Wallets, digital wallets or cryptocurrency wallets, are the virtual wallets where you can store your cryptocurrencies, be it Bitcoin, Ether, Ripple, Dogecoin, etc.
Since the emergence of cryptocurrencies, the financial market is changing thanks to blockchain technology, as it increases the security and speed of transactions.
Nowadays, more and more companies are accepting payments with cryptocurrencies for their products or services, and it has become a means of transaction for banks or institutions.
From the Money Investors, we want to help you get to know the world of cryptocurrencies and the blockchain, so that you can handle the information with ease. If you want to enter the world of investments, we have courses adapted for beginners and for experts who want more advanced knowledge.
In this article, we are going to talk about what are digital wallets or cryptocurrency wallets, what types are there, and which are the most important in the market today.
Table of Contents
What is a wallet, purse or cryptocurrency portfolio
The wallets, digital wallet or purse cryptocurrencies, are where we manage our Bitcoin or Altcoins. It is a software or a hardware device that allows us to exchange or store our cryptocurrencies through the Blockchain network of each cryptocurrency.
We can differentiate two types of Wallets depending on whether they have a network connection or not. This classification is made between cold wallets and hot wallets.
Cold wallets
The cold purses or wallets cold, are hardware devices without internet connection we can store our cryptocurrencies. These wallets have the advantage that you increasing the security of your digital assets since they cannot be hacked due to not having a connection.
The problem is that, for security reasons, these cryptocurrency wallets tend to have high prices, and when you accumulate a large number of assets, it is almost necessary to have one.
The best cold wallets or cold wallets.
Depending on the function of each cold purse, we can decide on one or the other. These are the 3 most important cold wallets today:
Ledger Nano X
Wallet of French origin that allows connection with devices via Bluetooth or USB. This device is designed with the structure of a USB and has a capacity of more than 30 cryptocurrencies, either Bitcoin or Altcoins.
Ledger nano S, its predecessor, is a first generation wallet and was one of the pioneers in the world of Wallets. It supports more than 1500 cryptocurrencies.
Trezor model T
This model belongs to the second generation of hardware wallets. It has a touch screen, offering an intuitive interface to verify and approve operations. It was developed by Satoshi Labs, and it was the first company in the world to produce hardware that supports Bitcoins.
This cold wallet allows you to store various cryptocurrencies such as Bitcoin, Ethereum or Dash. How against, it has the highest price in the market.
Like Ledger Nano X, it comes with a USB Type-C cable so that it can be connected to a computer or smartphone.
Keep Key
This cold wallet has been developed by a new company. Its appearance is similar to Ledger but contains a much more comfortable reading screen.
The advantage of this cold wallet mainly in addition to the security of being a cold wallet is the readability of the screen and the synchronization with the Shapeshift wallet, which allows easy transactions. On the contrary, the disadvantage is its current small community and that it can only be used via USB.
Hot Wallets or Hot Wallets
The hot portfolios are where you can store your cryptocurrencies with having an internet connection. They consist of software that allows you to manage your cryptocurrencies.
A hot wallet tends to be more vulnerable when connected to the internet, however, they are more accessible to anyone.
Best wallets or hot wallets
Within this classification of cryptocurrency wallets, we can find a great variety of software that allows us to exchange or store our digital assets. We are going to mention some of the best known on the market.
Klever Os
Klever OS is an innovative operating system and a cryptocurrency wallet that allows developers of all platforms to use it intelligently and safely within their applications, cloud, servers, hardware, smartphones, pen drives, mobile devices and wearables.
Klever OS rethinks and rebuilds the core of the wallet system to replace crypto wallet solutions and give the user advanced security to a whole new level. It is made up of an SDK library that automatically extends your application to organize and protect information on the device of your choice.
Trust Wallet
Cryptocurrency markets never sleep and their volatility means that everything can change in the blink of an eye. Trust wallet is one of the most popular digital wallets of the moment.
Trust wallet allows you to manage your tokens and cryptocurrencies, in addition to controlling all your private keys at the same time through a very simple mobile application. Trust wallet allows you to store the majority of tokens with the highest projection on the market.
Trust’s universal portfolio allows backup copies of all your assets, simplifying portfolio management. In addition, it includes a Web3 browser that allows you to explore Internet DApps without having to leave your portfolio. Trust DApp Marketplace offers you all the trust of the blockchain and rigorously meets quality and security standards, as well as being optimized to the highest level.
