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February2018
How to choose a cryptocurrency wallet: types, developers, safety

How to choose a cryptocurrency wallet: types, developers, safety

If you choose to buy cryptocurrency, make sure it does not fall into the hands of hackers. Therefore, you need to decide on the way of storage and check for the safest service. Today we will dwell upon the types of repositories and name the best cryptocurrency wallets.

Why you should not store coins on exchanges

Some users prefer storing cryptocurrency on exchanges. It is quite justifiable, but only in case you are a trader that actively buys and sells coins. If you just converted a part of your savings in a cryptocurrency and decided to leave funds on the exchange – that is not the best storage method.

Exchanges are centralized, meaning vulnerable to hacking attacks, so in 2017, hackers assaulted some major exchanges such as BTC-e, Bithumb, and Liqui. According to Coindesk, losses of users are estimated at millions of dollars. Therefore, people that do not run cryptocurrency transactions regularly should check on wallets that are more reliable.

How to choose a cryptocurrency wallet: types, developers, safety - 2

Coindesk reports that hackers have stolen millions of dollars in cryptocurrency from users in 2017.

Wallet types

Cryptocurrency wallets are divided into hardware (individual devices that look like a flash drive and store virtual currency outside computer) and software (special programs and applications installed to your device).

Storing on a flash drive or a computer not connected to the Internet is the safest – that’s how European crypto millionaires store Bitcoins. It’s good for those who make long-term investments and don’t plan conducting regularly operations with coins. When choosing this storage method, remember that you should delicately handle your flash drive and keep it at a reliable place, better in a safe box.

Software wallets can be classified by their operational principle: online, mobile, browser, and desktop. Online storage is convenient (your funds are accessible from any device; you don’t need to install additional software), but the least reliable: similarly to exchanges, fraudsters can gain access to your money.

Installing a cryptocurrency repository to your computer or phone is a more sustainable solution. The choice depends on what you find to be handier and which device is less exposed to other people. Most of wallets, developed in 2016-2017, are universal, containing both a mobile and a desktop version. Today most of repositories are intended for different cryptocurrencies, though specialized wallets are also available, for instance, Ethereum or Bitcoin wallets.

How to choose “your” wallet

After you choose the appropriate wallet type, thoroughly consider several of them and give preference to the safest and most convenient. We have prepared a list of criteria common for truly reliable service.

  • Storing of keys at the user’s side. Some services delegate the task to third parties, which is risky.
  • Two-factor authentication (request for two types of data for authorization).
  • Multisignature (several secret keys provide access to data).
  • HD wallet – an option that simplifies the management of several wallets on the server.

All these options are included into the wallet description (if they are available). An ideal blockchain wallet has all of them, but not all developers take such a deep approach to security. Therefore, try finding a wallet that offers most of those features.

How to choose a cryptocurrency wallet: types, developers, safety - 1

A mobile cryptocurrency wallet will be an ideal match for those who don’t go anywhere without a smartphone.

Best wallets according to professionals

You will find reviews of different software wallets and articles that offer top services on the web. We have prepared a short summary for you, basing on several competent sources.

Best wallets according to Blockgeeks

  1. Coinbase (online wallet);
  2. MyEtherWallet (online);
  3. Jaxx (browser and mobile);
  4. Electrum (desktop and mobile).

Best wallets according to disruptordaily.com

  1. Coinbase (online wallet);
  2. StrongCoin (hybrid);
  3. Exodus (online);
  4. Jaxx (mobile and browser);
  5. Mycelium (Android app);
  6. Electrum (desktop).

Three best Internet wallets according to the authors of Ripple

  1. Coinpayments (online, increased protection against hacking attacks);
  2. Jaxx (mobile and browser);
  3. Exodus (online).

After you read the reviews, you can rely on the opinion of one of the expert teams or make a choice by learning the functions of every repository.

 

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