Are you still holding your Bitcoin on one of the exchanges platform? Do you know that they can not guarantee that your money is safe? Don’t worry! Check out, which, online or offline Crypto Wallet is the best for you!
What is Crypto Wallet?
Cryptocurrencies, especially Bitcoin, have gained great popularity over the last several years. Today you can pay, or get paid with crypto in many places in the world. There is more and more online transactions using digital form of money. Bitcoin and other digital assets are fantastic alternative for the FIAT currencies, which value is going down every year.
Cryptocurrencies offer a great opportunity not only for trading, but investments as well. But we have to ask: “Are they safe?”. Last time the whole world heard about FTX – the second biggest crypto exchange in the world! Millions of users were trading and holding their money there. FTX collapsed, can you imagine how many people lost their money?
It happens that users of cryptocurrencies exchanges fall victim to hacker attacks, thereby loosing access to their accounts. Fortunately we can protect ourselves and keep our money away from danger, in a safe place. Every cryptocurrency is not the money in common understanding of this word, but a distributed, encrypted accounting system storing data on the state of ownership in a contractual currency.
A Crypto Wallet is a node of this system that is uniquely connected to other wallets. We have two kinds of wallets:
- Online – also called Software Wallet. An app you can download on your computer or mobile device.
- Offline – Hardware Wallet. It is a device, looks like a pen drive.
Which one is better? It depends on you. In both cases only the owner of the correct private key (password) has access to the funds of a given wallet, and it’s definitely the best way to keep your money safe
How does the Crypto Wallet work?
You need to understand how all the crypto assets work. It doesn’t matter, Bitcoin, Ethereum, TRX or any other coin, they will never leave the blockchain system. That means the Crypto Wallet is not storing your virtual coins, but it can give you access to the assets. It clearly indicates the owner of purchased cryptocurrencies.
Access to the wallet is protected by password. There is also an additional protection called Seed. It is a collection of words that allow you to regain to the currency in the case of failure of your device on which you store the money. For software wallets it could be an extra strong password, PIN or access key. Keep all that passwords in the safe place!
Crypto Wallet is not only the place where you can store your cryptocurrencies. They have more functions:
- You can buy your digital assets directly in wallet by credit/debit card
- Payment transactions – pay with Bitcoin or other currency
- Conversion crypto to another one
- Address book – you can add trusted crypto addresses to make quick transactions.
Each cryptocurrency has its own blockchain address. That’s very important. For example, if you want to send some Bitcoins from Binance to your wallet, you need to copy Bitcoin address from your wallet and paste it to Binance. For Ethereum and any other asset it will be different address! Remember that, otherwise you’ll lose your money!
Once you press Receive in your wallet, appropriate address is shown, so you can copy it. The same for sending money from your wallet. You’ll need to have the address of destination and paste it in your wallet in Send section. That’s it!
Offline Wallets
The safest way to keep your virtual assets safe is storing them on Hardware Wallet. It is a small device with LCD screen, that you connect to the computer via USB or Bluetooth. Some wallets work with mobile phones. Only the person who is physically in possession of device can have access to your money. That’s why this method is the best.
Once you get your wallet, connect it to your computer or mobile device via USB or Bluetooth and follow the instruction provided by producer. At this stage you need to generate a Seed key, that means the string of words, that will help you to regain access to your assets in the case of device failure. Sorted! Your wallet is ready to use!
Currently, the cryptocurrency wallet market is dominated by two companies: Ledger and Trezor.
Ledger has in its offer plenty of wallets, which are very popular among cryptocurrency users, especially Nano series. They are really good quality products that will surely serve you for a long time. There is a lot of useful information on the Ledger website where you can buy your wallet and get a support if you need. There are also discounts very often!
Trezor has two very good quality models in its offer. Cheaper Model One and more expensive Model T. On the official website you can compare the models and choose the best one for you. There are also accessories like cases available. Trezor online store works worldwide so you can buy wallets no matter where you are.
