Top 7 Bitcoin Wallets: How to Keep your Cryptocurrency Safe
Protecting cryptocurrency isn’t always easy, especially when you have high returns and a growing wallet.
However, it can be accomplished with the right cryptocurrency wallet. You see, the best way to store cryptocurrency is not in a conventional bank account.
There are ways to store your cryptocurrency without it losing value and in a safe place.
It’s called a cryptocurrency wallet and it is a secure place to store, send and receive digital currency in the form of Bitcoin and others.
Many people already have an official wallet but if you use cryptocurrency, you should shop around for the best way to store and use your money.
What is The Most Secure Cryptocurrency Wallet?
Simply put, a cryptocurrency wallet works as software. Designed to help users view their balance and make transactions, each wallet is used for a specific cryptocurrency.
Security then is directly linked to getting the right kind of cryptocurrency wallet for the specific type that you need.
7 Best Cryptocurrency Wallets
Using a cryptocurrency wallet is the best way that you can keep track of your money.
While using the software you can also learn ways of how protecting cryptocurrency can get the most out of your investments.
Using These 7 Best Cryptocurrency Wallets Is a Good Place To Start
1. Desktop Wallet
The most common type of wallet can be referred to as a desktop wallet because it is on your computer.
Also known as a “desktop,” you may remember this term from computer class.
This term can also be used to describe smartphone apps that work as cryptocurrency wallets.
2. Mobile Wallet
Today, smartphone apps that work with Bitcoin and other cryptocurrency use this term to describe a typical coin trading application used on smartphones and other mobile digital devices.
3. Full Node Wallet
What if you could control your private keys while also hosting a full copy of the blockchain?
Imagine a cryptocurrency wallet that offers you just that while also using every coin type.
Essentially, that is what a full node wallet is. This cryptocurrency wallet works easily because every coin has an official wallet of this type. Usually there is also a link on the website.
4. Custodial Wallet
Some cryptocurrency wallets do not allow you to control your keys directly.
Known as custodial wallets, most exchanges function this way. Using a wallet that allows you to control your private keys is also optional.
However, that is in direct contrast to a custodial cryptocurrency wallet.
5. Online Wallet
This refers to any cryptocurrency wallet that works using the Internet. The online wallet is completely web-based but you don’t have to download an app.
The online wallet is data hosted on a server (real or virtual) to offer a trading platform you can use.
Some online wallets like this allow encryption of private data, making it somewhat of a hybrid so you can send data online without worrying about security.
6. Hardware Wallet
Specifically designed to hold cryptocurrency and keep it safe, hardware wallets are able to go online to make transactions.
The devices include USB devices, along with others that gather data, make transactions and then are held offline for security.
7. Paper Wallet
This is a type of printed QR code for public and private keys. Using a print out of the code lets you send and receive cryptocurrency using a “paper wallet.”
This option allows users to avoid digital storing of cryptocurrency by creating a paper copy of the data.
Is it Safe to Leave Bitcoin in Coinbase?
Bitcoin is just one name for cryptocurrency. Coinbase is a type of custodial wallet where beginners can learn more about their cryptocurrency including where to keep their funds, exchange and other tips on how to work within the network and its functions.
For new users, Coinbase is one of the safest cryptocurrency software networks to use.
It allows users to store a variety of Ethereum-based tokens for more freedom and flexibility in your wallet.
Is Coinbase a Cold Wallet?
Understanding what a “cold wallet” is first means that you need to know the definition of a “hot” wallet.
This describes a cryptocurrency wallet with a live connection to the world wide web.
Without a connection to the internet a “cold wallet” is simply hardware, unplugged in a safe place.
In a cold wallet, the cryptocurrency you want to hold cannot be attacked by hackers due to the off-line status of the device.
With more protection than a hot wallet, a cold wallet lets your mind rest knowing the wallet cannot be hacked.
Can I Use Coinbase As a Wallet?
Beginners looking for a cryptocurrency wallet that works for them can use Coinbase.
Most people prefer Coinbase as a cryptocurrency wallet because it offers one of the most user-friendly networks.
The software itself is ideal for beginners as it allows you to exchange Bitcoin wallet, Ethereum wallet, Litecoin wallet and Bitcoin Cash wallet all in one platform.
Over time, users who master Coinbase can start using GDAX and other exchanges like Bittrex, Binance or Kraken.
What is the Best Way to Store Cryptocurrency?
Using one of these 7 cryptocurrency wallets is the best way to keep your money safe.
However, you may realize over time that during trading your cryptocurrency could be stolen. Internet hackers are real and they have been known to develop sophisticated ways to take your money.
For this reason, using a cold wallet may help to protect your cryptocurrency while you are not actively connected to the Internet.
When storing your money in a cryptocurrency wallet, try out one of these best 7 ways to store cryptocurrency.
Then, consider the process of building a network from the bottom up.
If you are a beginner, starting your portfolio with Coinbase may be a good idea as many financial analysts say it is the easiest software to use.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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