First and foremost, crypto wallets are simply a storage for crypto coins. It sounds like a rather uninteresting entity; however, it is actually one of the most vital tools that crypto enthusiasts should be familiar with.
Let’s talk about what crypto wallets are and why having at least one is important.
What Are Crypto Wallets?
Put simply, crypto wallets are storage units for crypto coins – they represent your bank account online where you can store your crypto assets (cryptocurrencies). When dealing with cryptos and exchanges or any other platform that uses these as payment or exchange mediums, understanding how to use wallets properly will help you do just about everything better. Understanding how they work and why we need them in the first place will help you use crypto wallets in the right way.
A crypto wallet is actually a software program that gives you access to your private and public keys (we will explain this later). Private keys are really important because they give you the authority to send crypto coins from your wallet to other people or crypto exchanges. This means that crypto wallets contain at least one unique key: a public key, which serves as an address where other people can send crypto coins. Every crypto wallet has a unique address and if someone would like to pay for something with crypto, they will need this address so they can transfer their funds into your account.
The following things should be considered when choosing crypto wallets: safety, convenience, usability, security features and storage capacity. Each wallet serves its purpose in the crypto world, so it’s better to have several crypto wallets instead of just one. For example, if you are actively trading crypto coins through crypto exchanges, then you should be storing your crypto funds on a hardware wallet for maximum protection.
If you are using crypto wallets that are free or paid ones with loads of features and outstanding safety characteristics, keep in mind that your keys will be stored online where they can easily get hacked. While it is true that some crypto companies will offer insurance (if their servers get hacked), it is pretty much impossible to tell when this happens.
Even though having multiple crypto wallets may seem like an unnecessary task because most people won’t actually use more than two or three at once, there are plenty of crypto wallets out there and not all of them are safe to use. Most crypto wallet providers create their gear so they can serve as many crypto users as possible, which is why if you put your crypto funds on a crypto wallet that goes with unfriendly features or even has malware in it, chances are you’ll never be able to retrieve your crypto coins ever again.
To avoid such unfortunate incidents from happening and to keep your crypto investments safe, we advise you to check the best crypto wallet reviews before making up your mind about which one to trust with your precious cryptos.
Once you got an updated list of crypto wallets sorted by safety and security measures, make sure you go through the set-up process properly and familiarize yourself with all crypto wallet features before deciding on crypto wallets to use.
Why Should You Get A Crypto Wallet?
This is one of the most vital crypto questions that crypto users will need to ask themselves at some point in their crypto journey. To answer it properly, let us explain what crypto wallets are and why they are needed in the first place before giving out crypto wallet suggestions on which ones you can trust with your cryptos.
Crypto wallets are there for a reason, and that’s pretty simple: they help crypto users store different forms of crypto coins (Bitcoin, altcoins etc.), send them through exchanges or transfer them between crypto accounts. Another way to use your crypto wallet would be to withdraw its contents by exchanging it for real money (fiat currency).
What crypto wallets do crypto users need and why? Of course, crypto wallets will be needed if you want to trade crypto coins through crypto exchanges. This way, crypto transactions between different wallets can be made possible. If you are planning on using crypto for real-life transactions or if you simply wish to buy and hold some cryptos in order to make a profit from the fluctuations of their prices (conveniently called trading), then crypto wallet software is what’ll help you stay afloat.
Crypto wallet providers have been popping out left and right ever since Bitcoin was created, so it’s understandable for people who are new to the crypto world to get overwhelmed by all that choice they have when looking for a suitable crypto wallet solution. There are loads of crypto wallet providers out there, each one with its own perk list and features. Many crypto wallet options are free to use, but others come with monthly fees or even deal registration requirements before crypto users can start using crypto wallets to their full extent.
Crypto Wallet’s Ultimate Purpose
The main purpose of crypto wallets is obvious: crypto users need that little piece of software that’ll help them store all kinds of crypto coins, send them or exchange them for fiat currency (real money). The most important part about storing crypto coins is making sure you keep your private keys away from hackers because they will try to steal your crypto funds as soon as they discover how much cryptos you have stored on your crypto wallet.
What makes crypto wallets so popular is the fact that crypto coins can be stored on crypto wallets for free, and there is no need to use crypto exchanges every time you want to trade one crypto coin for another.