Have you considered buying cryptocurrency? If so, you’ve probably heard about storing your crypto in a crypto wallet.
But what is a crypto wallet and how do you use it? What are the differences among different types of crypto wallets and which is ideal for your needs?
Before you start buying crypto, you want to make sure you educate yourself on how a wallet works. If you don’t choose the right wallet, there’s always the danger of losing your crypto!
Here’s what you need to know:
The most common type of crypto wallet is the web wallet. This type of wallet allows you to buy, sell, convert, and trade crypto through a website.
It’s the easiest way to manage your crypto. It doesn’t require much knowledge of how crypto trading works and in many cases, you won’t have to worry about losing your Private or Public Wallet Address.
The main drawback, however, of web wallets is that they’re the most vulnerable to hacks. They also don’t protect your anonymity if that’s your main concern with using crypto.
The other option for holding your crypto is to use a hardware wallet. While not perfect, this is a safer option for protecting your crypto.
The main drawback is that it requires a bit more technical knowledge. It also requires more responsibility on behalf of the user.
With a hardware wallet, you’ll have to memorize your Private and Public Wallet Address. If you lose it, you can’t expect the company to provide a recovery of it.
Only you’ll know your wallet address so your crypto is safe as long as you don’t share it with others. But if you lose this key information you might not ever have access to your crypto ever again!
It’ll take time to set up your hardware wallet and to buy crypto. Transactions might be a lot slower in comparison to web wallets. However, the main advantage of this type of wallet is enhanced security.
How to Use Crypto
The deciding factor on which crypto wallet you should use is when deciding how to use crypto.
For example, do you mainly wish to use crypto as a form of currency? If so, you want to know how well a crypto wallet works with a crypto ATM such as Byte Federal.
You want to learn about how fast transactions are on the crypto wallet. This is crucial if you plan on converting, buying, or selling your crypto as often as possible.
If you wish to receive crypto as a form of payment you want to consider how often you want to verify that you’ve received your payments. Web wallets work a lot faster in this regard. But hardware wallets always have more security features.
Choose Your Crypto Wallet
Now you can decide on which type of crypto wallet works best for your needs.
This is one of the most crucial crypto tools available so you want to think carefully about what matters most to you.
If you favour convenience, then the web wallet works best. If you value security, you want to choose a hardware wallet.
Make sure you also consider the main reason you’ll use crypto for. Take your time to research the different crypto wallets that’ll work best for these tasks.
You can read more great content on crypto here on our blog.