So you have been infected with crypto fever and have decided to invest and try to make a profit. All the parameters show that it’s the right decision. Digital currencies are welcomed around the world as the future of finance, but the price volatility surrounding these digital offerings still makes them a risky investment. With the risk comes excitement, though, because the riskier the investment, the greater its profitability if successful. You can become rich literally overnight, and this fact is what keeps more and more people investing.
The fact is that in this year Bitcoin still has managed to have the highest market value reaching as much as $ 32,000, followed by Ethereum with a value of $ 2,000 that continues to grow steadily.
Want to store bitcoins and don’t know how?
But before you actually buy your crypto, you need to decide on what type of wallet to choose. There are different types of crypto wallets. Let’s look at what type of cryptocurrency storage wallet is the best choice for you.
As such technologies, trends and values change every day, it is sometimes difficult to keep up with all the latest things in the world of crypto. Deciding on what type of wallet to choose is surely one of the most important things to decide on.
Since there are various ways to store cryptocurrency through different types of wallets, we will try our best to make a general division, and explain the main characteristics of each.
Here is a general division:
- cryptocurrency wallets related to the stock market,
- software wallets located on a computer,
- hardware wallets specially designed to keep your money safe, and even the ability to print and lock everything in a fireproof safe.
Since each of the mentioned has a different approach or a solution to storing crypto, all have their advantages and disadvantages.
The best option for those just starting out with crypto is online wallets. Why? Because they allow you to store your crypto in a place that is easily accessible from anywhere in the world, from any device you choose. Wallets like Crypterium are often associated with the stock market, they make exchanging for traditional money or other cryptocurrencies quick and easy and are easy to set up and get started with. To make the access even more simple, smartphone apps have been developed to give you easier access to the status of the currencies in your wallet.
One thing that concerns the most, especially those who invest a lot, is security. Most offer solid security in the form of two-step authentication, or more, and some will ask you for documents with your photo to verify your identity. This does not mean that they provide less anonymity than some other wallet options we will mention later.
However, with these wallets, you are more dependent on a third party for support, when you need it. If the stock market is hacked and loses all funds, then your money would most likely disappear as well. If the stock market is hit by heavy traffic or a DDOS attack, you may not be able to access your currencies. Since your currencies are stored on some remote servers, hackers could steal your identity and enter your account without your knowledge, in order to steal your cryptocurrency savings.
For these reasons, these wallets are recommended for those who are just starting to trade crypto, for those who change small amounts or keep it for a short time.
Offline software wallets, sometimes called ‘desktop wallets’, offer great ease of use and access as well. Some aim just to be used on desktops and laptops, while others focus more on mobile devices and come exclusively as apps.
The great advantage of this approach is independence. Every stock market in the world can fall, and you still have technical ownership and access to your crypto. It also means you would have to be directly hacked or attacked to lose access. Your identity is protected, without the need to sign up anywhere or provide an identification document to sort it out or access your wallet.
If it has a mobile application, you can easily transfer coins between yourself and other owners, you can even use them to pay for certain things in real stores that accept crypto as a means of payment.
This does not mean, however, that these types of wallets are perfect. They are still software based so they are susceptible to hacker and malware attacks. Those with an online component for easier sharing are also more public than real offline hardware alternatives. If you store a lot of bitcoin in one of these systems, you can attract unwanted attention.
Hardware wallets offer the most protection
For those who want the greatest security possible for their bitcoin investment or generally plan to work with a larger amount and value of crypto, a hardware wallet is a must or a “must-have”.
By storing your coins on a special piece of hardware that is always ‘offline’, i.e. not connected to the internet, you get the security that no one will be able to hack and steal your worth. Hackers and malware will find it very difficult to infiltrate your wallet, and by preventing someone from physically stealing the device from you, it is almost impossible to lose access to your cryptocurrencies.
The best advice is to try a few wallet options and choose the one that meets your criteria and choice of crypto. In any case, avoid using wallets within various exchanges because they make the otherwise simple transactions provided by the world of crypto more difficult and more expensive. Be smart and start small, with a limited amount of crypto, to test the wallet and find the best one.