Top 5 Best Cryptocurrency Wallets

Cryptocurrencies are also known as a virtual currency and digital money. They are not like the US dollar or any other major currency. In fact, cryptocurrencies are also not backed by any government but by the network on which it is being bought and sold. In a strict sense, they are nothing more than entries in a database. These entries can only be changed when a specific set of conditions are met. Special math helps to secure these currencies.

Each cryptocurrency is unique though many of them share a number of basic characteristics. For example, every cryptocurrency is irreversible. That means that after sending the cryptocurrency and after the network confirms the transaction, it cannot be retrieved. Also, cryptocurrencies are all unique and anonymous. 

When opening your wallet, you do not have to furnish an ID and hence your anonymity is assured. The nice part about using cryptocurrencies is they are very fast and can be accessed from anywhere on the globe. Even better, they are absolutely secure but their supply is limited by the network on which they are being transacted.

Why do you need a cryptocurrency?

People need a cryptocurrency because it is the right step when entering global trade in which everyone can be involved. It allows you to send money to any person anywhere on the planet and the best part is the transaction takes place almost instantly. Cryptocurrencies are available to everyone and they are changing the way we use as well as interact with our money.

Different types of cryptocurrencies

Bitcoin

There are many types of cryptocurrencies. Bitcoin is the best example of a cryptocurrency. It was the first cryptocurrency to emerge on the market. When using Bitcoin, it is possible to spend it in fractions – the lowest fraction being 0.00000001 BTC in a single transaction. Bitcoin is different because it is really bearer cash and is divisible up to eight decimal places with further divisibility being possible if required. The nice thing about Bitcoin is it charges very little to process a transaction.

Litecoin

Litecoin aims to provide the fastest processing speeds. Compared to Bitcoin, a Bitcoin transaction can be processed much faster. This is because it uses a simple Cryptographic algorithm which helps to generate blocks four times faster.

Ethereum

Ethererum is another type of cryptocurrency. The thing that distinguishes this cryptocurrency from others is the fact it applications are conducted on the Ethereum platform. In 2016, this cryptocurrency was split into Ethereum or ETH and Ethereum Classic or ETC.

Cash

There is also a cryptocurrency that goes by the name of Cash. This cryptocurrency was only launched late in the year 2016 and it is different in that it requires sue of specific proof to secure the network.

Ripple

Ripple is another major cryptocurrency though it is not like the average cryptocurrency because it is possible to obtain Ripple without first buying the currency from an exchange. It is also backed by some banks and financial institutions and it does not require any mining as is the case with other cryptocurrencies like Bitcoin.

When to use a particular cryptocurrency.

The right time to use a particular cryptocurrency is when its value is right. Each day more and more retailers are adopting the payment in cryptocurrency. The more people are able to purchase with crypto the more widely the currency will be adopted.

Different types of cryptocurrency wallets

There are five cryptocurrency wallets that stand out from the rest. These include the desktop wallet, online wallet, mobile wallet, hardware wallet and paper wallet. Each has its own set of benefits and drawbacks. Here is a look at each of these five best cryptocurrency wallets.

Desktop wallet

A desktop wallet is one that is first downloaded and then installed on your desktop or laptop. This kind of wallet can only be used on the desktop or laptop on which it was downloaded and installed. It is also a very secure wallet but the risk is when your device is hacked into or is infected by a virus. At such times, you can lose all your funds.

Online wallet

The online wallet works on the cloud and is accessible from any device from any location. This wallet is very convenient and it also stores your private keys online. However, it is controlled by third parties and so is more vulnerable to hacking and theft.

Mobile wallet

Mobile wallets operate on a mobile device and is an ideal option because you can use your mobile wallet at any retail store that accepts cryptocurrencies. These wallets are smaller in size and they are also easy to use.

Hardware wallet

Hardware wallets are not the same as software wallets because your private keys are stored on a hardware device such as a USB device. This wallet does allow you to transact online but is stored offline and hence is more secure. Hardware wallets work well with different web interfaces and can support a variety of cryptocurrencies. It is also a wallet that allows you to transact easily. Just plug your device to a computer that is hooked to the internet and enter your pin. After that you can send currencies and confirm your transactions. This wallet makes it easy for you to transact and it also allows you to keep your money offline and hence is much more secure.

Paper wallet

This is perhaps the easiest wallet to use and it is also very secure. Though by definition, you may think of a paper wallet as one that is kept on paper, in reality it can also be any software that you use to create pairs of keys which you can then print. This kind of wallet is very straightforward to use and it makes it easy for you to transfer your cryptocurrency like Bitcoin from your software wallet.

Recommendations on the best type of crypto wallets

So, which cryptocurrency wallet should you use? There are several factors that need to be considered when choosing your cryptocurrency wallet. Cost, security, mobility, user-friendliness, convenience and style must all be taken into account before choosing a particular wallet. Mycelium is an option worth checking out in more detail. It offers good privacy but it is not very secure and is also not good for beginners. The same can be said about Bread wallet that is simple and is easy to use. 

However, it lacks a desktop or web interface and does not have many features. It is also a hot wallet and hence is not very secure. Ideal for day to day transactions. Jaxx is a mobile wallet that has multiple cryptocurrencies. It has an excellent user interface. But it can be slow. Ideal for those who want to transact cryptocurrencies on their mobile phones.

Trezor is a hardware wallet that is ideal when you wish to store large amounts of cryptocurrencies. It costs about 99 dollars and is great for sending bitcoins.

Ledger Nano has a wonderful feel and offers third party apps as well as U2F support. It is also inexpensive but does not allow you to create hidden accounts and it also lacks a password manager.

Conclusion 

There are a good number of cryptocurrency wallets out there that you should think about using. Ledger Nano is a hardware wallet that is loaded with features which you won’t find in other cryptocurrency wallets. This wallet is highly recommended because its size makes it most secure from hackers and thieves. It comes with a built-in display, is easy to operate and is highly secure and comes with backup and restoration. It has been voted the best cryptocurrency wallet for 2018. So, if you need a secure wallet, be sure to choose Ledger Nano.