Cryptocurrency Wallets: Which One To Choose? Top 5 Wallets 2018
The popularity of cryptocurrency is increasing. More and more people start to invest in digital coins. Like traditional fiat, cryptocurrency needs to be held somewhere. For keeping bitcoins and other altcoins, cryptocurrency wallets were created. In March 2018, more than 23 million people use cryptocurrency wallets. Moreover, with the rise of a cryptocurrency price, the amount of e-wallets users grows as well.
Blockchain Wallet Users March 2018. Source: blockchain.info
What is a cryptocurrency wallet and how does it work?
Cryptocurrency wallet is a digital analog of a traditional wallet that stores digital currency, allowing its users to send and receive cryptocurrency. Transactions are processed using public and private keys stored in the wallet. Private keys are digital codes that can be accessed only by you. In fact, you do not have the cryptocurrency in the wallet. Digital wallet keeps the records of transactions on a blockchain – a list of all transactions made – allowing to conduct different currency operations. Cryptocurrency wallets vary. Some are designed only for one cryptocurrency, others support several altcoins. Wallets also differ in their nature, existing in different forms.
Types of cryptocurrency wallets:
Hardware wallets store private keys in a hardware device. Hardware wallets are suitable for holding big amounts of cryptocurrency with no need in regular transactions. Among the advantages of hardware wallets, there is the high level of security for long-term cryptocurrency keeping. However, to store your cryptocurrency this way, you have to spend money on a special hardware device.
Online wallets, or web wallets, are accessed through the web browser from any device and from anywhere in the world. They are good for holding a small amount of cryptocurrency you are planning to make regular operations with. Online wallets ensure fast transactions with no delays. They are far too often connected with the exchange, which allows users to trade cryptocurrencies for traditional currencies like euros or dollars.
Desktop wallets store cryptocurrency on the hard drive completely offline, which makes them more secure than the web ones. They are user-friendly, even with no Internet connection. However, desktop wallets store cryptocurrency on the computer so viruses may do damages. Also, if a computer stops working, the access to the desktop wallet is lost unless you back it up.
Mobile wallets are accessed through apps on mobile phones from anywhere in the world. They are convenient and easily accessible as well as allow fast transactions. However, the problem with mobile cryptocurrency wallets is that they may be the least secure wallets since mobile phones are not considered to be secure devices in general. They can be easily reached by viruses or keyloggers so storing cryptocurrency this way is not safe.
How to choose a safe and reliable cryptocurrency wallet?
When choosing an e-wallet to hold your altcoins, it is first of all important to understand the aim for keeping cryptocurrency. Some people would like to store digital cash for a long time, others prefer making transactions very often, and different wallets are good for different things. The most convenient and secure types of wallets are desktop wallets and hardware wallets. When you determine the type of the wallet you would like to use, choose the best and secure one of the existing ones.
Top 5 cryptocurrency wallets 2018:
Bitcoin Core is a desktop cryptocurrency wallet available for Mac, Windows and Linux. It is an original Bitcoin client developing with new releases. Bitcoin Core is very secure and effectively protects cryptocurrency from fraud. The e-wallet is not a multi-currency one, Bitcoin is the only available currency. It requires some technical knowledge and takes a lot of disk space.
Electrum is another desktop wallet, well-known for its effectiveness. It is easy to set up, fast and safe to use due to a special password preventing cryptocurrency stealing. The server does not have the access to users’ private key, which increases the level of reliability and security of Electrum. This e-wallet only supports Bitcoin, however, it has a forked version for Litecoin as well.
Ledger Nano S is a hardware wallet well-known for its low cost compared to other hardware cryptocurrency wallets. Also, it is small in size, thus easy to carry around. Ledger Nano S is designed for Bitcoin and Ethereum.
Trezor is another type of hardware wallets. Like Ledger Nano S, it is not very expensive but has the high level of protection against fraud. Trezor is considered to be the most trusted and reliable hardware cryptocurrency wallet capable of storing multiple cryptocurrencies. Using Trezor, you can hold Bitcoin, Ethereum, Litecoin, DASH, Zcash, and several other altcoins.
Exodus is a desktop wallet supporting Bitcoin, Ethereum, Litecoin, and more than 20 other altcoins. As it is not an open source, no bugs are built into the wallet. Exodus has a convenient beautiful interface enabling the easy use and fast transactions of cryptocurrency.
Cryptocurrency wallets help keep digital coins secure and protect cryptocurrency from stealing. Wallets differ in types, cryptocurrencies they support, the level of security and the difficulty of use. That is why it is important to choose the cryptocurrency wallet matching your expectations for convenient use.