Wallets of both producers are the most recommended, verified by users all over the world.
Online Wallets
Software Wallets are alternative for hardware ones. The working principle is the same. There is just one difference. With online wallets all your assets stay in the Internet. That’s why the safest way to store your cryptocurrencies is definitely Hardware Wallet. Anyway the online one is still very good solution to protect your money.
Coinomi
Coinomi is one of the best software wallets. It’s very easy so even if you are a complete beginner, you won’t have any problems to operate it. It’s available as a browser version or a mobile app, no matter that you are Android or iOS user. Coinomi allows to store plenty of tokens and it’s currently integrated with around 1700 cryptocurrencies!
The wallet is easy to use and has a very high security level. Users passwords are stored within the device (computer or mobile phone), not in the cloud. That makes Coinomi really safe place for your money. In the case of device failure you can use recovery Seed, the same as in offline wallet. Even users IP is hidden in Coinomi servers. In my opinion – the best Software Crypto Wallet. You can get it for free.
Coinbase Wallet
This Crypto Wallet is created by Coinbase exchange producers. It’s free the same as exchange platform. Very good and popular wallet. It has a standard security system, but still very effective. Access is protected by PIN code or biometric sensor, but I recommend setting the two-factor authentication.
Unfortunately there is no live support. You can send an email, contact via social media or look for your answer in FAQ section.
Exodus
One of the most chosen Crypto Wallets. Works in your browser or mobile app is available for Android and iOS devices. Exodus allows transactions in many cryptocurrencies. Wallet is integrated with ShapeShift crypto exchange, but what is interesting, you can integrate it with Trezor hardware wallet.
Exodus has a modern look and it’s very easy to use so even a complete beginner will have no problems to operate the app. It’s also protected by Seed, that means the security level is high, but the two-factor protection is missing.
ZenGo
ZenGo is an alternative for other wallets considering the protection method. There is no privet key or seed, but manufacturers were focused on security based on biometric form. It’s not a secret that not everyone likes this method of protection, but there are many supporters as well.
ZenGo offers the Chill Storage service instead of seed. It is helpful to regain access to your assets in the case of any issue. Technical support is very good quality. You can talk to real person who answers very quickly.
This Crypto Wallet allows transactions with 30 cryptocurrencies only.
Is it worth?
Cryptocurrencies are more and more popular every day. They are a perfect alternative for traditional investments and give us a chance to multiply our capital. Unfortunately we noticed a lot of people who lost their money. One of the worst case was collapsing of FTX exchange, but also platforms had been hacked and people lost access to their money or accounts.
Fortunately we have Crypto Wallets and thanks to them we can keep our money safe. Hardware Wallet, also called Offline Wallet, are the best solution, because your assets stored on them are simply offline. But they are not for free. There is plenty of models, so everyone can choose the best one.
If you don’t want to buy a Hardware Wallet then Software one is alternative. They are free, but usually you’ll have to pay a fee for transactions.
You can ask: “so what I’m going to do? Just store my Bitcoin and that’s it?” No, let your money work for you. There are good crypto exchanges like Binance, ByBit, KuCoin and others. My strategy is to send some part of the asset to the crypto exchange and trade or stake it. As soon as you get the profit send it back to your wallet.
Binance and other platforms mentioned above are safe enough to multiply the money, so you don’t have to worry so much about the risk of loss, but it’s better to be 100% safe and sure that your funds are protected and nobody has an access to them.
Please let me know if you have any questions, I’ll be more than happy to help you. I also invite you to like my new page on Facebook “My Money Force” where you can chat with me anytime, comment my post or talk to other people and share your experience.
Kind regards,
Błażej
I have heard a lot about crypto wallets, but didn’t really know how it worked, or that there are two types of crypto wallets available. So I am very pleased that I came across this post, which I found to be very helpful and informative.
You mention that the safest way to store your crypto currencies, is with a hardware wallet. But what happens in the event of your hardware wallet being lost or stolen? I understand that one needs to generate a seed key in the event of failure of the device. But would the seed key then also be used in the case of a lost or stolen wallet? Thank you for clarifying.
