New to Cryptocurrency? Here’s the Best Wallet for You
People are always looking for the best cryptocurrency wallet to store their
funds in. There are so many different types of wallets that it can be hard
to decide which one to use! To help you out, here’s an overview of some of
the most popular wallets, their benefits, and their drawbacks…Finding The
Right Crypto Wallet
When you’re first starting out with cryptocurrency, it can be hard to figure
out which wallet is best. There are tons of options available (each with its
own pros and cons), but choosing one that fits your needs is paramount
in getting started. Here’s a list of some common crypto wallets, and my opinion
on them: Coinbase is – Good wallet if you’re looking for somewhere safe to
buy and store Bitcoin, but not a great place to actually buy and sell cryptocurrency.
I personally use Coinbase more as a way to keep track of my holdings rather
than using it as an actual currency exchange.
The original cryptocurrency wallets were desktop wallets, which are software
programs installed on your computer. Desktop wallets are typically safer than
mobile and web wallets, as they don’t store any of your currency online—the
software is entirely offline. That makes it significantly harder for hackers to
compromise a desktop wallet than other types of digital wallets. If you do have
a significant amount of cryptocurrency, using a desktop wallet should be one
of your top considerations when it comes to protecting your investments.
If you’re a cryptocurrency newbie, a mobile wallet is your best bet. It’s a lot
less risky than carrying around your entire crypto portfolio in one place. In fact,
Coinbase – one of the most popular mobile wallets out there – allows you to
store and trade just three different coins: Bitcoin, Ethereum, and Litecoin.
(Related reading: How Do Bitcoin Transactions Work?) If you’ve been bitten
by more innovative cryptocurrencies, like Ripple or IOTA, your wallet options
are going to be limited. The good news is that more comprehensive wallets
are on their way; we just have to wait for them. (See also: Is Now a Good Time
to Buy Ripple?)
One of these options is an online wallet, which is connected to a web
server. If you’re dealing with cryptocurrency on a daily basis, it’s essential
that you use an online wallet; it will make transaction times much faster
and help prevent transaction fees from eating up all your profit. The
downside is that your account can be hacked or suffer downtime—so,
if security is a concern, go with cold storage.
Ledger, KeepKey, and Trezor are three hardware wallets that allow you to
safely store your cryptocurrency. The most popular wallet is Ledger, a
A USB device that stores Bitcoin and Ethereum on a single device. It doesn’t
require any software or Internet connection making it very secure. Another
great option is KeepKey, which also has a screen. This allows you to send
cryptocurrency directly from your device without having to connect it to
If you’re uncomfortable with third-party cryptocurrency wallets, paper
wallets may be a good alternative. They use a separate computer to
generate your address and private key, which are printed on a piece
of paper. It can then be stored safely (e.g., in a fireproof safe) or hidden
away somewhere more remote if necessary. Offline storage is more
secure but can make it difficult to access your money when you need it.
Paper wallets can be generated by many websites and apps; just do a
quick Google search for a paper wallet generator and you should find plenty
of options—such as BitcoinPaperWallet or BitAddress—to help you get started.