If you are seeking a reliable and user-friendly cryptocurrency wallet, take your time to understand how crypto wallets work and what you should pay attention to when choosing a wallet for crypto trading or exchange.
What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a software program for sending and receiving digital currency. The public and private keys that are stored there fulfill interaction with various blockchain technologies that are used by the platforms working with cryptocurrency. So if you have in mind making some operations with Bitcoin or any other cryptocurrency, getting a crypto wallet is a must.
How do crypto wallets function?
Nowadays the number of people using crypto wallets amounts to several million all over the world. Despite the popularity and the widespread use of the digital wallets, many people still have vague ideas about the way they function. Actually, the crypto wallets do not store currency anywhere in any physical form. The records of transactions in blockchain are, in fact, everything that exists. The crypto wallets enable not only sending or receiving cryptocurrency, you can also check your balance and perform some other operations.
Actually, sending a cryptocurrency is signing off ownership of the coins to the wallet’s address of the recipient. If you want to spend the funds in your wallet, you need to unlock them with your private key which must match the public address the currency is assigned to. As soon as private and public keys match, the balance in the recipient’s wallet will increase and in the senders account it will decrease. In reality, there is no movement of digital coins from one crypto wallet to another. In fact, the transaction is nothing more than a record on the blockchain which results in the change of the balance in the crypto wallet.
Now let’s point out all important factors to consider when selecting a crypto wallet:
1. Type of the wallet
The way to store and access cryptocurrency determines the type of the wallet. There are 3 major groups the wallets can be divided into hardware, software and paper. In their turn, software wallets fall into desktop, mobile or online. Let’s take a closer look at each of the wallets’ types.
While wallets aren’t tied to the actual identity of a user, all transactions are stored publicly and permanently on the blockchain. Your name or personal street address won’t be there, but data like your wallet address could be traced to your identity in a number of ways. While there are efforts underway to make anonymity and privacy easier to achieve, there are obvious downsides to full anonymity.
In general, transfer fees are a little small fraction of traditional loan company fees. Sometimes fees have to be paid for certain types of orders to network miners as a control fee, although some transactions haven't any charge by any means. You can also arrange your own charge. As helpful information, the median deal size of 226 bytes would cause a cost of 18,080 satoshis or $0.12. In some instances, if you opt to set a minimal fee, your deal gets low concern, and it's likely you have to wait time or even times for the purchase to get affirmed. If you want your deal completed and validated promptly, then you may want to raise the amount you're eager to pay. Whatever finances you wrap up using, purchase fees aren't something you should be anxious about. You can either pay minuscule business deal fees, choose your own fees or pay no fees whatsoever. An absolute improvement from days gone by!
4. Ease of use
No need to explain why the interface of a crypto wallet is important. If the site structure is clear and simple, and all necessary tools are a click away, the chances for confusion are low and the time to find your way around the site is minimal.
Keeping your coins safe is crucial for any trader, as noone wants their assets to be at risk. That is why you need to ensure a crypto exchange you plan to join uses reliable security mechanisms. Email encryption and verification, the presence of 2-factor authentication and possibility to keep deposits in cold storage are good signs that witness of proper security measures undertaken by a digital currency exchange.
6. Customer support
The value of responsive and professional support cannot be underestimated. In case of any problems that may arise during the verification process, exchanging, buying or selling cryptocurrency, any issues with technical performance, the availability of helpful support representatives will save your time and nerves.
If you want to enter the crypto world joining a right crypto wallet will be your key. As any activities with digital currency involve risks, make sure you the platform you choose meets your requirements to safety, usability and any other points that are important for you.