Cryptocurrencies have become the most important thing known to a lot of people, whereas there are still a few people who don’t know about it. Therefore, this introduction will explain to you the most interesting and important facts about cryptocurrencies.
First, understand. What are Cryptocurrencies?
A cryptocurrency is a digital asset which has its origin to use as a midway of exchange. This medium of exchange uses a process, called cryptography. Through this, people can secure their transactions, can verify the transfer of assets, and can control the creation of more units. To centralized central banking system and electronic money, cryptocurrencies use decentralized control. And each cryptocurrency works with a blockchain.
Now, let’s see how it Works:
- If someone has requested a transaction, the requested transaction will broadcast to the P2P network which consists of connected computers, also known as nodes.
- Validation: The nodes will now validate the transaction and status of a user through the algorithm. After the verification, the transaction will involve cryptocurrency, records, contracts, and other useful details.
- This validation process creates a block of data for the ledger. The new block is then added to the previous blockchain. This process is the creation of blockchain which is permanent and can not be changed.
- The transaction will be completed finally.
So, here we have discussed cryptocurrency as it is a medium of exchange, created and stored electronically using a method of encryption. Bitcoin can be the best explanation to explain cryptocurrency.
The importance of security in Cryptocurrencies
Let’s think of some couple of serious facts for exchanges:
- You’re exchanging a very important and valuable Personally Identifiable Information (PII) that holds your names, address, government identification numbers, and a lot more.
- Or it holds a lot of cash or coin.
So knowing the risk in exchanging, you may realize the importance of security in Cryptocurrencies. Also, to secure your belongings, it is necessary to use cryptocurrencies wallets. So, there are a lot of types of best cryptocurrency wallets that have different layers of security.
Types of Cryptocurrency Wallets
The Best Cryptocurrency Wallets comes in a form of software, paper or hardware which is used to store, send, protect, and collect digital currency.
The most commonly used wallet is the Desktop Wallet. It’s software which is installed on a person’s system to establish a connection with the client’s coin through the internet. Storing Cryptocurrencies in wallets is better because it comes with lesser risks and can be used to store a large amount of currency. These wallets are compatible with platforms, such as Mac, Windows, and Linux.
Example of Desktop Wallets: Bitcoin Core, MultiBit HD, etc.
Hardware Wallets is physical gadgets with physical security features.
Some of the features are:
- To approve a transaction, you need to click physically.
- It has a screen where an individual can track the transactions.
- They can admit to the person by saying that it has been sent.
Few examples are, KeepKey, Ledger Nano S, Trezor etc.
This is the best cryptocurrency wallet for beginners. It’s a physical document which carries all important data needed to create private keys of a given cryptocurrency. The paper contains copies of the private and public keys used to make wallet and QR codes. It is then scanned while adding keys to software and a transaction is made. These types of cryptocurrency wallets are more secure and hack-proof.
Mobile Wallets are like desktop wallets. Users can be able to send, transact and receive the cryptocurrencies using this software in the mobile phones. For more security and privacy, people often use a TOR network as they are the most dangerous for wallets.
Examples are Android Bitcoin Wallet, Jaxx, etc.
Online Wallets can be accessible through a web browser. Hence, these types of cryptocurrency wallets are riskier. However, it is very fast which can store and complete different types of currency. Also, it costs less and again for more security and privacy, you can use the TOR network.
Coinbase Wallet, Bitalo web-only Wallet are few examples of Online Wallet.
So, among all, using hardware wallets seems to be the ideal choice if the choices are among the trusted and best manufacturer which has a good reputation in the market.
5 Best Wallets to Store Cryptocurrency
With the highly increased demand for best cryptocurrencies wallet, there are companies who have started to offer hardware wallets. To cut down the list, we have given you with the list, but the best, that you can suggest to others or use.
1. Ledger Nano S
Ledger Nano S is the most recommended hardware wallet so far. France-based Technology Company manufactures these cryptocurrency wallets. With this, they offer a range of features to store Bitcoins. It has two hardware buttons and a protected OLED display to confirm the transactions. For more security, it also asks for a four-digit PIN Code at the time of plugging in.
It comes up with great features. One of the best and important features of Ledger Nano S is that it has a backup seed key. Using this, we can recover the cryptocurrencies, if we lost or damage the device.
Now, it cost $65-$70. Overall, this is one of the best, feature-filled, well-reviewed, cheap cryptocurrency wallets available in the market.
Trezor is one of the first started hardware wallet, manufactured by Satoshi Labs. It also has an OLED display and runs in open source software. Like Ledger Nano S, it also has 24 work recovery seed key. It is suited to Windows, Linux, MAC, Android devices, etc.
The devices have two hardware buttons which give the user the power to confirm or deny the transactions. Hence, this can also be an ideal choice for storing cryptocurrencies.
It costs $99 in the US and $89 in Europe.
One more good choice that has the same features when compared to the above two. As it has the same backup seed key features with 4-digit PIN Code which enables the user to secure cryptocurrencies. More than that it supports Litecoin, Dogecoin, Ethereum, and Dash.
The device is compatible with MAC OS, Android devices, Windows, etc. Now, it costs around $129.
4. Cool Wallet
Cool Wallet started as an Indiegogo campaign by CoolBitX in 2014. And it looks like a credit card. Also, it has many new features such as, it is fully waterproof, a LED Screen, and protection seed. Cool Wallet also has a clickable circular control button which helps the user to operate the device. Moreover, the starting price for the cool wallet is $119. It is privacy-oriented, effective, and trustworthy.
Last but not least; BitLox is one of the best cryptocurrency wallets. And it also looks like a credit card. More than that, It offers 12, 18, and 24-word mnemonic backups’ features. It also comes in 3 different types of packages which are very best, Advanced, and Extreme.
It costs around $98.
Now that we have shared our choice of hardware cryptocurrency wallets, go and grab yours based on your use and choice.