Cryptocurrency wallet: what it is and how to choose it

With the growing popularity of cryptocurrencies, more and more users are resorting to using this asset as a means of payment or as an investment tool.

Cryptocurrency storage requires a cryptocurrency wallet. Its mandatory attributes, types and the best services will be considered in this article.

CRYPTOCURRENCY WALLET: ATTRIBUTES AND CLASSIFICATION
Each cryptocurrency wallet necessarily contains two keys:

• public;
• private.

The first represents the address of the wallet and works by analogy with a bank card number. The private key acts as a password. It must be secure in order to keep your cryptocurrency funds safe.

Depending on how the cryptocurrency is stored, there are “hot” and “cold” digital wallets.

In “hot” crypto-purses, all transactions take place on external services, and the private key is stored where the program for transactions with funds is installed. When working with a “cold” crypto-purse, the program must be installed on your device, and the private key is stored on a removable external media.

THERE ARE 5 MAIN TYPES OF CRYPTO-PURSES:

1. Software – loaded on your computer.
2. hardware – a separate device (portable or stationary), not connected to the Internet.
3. paper – a paper medium with a QR code is used to store keys.
4. online cryptocurrency wallet – works as a service on the Internet, which is accessed through a computer browser.
5. Mobile – a special application optimized for smartphones, tablets and other mobile devices.

When choosing wallets for digital currency, you need to be guided by the purpose and frequency of use. For storing large amounts of cryptocurrency, it is better to use a “cold” cryptocurrency wallet, because it has high security. And for frequent transactions of small amounts, it is better to use a “hot” one.

Cryptocurrency wallet: what it is and its types

TOP 5 BEST ONLINE WALLETS FOR CRYPTOCURRENCY
When choosing an online wallet, you need to pay attention to its reputation and popularity. This type of wallet is quite suitable for beginners.

It is also convenient because some services are multicurrency, that is, you can store different digital currencies in such a wallet.

Below we present a list of the five most reputable services for creating an online cryptocurrency wallet:

1. Matbea is a cryptocurrency wallet with an exchanger service. Here you can store digital currencies and exchange them. Operations of buying, selling, storing and spending bitcoin are very simple. At the same time, the wallet is equipped with the latest security system, and all transactions require a number of confirmations.
2. Cryptopay – online cryptocurrency wallet service is owned by a company from the UK. In it you can store money not only in bitcoins, but also in American dollars, euros and pounds sterling.
3. Coinbase is one of the traditional cryptocurrency wallets, in which the control over the keys is done from the servers. However, it is very popular due to its ease of use in making cryptocurrency payments, operation in 24 countries, mobile app and high degree of security.

The service also provides the ability to store cryptocurrency “cold”. Transactions in this service are confirmed instantly.

Blockchain is a popular and well-established service. It involves the creation of wallets for storing funds in bitcoins and other cryptocurrencies.

The service has a high degree of security, the storage of encrypted keys, the availability of applications for mobile devices. There is an interface with Russian-language service and the ability to export passwords.

5. Coinkite is a hybrid wallet with multicurrency service. The Canadian developer also serves debit cards and owns POS terminals.

This wallet allows for both shared and separate key storage, and has a mobile version. The service assumes the use of extended multisignature and has a multilingual interface.

THE BEST COLD CRYPTOCURRENCY WALLETS
For those who need a cryptocurrency wallet with high security to store cryptocurrencies “cold”, we offer a list of services with a high degree of reliability and the best technical equipment:

• Electrum.
• Exodus.
• JAXX.
• ShapeShift.
• Mycelium (mobile).
• KryptoKit (browser).

Those who want a high degree of protection for their cryptocurrency savings can use a hardware cryptocurrency wallet. This is a special device on which the cryptocurrency will be stored.

Some of the best hardware cryptocurrency wallets include:

• Keepkey.
• Ledger Nano S.
• Coolwallet S.
• Ledger Nano X.
• Ledger Blue.
• Trezor.