What you need to know about crypto wallets

To start working with a crypto wallet to send and receive cryptocurrencies, no special experience or knowledge is required. The main thing is:

  • attentiveness;
  • mandatory when working with any type of finance;
  • an understanding of the general principles of the functioning of the crypto market.

Contents

Functionality

Despite their name, crypto wallets do not store the cryptocurrency itself: they store records of transactions on the blockchain. Depending on the method of storing and accessing information, crypto wallets are divided into several types:

  • software (They work like computer and smartphone programs, offering cloud storage and providing access from any device anywhere).
  • hardware (They store user information on separate physical devices, like USB).
  • paper (Assuming a printout of a QR code for public and private keys to transfer and receive digital currency).
  • To choose the type of wallet that is convenient for you, decide on which devices, how often you will work with it, how many transactions you plan to carry out?

Simplicity

Now the services are trying to be as user-friendly as possible so that even a beginner can figure out how to register, send or receive digital money. However, at the registration stage, some users cannot cope with the system and leave searching for simpler solutions.

Safety

Market transparency provides the main advantage to cryptocurrencies, but at the same time, it also raises the issue of the security of transactions within the system. Secure wallets are made in such a way that it is almost impossible to get access to an operational wallet from the Internet. However, it is always essential to use all available protection options yourself:

  • Ideally, gets a separate laptop running Linux for working with cryptocurrencies.
  • Save the mnemonic phrase in a safe place, or print it out on paper and delete it from your computer.
  • If you still save the phrase on your computer, use special programs for storing passwords, for example, KeePass.
  • When sending cryptocurrency, check the recipient’s address. If this is a transfer to an exchange or another resource on the network, check that the address in the address bar is correct and that you have an SSL certificate.
  • To avoid getting to a phishing site, bookmark the resource from there and go to the resource.
  • Use a reliable antivirus, try not to open links from emails from unknown senders, and don’t download dubious files.

Attentiveness

Study the platforms for placing your funds in advance. Look at the reviews of other users: how they rate the service, fees, speed of work, and technical support. A large number of the same complaints should lead you to think. Check the availability of the resource at different times on your own. Chat with customer service representatives, and evaluate how quickly they respond to complaints on social networks and forums.

Exercise caution when dealing with your finances.

There are not so many wallet options on the market yet that would be adequate, convenient, secure, and function quickly. Among the famous online wallets, experts highlight JAXX, MyEtherWallet, Exodus, Trastra, where you can also buy a visa crypto card. Among mono storages, Electrum and Bitpay are of interest. Popular hardware solutions include Trezor.io, Ledger Nano S, and KeepKey. It is important to make the right choice by conducting an independent analysis of the proposed options before doing so.

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