Going over The Most Secure ways to Store Crypto
Crypto wallets are becoming more and more popular as the market continues its rise. There is a lot of demand for them and it’s only going to increase in popularity over time. But how do you get one? What options are available? And what should you look out for when choosing your next best bitcoin wallet or most secure crypto wallet?
This article will help answer all these questions for you. We’ll also share some tips on how to choose the best cryptocurrency wallet and go over the most secure ways to store crypto.
Best Bitcoin Wallet
A bitcoin wallet can be defined as any software that allows you to hold, send, receive, or exchange bitcoins. It basically stores your public and private keys for transactions with other users. So if someone steals your phone, they won’t have access to your funds since you never actually “see” them.
There are two types of bitcoin wallets: physical wallets and digital wallets. Physical wallets include things like USB flash drives and paper money, while digital wallets include apps such as mobile devices or computers.
The most common type of wallet today is the online wallet, which uses encrypted servers to keep your information safe. This is because many people don’t want their personal details saved locally on their device. They’re worried about keeping their data from hackers and thieves. For this reason, we recommend using an online wallet instead of a local one.
Many people prefer online wallets, but there are pros and cons to consider. On the positive side, online wallets require no extra hardware such as a card reader or smartphone app. However, you must trust the company storing your data. If you lose control of your account, you could lose thousands of dollars. You also need to make sure the website isn’t hacked, otherwise you may end up losing even more than just money.
Another downside is transaction speed. While sending funds between wallets takes minutes, withdrawing funds from an online wallet usually takes days. Some companies offer services where you can withdraw funds within hours after making a purchase, but this comes at a cost.
If you’d rather use a local wallet, then check out our list of the best bitcoin wallets for Android below.
How To Store Cryptocurrency – The Best Bitcoin Wallets
When it comes to the best bitcoin wallet, security is key. That’s why we’ve rounded up several different kinds of wallets so that you can find the one that suits your needs best.
Choosing the most secure way to store cryptocurrencies depends on your goals. Are you looking to buy low and sell high? Or maybe you’re interested in holding long-term investments? Whichever category you fall into, here are some of the best choices currently available.
Coinbase vs. Coinbase Pro
For those who aren’t familiar, Coinbase is one of the biggest names in the industry. Founded in 2012 by Brian Armstrong and Fred Ehrsam, the company has grown into a financial giant since its inception. In addition to being a brokerage platform, Coinbase offers several products including a debit card, insurance, and merchant payments.
In 2018, Coinbase introduced Coinbase Pro, a service aimed at professionals. Its main features include advanced trading tools, margin trading, short selling, and increased liquidity.
Fully Compliant With US Laws
Only Available To Professional Investors
No Support From Coinbase
Binance Vs Binance Coin (BNB)
Binance is another big name in the world of crypto finance. Unlike Coinbase, Binance focuses solely on cryptocurrencies. Their mission statement states that they aim to become “the largest decentralized ecosystem for blockchain applications.”
With offices located across Asia, Europe, and North America, the team behind Binance is committed to providing a seamless user experience around the globe. As well as offering a host of products, Binance also runs a global peer-to-peer currency exchange called Binance Smart Chain.
Like Coinbase, Binance also launched BNB tokens back in 2017. These tokens are used globally as incentives for new users to join the network and participate in the growth of the company.
Unlike most cryptocurrencies, BNB doesn’t trade independently on major exchanges. Instead, it operates alongside Ethereum ERC20 smart contracts on the Binance chain. This means that users can take advantage of both worlds without having to worry about compatibility issues.
Greatest Liquidity Across All Exchanges
Allows Users To Trade Directly Through Wallets & Apps
Compatible With Both Mobile & Desktop Platforms
Offers 24/7 Customer Service
Supports Multiple Currencies
Provides Access To Global Marketplaces
Lack Of Localized Support
One of the oldest cryptocurrencies still in existence, Ethereum was founded in 2014. Since its launch, the price of ETH has soared, hitting $1,400 per coin during 2020.
Unlike most other cryptocurrencies, Ethereum does not issue coins directly to investors. Instead, it uses something called tokens. Every month, new blocks of code are added to the Ethereum ledger known as the blockchain. These blocks contain instructions for updating the state of the blockchain.
You can think of tokens like shares in a company. By owning them, you own part of the overall value of the project. Once issued, tokens can be traded through various platforms. Most often, however, they are stored on a wallet, such as MyEtherWallet (MEW).
While Ethereum itself is open source, MEW is closed source. This means that unlike Ethereum itself, MEW cannot be audited by anyone outside of the development team. Because of this, we advise against using MEW unless you know exactly what you’re doing.
Instead, we recommend downloading an official client, such as MetaMask. This gives you direct access to your tokens and makes it possible to interact with other users securely.
Available Around The World
100% Open Source
Safe Storage & Security
Difficult To Use
No User Support
Doesn’t Have Any Localization Services
Most Secure Ways to store Crypto
As you can see above, each option provides varying degrees of protection. When choosing the right wallet for your needs, it’s important to consider what kind of activity you intend to perform.
Some options are better for day-to-day purchases while others are intended for larger purchases or investments. Here are some general guidelines to follow before deciding whether to go local or online.
These are typically used for daily purchases and withdrawals. Because you can store your information locally, you don’t need to rely on third parties for storage. However, this puts your privacy at risk. Many of these also come with built-in malware, meaning that your data might be stolen.
On top of that, if you ever lost your device, you would lose access to your funds. Even worse, some of them let you create multiple accounts, allowing scammers to steal more than once. Basically hardware wallets are one of the most secure ways to store crypto.
These allow you to manage your funds remotely, giving you peace of mind. However, online wallets are vulnerable to hacks and breaches. Additionally, there’s always a chance that the site hosting your data goes down. This would mean that you’d lose your funds forever.
To solve these problems, some sites provide insurance. This protects you in case anything happens to the company handling your funds. Furthermore, online wallets generally support international transfers, meaning you can move your funds between countries without much hassle.
However, due to the nature of internet banking, transactions usually take longer to complete. Depending on your location, this could result in missed deadlines. Also, many banks charge higher fees for international transactions.
Which Is The Right One For Me?
We highly recommend using an online cryptocurrency wallet whenever possible. Not only are they safer, they save you money in the long run. However, some people prefer offline wallets since they feel more comfortable managing their assets themselves.
Overall, we advise sticking to trusted providers. Avoiding scams costs you less money and keeps your information away from prying eyes. Now you know everything there is to know about the best bitcoin wallet and the most secure crypto wallet. Hopefully, you now understand which ones are suitable for your particular situation.
Once you decide which one to download, remember to stay vigilant! Scams targeting cryptocurrency holders are on the rise. Make sure you remain alert and learn how to protect yourself, knowledge is important as a means for figuring out the most secure ways to store crypto.