Whether you are a beginner or an expert trader, a wallet for all cryptocurrencies is essential to those who want to take a plunge into the cryptocurrency market.
It is intended to securely save and store your digital money in a place where you can easily access it. In other words, it works pretty much like your tangible wallet. This means that if you don’t have a wallet, you don’t get to have crypto.
In this post, we will explain why you need wallet for all cryptocurrencies, the different kinds, our recommendations, and tips for keeping your wallet protected.
What Is Wallet for All Cryptocurrencies?
This wallet is a secured storage space for your digital currency, whether Bitcoin, Litecoin, and more. You will be required to have wallet to use any cryptocurrency.
A public key and private key are both needed to conduct transactions. The private key is a long sequence of alphanumeric code that permits a transaction. The public key, on the other hand, is used by the other person to request a transaction.
The one who owns the cryptocurrency uses the private key to give permission to start the transaction. After the transaction, which is combined with the blockchain to “record” the transaction.
The wallet for all cryptocurrencies will keep your private keys secured. You will not be able to access your digital currency once you lose or forget your private keys. In addition to that, you will no longer own your cryptocurrency if your way to access it is stolen.
What Is a Wallet For?
It is one way of securing your money like in a bank. But unlike the bank, you don’t need to go out to a physical location or financial institution to secure your money. You can earn and get your money at home or where ever you are.
Your wallet can be used as a place to store your mined crypto, to trade coins, or to buy from stores and retailers by paying crypto. In other words, this is your own bank where you can control and safeguard your investments.
Since cryptocurrency is decentralized, only you have to power to oversee your transactions and appropriate where your digital money goes.
There are different kinds of wallets for all cryptocurrencies. Which one is best for you? Let’s find out.
Kinds of Wallets for All Cryptocurrencies
There are four kinds. Every type offers different security measures and can work online and/or offline. Below is a short explanation of each one.
This is the wallet often used by those who are still learning how to buy cryptocurrency. Through this type, you can explore varying means of earning crypto. This is where users conduct their transactions.
Other online wallets allow you to transfer your digital money to an offline wallet (which we will discuss later). For the reasons mentioned, this wallet type is the best for day-to-day transactions.
Majority of online wallets employ a 2-factor authentication feature to secure your keys. However, since they are online wallets, they are most susceptible to getting hacked.
We suggest that you splurge in offline or hardware wallet apart from an online wallet if you intend to invest in crypto. This way, you have a safe space to store most of your cryptocurrency. Just leave a few coins online so you still have something to use to spend.
Coinbase is the best wallet for all cryptocurrencies we can recommend for this type. It is user-friendly and is proven as the safest choice among online wallets. It supports Bitcoin, Bitcoin cash, Litecoin, Ethereum, Ripple, and a slew of other digital currencies.
You can also access Coinbase broker exchange through this wallet.
These are also known as desktop wallets, and can be installed on your computer. They are called as such because you can use them offline – without connecting to the internet. You just need to download your digital money from your online wallet into your offline wallet.
Since your private keys are stored in your computer, you can somewhat avoid the huge risk of losing your crypto from hacking. It is more secured compared to online wallets.
You still need to be careful though, as computers can still be hacked. They can also crash when affected by viruses and malware… and they can get broken or stolen. When that happens, your wallet and keys can vanish.
The good news is that there are recovery systems in place to restore your private keys when those unfortunate events happen.
We recommend using Electrum as this works on different operating systems such as Windows, Linux, and Mac. As it is user-friendly, both novice and experts can navigate the software privately.
What users like most about this offline wallet is that you can back up your data to a hardware wallet. Recovery option is also available for added protection and security.
This is also called as cold storage and generally uses an external device or USB drive to store your private keys.
Your cryptos are offline so there is minimal risk involved. However, you will need to splurge on this one as this is one of the best wallet for all cryptocurrencies when it comes to securing your digital money.
The thing is hardware wallets can still be lost or stolen. We advise that you store your hardware wallet somewhere safe so no one steals it… and make sure that you don’t forget where you hid it. Plus, take extra care of your device too, so it does not get broken.
The cream of the crop when it comes to hardware wallets is the Ledger Nano. It is as small as a USB drive, but with a display for added security. You can try the 2-factor authentication and the pin code lock so only you can confirm usage or transactions.
Since this particular wallet is sturdy, it cannot be easily damaged or pried open.
Next in line is Trezor which is a favorite among crypto enthusiasts. Expect to shell out more money for Trezor than for Ledger Nano, as this one is safer. You can use this device as backup for your offline wallet as well.
Among the cryptocurrency wallets, this is considered the safest as it is a 100 % offline. There is no chance of your wallet getting hacked or infected by viruses and malware.
It is called paper wallet because you will print out your code with your private keys in it on a piece of paper. It will take some time to set up your wallet and have it printed, but it is an awesome and safer alternative to the other wallets for all cryptocurrencies.
The only downside is that paper can be easily damaged if not properly stored. We suggest that you laminate your paper wallet to keep it from getting wet and ripped.
We propose that you try the paper wallet generator called Walletgenerator.net. It will provide you with step-by-step instructions that are easy to follow so that you can make your paper wallet.
This wallet for all cryptocurrencies supports more than 180 currencies. Make sure you have a printer to print out your wallets though.
How To Keep Wallet for All Cryptocurrencies Secured?
Whether you are a beginner or an expert crypto trader, it is of utmost importance that you know how to keep your wallet safe. You need to do whatever needs to be done to protect your keys.
Here are just some of the tips you can adhere to:
- Have multiple wallets – users generally start with online wallets. Considering its susceptibility to getting hacked, you might want to secure your crypto with an alternative wallet or two. If you plan on investing in digital money, make sure that you get other wallets, or even all kinds for good measure.
- Use necessary security measures – grab the opportunity to use the 2-factor authentication. If there are more security options, take advantage of them as well. Also, ensure that ONLY you know how to gain access to your cryptocurrencies.
- Back up and recover – back up to an offline wallet if you are currently using an online wallet. Keep in mind that both online and offline wallets have vulnerabilities so having a backup is the key. There are also recovery systems for offline and hardware wallets so don’t be too lazy to set them up no matter how long it takes.
We all want to protect things that hold the most value to us. Cryptocurrency is no exception to this. Therefore, we need to know how to secure our digital money by keeping our wallets safe.
Each wallet for all cryptocurrencies have their own strengths and weaknesses. We all start with the online wallet, but we strongly suggest that you splurge on offline, hardware, and paper wallets. They are really worth spending on.
All of them can keep your crypto safe, but they each possess advantages and disadvantages. We are sure that you know them as we have already explained them to you – along with our recommendations per wallet.
Now, you are more than ready to pick out the best wallet for all cryptocurrencies for you.
To learn more about cryptocurrency, visit How to Earn Cryptocurrency with Top Cryptocurrency Faucets and How to Earn Money on Cryptocurrency.