Hi Line! If your wallet is lost or stolen, you need only to contact the support to get new one. Your money is secured by a strong password and seed, there is no chance that someone else can get access to your money
Thanks a lot for your explanation on the offline and online wallets. I have tried to understand the unique difference. You shed light on my grey areas. I just got started with the coinbase wallet. But I honestly need to learn the business. Kindly advise on verifiable sites where I can learn crypto. Although there are many tutorial points. I will appreciate your advice
Hi Parameter! Coinbase has a very good crypto wallet, so that’s a great choice if you are just beginning your journey with cryptocurrencies. My recommendation is to invest in crypto not more then 5% of your saving and concentrate on Bitcoin or Ethereum. You can read more in my previous articles about Mkneh management and online trading where I explain everything step by step.
Kind regards,
Błażej
This is a very informative article. I think that wallets are a much safer option that some of the crypto exchange platforms, but one must be careful with wallets. I had a wallet on my computer for a small amount of one alt coin and did not touch it for a year as it went up. When I went to access the wallet, I could not remember the password and could not find it where I normally store passwords. That coins are still in the wallet but unaccessible. I will always make sure I have my password saved in several places. This article has a great suggestion.
Hi Anastazja! Thanks for your comment! Yes, we have to be careful with the password, otherwise we can loose access to our own money.
Interesting. I didn’t know you can store your bitcoin offline. But one thing that comes immediately in mind is what happens if you lose your hardware wallet? Can the one that gets it to hack it? Or its content is safe no matter what? Also if you do lose it, is there any way to retrieve it?
Offline crypto wallets are the safest way to keep your money safe. Even if you’d loose your device, you can contact support and get your money back
After reading this article, I have learned that storing my cryptocurrencies on an online exchange platform is not the safest option. The article provides a clear explanation of what a crypto wallet is and how it works. I agree that having an offline hardware wallet is the best way to keep my virtual assets safe. The article mentions two reputable companies, Ledger and Trezor, that offer high-quality hardware wallets. However, for those who prefer software wallets, the article recommends Coinomi and Coinbase Wallet. I appreciate the detailed information provided about each wallet and its features. This article has been very informative and has helped me understand the importance of keeping my cryptocurrencies safe. I would like to ask the community in the comment section, What has been your experience with crypto wallets? Have you ever lost access to your account due to a hacker attack?
“Crypto Wallets: The Best Way to Keep Money Safe” on My Money Force discusses the importance of using crypto wallets for secure storage of digital assets. It highlights the risks associated with centralized exchanges and emphasizes the need for personal responsibility in safeguarding cryptocurrencies. The article explores different types of crypto wallets, such as hardware wallets, software wallets, and paper wallets, explaining their features and benefits. It serves as a helpful guide for individuals seeking to protect their crypto investments and encourages responsible practices in the rapidly evolving world of digital currencies.
Yes mate! The crypto wallets, especially hardware wallets are the best way to keep your money safe. Thanks for your comment Steve and I welcome you and invite to stay tuned as I’m going to publish more interesting articles!
Great post! I completely agree that cryptocurrencies offer exciting opportunities for trading and investments. It’s crucial to address safety concerns, and you’ve provided valuable insights on protecting our funds with Crypto Wallets. Hardware Wallets sound like an excellent choice for added security. Thanks for sharing this informative piece! I will share it with my friends.
Hello Liam! Thanks for your comment. The hardware wallet is always on the best way to protect your crypto assets. No one has an access to your money apart you.
Kind regards!
Hey Blazej,
Great Article. I attempted to dabble in the crypto currency world, but I was met with limitations over wallets and not knowing which way to go – hardware or online, I stepped away. It all seemed too much.
Your article has helped me hugely to understand the relevance of each type and weigh out the pro’s and con’s of each type.
Really useful and informative post, thank you.
Should I go there again, I now feel better informed.
Thanks very much