Crypto wallets are basically used to safely hold and store your cryptos. However, did you know that there is more than one type of crypto wallet available? So how do you know which one to select that would serve your purpose? This article answers this important question depending on what you want to use the crypto wallet for. The following are the main and golden tips for selecting crypto wallets regardless of where you live. Read on to find out more.
Hold cryptos using the paper wallet for long-term investments
A paper wallet holds both your private and public keys on a piece of paper in a QR code form. Since it is simply a piece of paper, it is 100 percent invulnerable to cybercriminals and hackers.
- To regain full access to your cryptos, all you have to do is scan the codes which are quite convenient. You will require another wallet, like a web wallet (which has become quite popular lately), to scan your crypto in if you wish to make use of it.
- It is important to bear in mind while paper wallets are not prone to hacking, they continue to remain vulnerable to the same kind of threats any type of physical paper will be. As a case to point, if your paper wallet gets destroyed in a fire, you will lose all access to your cryptos in the same manner as if your real cash got burned in the fire.
Make use of a mobile crypto wallet for quick and convenient access to your cryptos
While it is true that mobile crypto wallets offer you the maximum degree of freedom of access to your cryptos, they might not necessarily be too safe. That said, they can be great for newcomers and very user-friendly as well.
- Mobile wallet applications are available for both Android and iPhone smartphones. Some wallet apps, like Bread wallet, enable you to manage your crypto account with a password and username. Others wallets like Airbitz, do not really hold your cryptos, offering a tad more security.
- If you own a mobile wallet, ensure that no one can access your phone without a safe password. Also, keep the phone locked all of the time when you do not use it. This is for your own safety!
Go with an online wallet if you have a small crypto amount
What you should know is that web or online wallets are not as safe as other wallet types, so they are good for big amounts of cryptos. That said, if you only wish for minor amounts and plan to utilize them chiefly to buy services and goods from the internet, then a web wallet might be the ideal option for you that you can use.
- Web crypto wallets also tend to have quite intuitive user interfaces and are quite similar to other kinds of online accounts. If you are not very savvy with technology, a web wallet might be easier and simpler for you to use.
- You can access Hybrid wallets, like Copay, on various types of devices, and are typically safer than just web-only wallets. These might also be useful if you are planning to use your cryptos at physical retailers apart from online ones.
Purchase a hardware wallet to secure big crypto amounts
Hardware wallets are devices that are offline that just hold cryptos. Since no extra software system can be installed, they are not prone to hackers and cybercriminals like other wallets. You can easily buy such devices for about 100 dollars. Hence, they are ideal for big crypto amounts that you are planning to store away for investment reasons.
- It is 100 percent true that hardware wallets will provide you the maximum security for your crypto. That said, if you store your crypto on a hardware wallet, you will not be able to conveniently access it.
Wrapping it Up
They are multiple kinds of crypto wallets and each crypto wallet has its own ideal application. Therefore, you have to carefully consider what you want to use your wallet for before you actually buy it. There are also several online resources on crypto wallets that you can go through to help you make this selection.