) wallets on the crypto asset market. It offers an offline wallet, with a high level of security, which can store data and prevent hacks. In addition, it allows you to access it from your mobile device, computer or tablet.
In order to back up the cryptocurrencies stored on the device, Trezor generates a recovery phrase consisting of 24 words and a security key. It also has a physical button that you must press when making an online transaction to increase security.
One of its most important disadvantages is its price that is around 80USD, when a “hot” wallet is totally free.
Website: https://trezor.io/Exodus
Exodus is a wallet that supports more than a hundred cryptocurrencies. It distinguishes itself from other wallets by its people-centric design that never dabbled in crypto assets. It has a user-friendly interface and the developers are dedicated to polishing the imperfections to make it even more intuitive.
The wallet can be used to exchange one cryptocurrency for another without any registration; however, this wallet uses simplified payment verification, which means that it does not download entire blockchains, but instead uses a number of servers to track wallet balances.
Advantages:
- More than a hundred cryptocurrencies available.
- Intuitive.
- Supports all platforms.
- Update every two weeks.
Disadvantages:
- It’s not completely open source.
- Custom fees for Bitcoin only.
- Only available in English.
- Their technical support does not make immediate responses.
- Very high rates.
Website: https://www.exodus.com/Coinbase Bitcoin Wallet
The Coinbase wallet is one of the safest options for storing your cryptocurrencies. It is a mobile app that offers a level of security similar to that of a cold wallet. 2 million users choose it and another 38 thousand merchants accept bitcoins via Coinbase.
Advantages:
- It allows you to buy and sell bitcoins from the mobile app.
- Deposit or withdraw money and buy or sell cryptocurrencies with your bank account.
- Available in more than 10 languages, including Spanish.
- You can store your cryptocurrencies and custody maintenance is free, plus the platform is regulated by a public entity.
Disadvantages:
- Buying and selling commissions are high.
- It has no customer support.
- When you add debit card as a payment method, you are charged a fee of 5 USD.
- Stored assets cannot be displayed.
- It presents problems in the Android app.
Website: https://www.coinbase.com/esElectrum
The Electrum wallet, developed in Python language is compatible with Linux, Mac OS and Windows (not iOS systems). It is a desktop wallet that allows the user to store their cryptocurrencies on their personal computer. For its encryption methods to safeguard private keys (it keeps them inside the CPU), it is considered one of the most secure cryptocurrency wallets in the world. In addition, to optimize security in transactions with bitcoin has 2-factor authentication (2fa).
Website: https://electrum.org/#home+Metamask
This browser and wallet extension called Metamask is compatible with Chrome, Firefox, Brave and Edge browsers. It is the best wallet to store your Ethereum and ERC-20 tokens, and exchange them efficiently and quickly.
One of its big disadvantages is that several scams and account hacks were reported.
Website: https://metamask.io/Conclusión
It’s no small thing to choose a wallet because your money is at stake. It is necessary that as conscious users we take some time to analyze the characteristics of each wallet before making a decision. Scams, thefts, frauds, deceptions are the order of the day and those people who do not know how the system works and take their first steps as investors can be victims of unscrupulous people who harm not only the victim but also the crypto ecosystem and its community.
read also: best app for cryptocurrencies
Disclaimer: Please note that the content of this article does not constitute financial or investment advice. The information provided in this article constitutes solely the opinion of the author and should not be considered as a recommendation for trading or investing. We make no warranty of any kind as to the completeness, reliability and accuracy of this information. The cryptocurrency market experiences great volatility and presents arbitrary movements on an occasional basis. Any cryptocurrency investor, trader or regular user should research multiple points of view and additionally be familiar with all local regulations before committing to an investment.
