Cryptocurrency wallets don’t store digital currencies the way traditional wallets hold fiat currency; instead, they are tools to transfer a code to the blockchain. This code, in turn, allows users access to their balance, so they can perform transactions with their coins. This page will introduce different types of cryptocurrency wallets, and will explain the importance of wallets for cryptocurrency users.
Types of wallets
Because cryptocurrency wallets don’t have to handle physical coins, they can take a number of different forms. Users can keep their coins in desktop wallets, which are simply software applications run on their own computer. Alternatively, users can use online wallets for this purpose; this requires less upkeep and technical knowledge on the part of the user. Other options are hardware wallets, which are specialised devices for the processing of cryptocurrencies, or paper wallets, which contain the public address and private key used by a user.
Why do you need a cryptocurrency wallet
When a user buys cryptocurrencies on an exchange, they are initially stored within the user’s account on the exchange system. Whereas they can technically stay there indefinitely, however, it is a good idea to move them into one’s personal wallet as soon as possible. In this way, even if the exchange were to crash or get hacked, the user’s coins are safe and in a place where only he can control them.
Coinvault is an online cryptocurrency wallet system. It prides itself on its extensive security measures, but also on its simplicity of design, which makes it attractive to beginning users. It supports a wide range of coins, from major coins like Bitcoin and Dash to newer currencies like Zayedcoin.
Coinbase is primarily a cryptocurrency exchange, and can be used to buy or sell a large range of cryptocurrencies. So far, it accepts Bitcoin, Ethereum and Litecoin. At the same time, however, it also offers its own online wallet system, so users can use it to store their coins, too. Finally, it contains an extensive FAQ-database, for users who wish to learn more about cryptocurrencies.
Cryptonator is an online wallet which can be accessed from desktops, wallets, but also from mobile devices, which adds to its portability as a system. It allows for the secure storage of a number of different currencies – such as Bitcoin, Litecoin and Zcash – but also for the instant exchange across different currencies.
Exodus is a desktop wallet that users can download and use on their own computers, whether Mac or Windows. Since data are locally encrypted (on a user’s own desktop), the user’s coins are entirely safe. Exodus also allows for currency exchange, and conveys information through streamlined, high-definition graphics.
Ledger offers a series of hardware wallets; these are specialised devices developed particularly for the storage and management of cryptocurrencies. Ledger works with a very wide range of currencies, from Bitcoin to QTUM, and can be plugged directly into a user’s computer. Additionally, Ledger has developed its own tablet-like device, the Ledger Blue, which can be used independently of a computer.
Trezor, too, sells a hardware wallet, which can be plugged into a computer or tablet but can also be taken along anywhere, due to its small size. It promises the most up-to-date security processes, yet also simplicity of use, featuring only a small screen and two large buttons. These two features put together make it extremely hard to hack.
Mycelium offers a mobile wallet available for Android or Apple devices. So far, it works only for Bitcoin, and allows users to store, send and receive their Bitcoins while benefiting from bank-grade security. It can also be used in combination with separate hardware wallets, for extra privacy and security.
My Ether Wallet
My Ether Wallet is an open-source online wallet, which prides itself on its ability to provide bank-like services, without the privacy sacrifices and fees made necessary by use of a bank. It generates its security keys entirely within the user’s own browser and thus does not control the user’s data in any way; in this way, it guarantees security for the user’s funds.
Go to My Ether Wallet