Crypto wallets are a hot topic these days, with cryptocurrencies such as Bitcoin skyrocketing in value. The truth is that these wallets can be confusing to navigate, and it’s hard to know what the right one is for you. Not all crypto wallets are created equal, but there are some features that every one should have. Read on to find out how to pick the best crypto wallet for your needs.
Crypto Type
When you’re looking at crypto wallets, the first thing that should be on your mind is what type of cryptocurrency you want to store. Unfortunately, not every crypto wallet stores all cryptocurrencies. If this is important to you, consider those that offer storage for your particular cryptocurrency. This also means making sure it’s compatible with your operating system.
Security Features
Security features are one of the most critical aspects when choosing a crypto wallet. It would help if you had something secure enough to protect private keys and prevent unauthorized access by other people who may have physical or remote access to your device. This becomes especially important as cryptocurrencies become more valuable and widely used. A good rule of thumb for checking security features is whether they use two-factor authentication.
Backup and Synching
Another important crypto wallet feature is how it’s backed up and synced to the cloud. Suppose your cryptocurrency isn’t stored on a centralized server that you control. In that case, this becomes even more important because if something happens with their servers or hardware, then all of your cryptocurrencies will be inaccessible forever unless they have an alternative means for recovery, such as a backup key, which can restore them from backup. The best wallets offer redundancy in backing up so that your data is always available somewhere besides just one device or location.
Based on what we’ve covered so far, there are two main types of crypto wallets; hot storage and cold storage. Hot storage is crypto wallets that store cryptocurrencies on your device. On the other hand, cold storage refers to crypto wallets that store cryptocurrencies offline, typically in a vault or different off-site location. Cold storage is preferred because it’s much more secure than hot storage when dealing with large amounts of cryptocurrency.