Factors to consider when choosing the perfect crypto wallet

Cryptocurrency is a virtual asset that you can store for free, unlike fiat which you have to entrust in a bank. All you need is a crypto wallet or e-wallet to secure your savings and interact with markets. However, there are plenty of crypto wallets to choose from so keep the following factors in mind

There are a lot of features that every wallet has to make themselves stand out among users. Most of those differences involve partnerships with other platforms in which a wallet’s services are needed. These types of partnerships can improve over time so focus on the important features like the following:

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Convenient method for sending and receiving crypto

The first feature that you must consider is how easy it is to use for sending and receiving crypto. Almost every wallet uses the QR code and wallet address for this but some wallets have easier means to interact with assets. The wallet’s ease of use affects your enjoyment of using cryptocurrencies. Avoid wallets with a faulty design that delays your withdrawals of your winnings from crypto casinos. Quickness and convenience is always the key to a satisfying experience.

Easy means to track your portfolio

Whether you are a trader or a Bitcoin casino gambler, you will need to have the means to keep track of all of your currencies. Wallets nowadays have a feature that lets you see how much you have saved, how much you earned in the past week, and what is its current price in the market.

However, these are privileges given by the wallet’s affiliations with exchanges and the network. Third-party wallets don’t often have this feature but they are better known for more reliable security. You may opt for the latter if you plan on holding your assets but go for the former if you want to be active as a trader at an exchange or a gambler in a Bitcoin casino.

Capability of interacting with blockchain features

Ethereum users have a plethora of features to use thanks to the variety of decentralized applications (dapps) supported by the network. It also lets them convert between ERC-20 tokens using Ethereum’s decentralized exchanges like UniSwap. Access to such features in the Ethereum network requires the user to use a WEB3 wallet like Metamask. Other networks can be interacted with a standard wallet using private keys.

Two types of crypto wallets

All wallets can be categorized into two broad labels known as hot and cold wallets. The main difference between these two is how they work. Hot wallets use cloud storage so your client is always or frequently connected to the internet. Cold wallets are the hardware that is detached from the internet as it keeps your private keys safe from being discovered.

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Cloud storage (Hot wallet)

Cloud storage wallets can come in a variety of forms. The most popular of which in the present is the mobile wallet. It’s a type of online service that lets you install a client on your phone through which you can interact with your assets and exchanges. 

Browser-based wallets, on the other hand, can be accessed anywhere as long as you are using a device with access to the internet. Exchanges and services that accept crypto often provide users with an on-site wallet that lets them make easy transactions with little to no service fee.

Advantages

Using a hot wallet can come with plenty of conveniences. You can link it with online exchanges and services that accept crypto as payment. Some of these services can let you transfer money with a click of a button, reducing the risk of mistyping an address and sending assets to the wrong address.

Disadvantages

Hot wallets are prone to theft because your private keys are stored in a cloud. To clarify, the wallet is not vulnerable to breaches. The danger lies in your device’s security. Hackers can steal your private information through a public internet connection or malware on your computer. The best way to protect yourself is with the help of antivirus software and by always logging off of your wallet when you are not using it.

Cold storage (cold wallet)

Cold wallets are often called ‘hardware wallets’ and they also come in many forms. The most popular of them is the plugin cold wallet which looks like a USB flash drive. More expensive designs include an interactive screen that can generate codes to represent the users’ private keys. Others come with a form of puzzle that the user can solve to gain access to their assets in case the password is lost.

Advantages

Cold storage wallets are convenient in terms of security as you don’t have to worry about hackers or network failure. Most of them are designed to be portable so the user can keep it anywhere or in a safe for additional protection. You can use it even with a computer that does not have antivirus. If it is ever lost or stolen, all hardware wallets generate a seed code that you can use on a similar model to recover your assets and private keys.

Disadvantages

The main disadvantage to hardware wallets is how it is too secure for careless users. Many Bitcoin holders started mining when the networks were announced but forgot their passwords over time. On the other hand, some hardware wallets can be uncomfortable to use for online services like crypto casinos. You will need to link it with a third-party cloud storage to transfer them efficiently.

Conclusion

All crypto wallets serve the same purpose. The only factor that should affect your option is what you plan to do with your cryptocurrencies. If you wish to frequently use online services like a Bitcoin casino, then you need an intuitive platform that only software wallets can provide. It’s also worth noting that you can have two wallets at a time: one for storing while the other is for using. That is a popular combination that you can do while playing at Gamdom, one of the best online casinos for crypto users. 

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Words: Clarence Clarke