Trust Wallet is working with Binance on features to enable market monitoring, custom networks, testnets, a native DEX, and full integration with the Binance infrastructure.
Candles Wallet
The Velas Wallet project not only allows users to store non-native cryptocurrencies on the network such as BTC and EOS, but with its Schnorr Signature system, the technology ensures that joint wallet owners agree before executing one. transaction.
By using the Velas wallet, users have the ability to support other cryptocurrencies alongside the platform’s proprietary VLX token. This includes Bitcoin, Ethereum, XRP, Monero, and EOS. Velas users can create private keys from the wallet, store supported non-native currencies, and also create multi-signature backups.
Coinbase
Coinbase is the best known and most used Wallet on the market. The Coinbase cryptocurrency wallet is one of the safest, and that in the case of a mobile App. This hot wallet accepts Bitcoin, Ethereum, and Litecoin.
Coinbase offers a level of security that is close to that of cold wallets.
This wallet has commissions of 1.49% for normal purchase-sale, and 3.99% for instant purchase.
VeraWallet
VeraWallet is the viewers’ entry point to the Verasity network, allowing users to store, earn, and transact with VRAs. Inside the wallet, viewers have access to their main account, deposit account, and betting account.
Currently, the Verasity project is one of the most interesting on the market due to its usefulness and the B2B advantages it provides to brands as well as content creators.
Electrum
Electrum is another of the best-known hot wallets, and it is one of the original Bitcoin wallets. It exists since 2011 and can operate with all operating systems. It is recognized as one of the best hot wallets in the world.
Electrum does not download the full blockchain, and it supports cold wallets such as Ledger or Trezor. It is an open-source wallet and allows its users to apply custom fees on transactions.
Electrum allows you to determine the level of security, but its commitment is solely to Bitcoin.
Exodus
Exodus is a hot wallet with a very intuitive user interface. One of the most popular advantages is that it allows exchanges between a large number of cryptocurrencies, reaching more than 1000 different cryptocurrencies.
Exodus is ideal for beginners starting out in cryptocurrencies, as more advanced users may find it lacking in some features.
This hot wallet allows you to set custom fees to keep costs down, as well as giving you the option to set automatic fees to ensure a fast transaction.
Types of wallets or cryptocurrency wallets
In addition to the classification that we have made previously, we can distinguish the cryptocurrency wallets according to the platform where it is executed.
We can find 5 digital wallets for our assets:
Desktop Wallet
It only allows us access from a PC, where we must download and install it. It allows you to create and store your private key and public address to manage your cryptocurrencies. It has a higher level of security than other types of wallets since you can connect or disconnect it from the network.
Mobile wallet
As the name suggests, these wallets can only be run with a smartphone. They are based on applications, share the same user interface system and are created to be supported by Android or IOS operating systems. It has the advantage that it offers greater mobility since you can always carry it with you and use it from any location where you are.
Web Wallet
Wallet or cryptocurrency portfolio stored in the cloud. It is based on web applications, allowing you to access it from any connected device. It is a more vulnerable type of portfolio as it is stored in the cloud, since it is connected to the network, and implies control by third parties that manage the server.
Paper wallet
It belongs to cold Wallets and offers greater security. It is a wallet printed on paper that contains the keys and addresses to manage your cryptocurrencies. They work by generating QR codes and their creation is very simple. Through software or online platform.
Hardware wallet
They are the cold wallets that we discussed earlier. They are usually in the form of USB and save the keys to access your cryptocurrencies in the safest way, as they do not have a network connection. We can find different types of digital wallets according to their type of connection, storage capacity or transaction capacity.
Conclusion
With the increase in utility that cryptocurrencies such as Bitcoin, Ether, Litecoin or Cardano are offering, as they become part of transactions between companies and installed as a payment method, we have to know how and where to manage our digital assets.
Cryptocurrency wallets, wallets or purses are the places where we can carry out transactions and exchange, or simply store them. Knowing how to choose between the different options will give us greater security for our operations with cryptocurrencies.
Probably wanna read:
- Where To Buy or Sell Cryptocurrencies
- Cryptocurrencies: What are they, when they appeared and how do they work
- Blockchain: What it is, how it works, types and benefits for cryptocurrencies
