In this article, you’ll get to understand; what are crypto wallets?
How do they work?
Categories of crypto wallet.
Top 5 best crypto wallets for you.
Let’s get right to it!!!
Crypto wallets store crypto. If you have invested in cryptocurrencies, it is beneficial to store them in a wallet.
Wallets are an ideal gateway to blockchain-based crypto applications. With wallets, you can store digital assets like crypto tokens, NFT, etc.
They allow you to access your cryptocurrency from anywhere all over the globe, making it more secure and easily accessible. So it’s like having your bank with you anywhere you go.
What is a crypto wallet?
A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets. As with conventional currency, you don’t need a wallet to spend your cash, but it certainly helps to keep it all in one place.
When a user gains cryptocurrency, such as bitcoins, she can store it in a cryptocurrency wallet and, from there, use it to make transactions.
A crypto wallet is used to interact with a blockchain network.
In reality, crypto wallets don’t store the currency but act as an interaction tool with the Blockchain, i.e., generating the information to receive and send money via blockchain transactions.
So you can see wallets as an interface that helps you communicate with the Blockchain.
How do crypto wallets work?
When interacting with a crypto wallet for the first time, the wallet generates a seed phrase string of 12 to 24 words. We recommend that users write this phrase in a safe location since it stores all the information needed to access their wallets and funds.
I want to interact with the Blockchain using a wallet, I.e., sending a crypto token to your wallet. I am not transferring any coins, just giving away ownership of the tokens assigned to my wallet address.
So basically, I’m confirming that the crypto tokens on the Blockchain no longer belong to my address but yours.
Wallets comprise pairs of private and public keys.
The private keys are never to be disclosed, as we can use them in any wallet for accessing cryptocurrency. As long as the private key is known, funds are accessible from any device.
The public key is a string of letters and numbers automatically generated by the crypto wallet provider. With the public key, you can view the contents of a wallet, i.e., the number of crypto tokens currently in the wallet.
Based on these keys, an alphanumeric identifier called address is generated.
This public key, private key, and the generated address are unique for every wallet.
The generated address specifies the location where we can send and receive coins on the Blockchain.
Categories of crypto wallet.
Hot Crypto Wallets
Hot wallets are digital tools whose connection to the internet cannot be severed and thus are less secure and pose more risks than the seed phrase; they store private keys online but are user-friendly.
Hot wallets are more likely to be used for daily transactions and can be accessed/used on various devices to monitor your currencies.
The greatest advantage of hot wallets is their convenience. Your public and private keys are stored and encrypted on your wallet’s app or website, so you can access them anywhere with an online connection unless they’re limited to a specific device.
This ease of access makes them ideal for those who trade more often. Examples of hot wallets include metamask, coinbase, cryptX, and so on.
Cold Crypto Wallets
We store cold wallets offline and don’t require internet connectivity. Thus, improving security and less risk.
We deliberately designed cold storage wallets to be hard to hack. Unless the wallet owner falls for some phishing attack, hackers have no way of obtaining the owner’s keys remotely.
They are more likely to be used for more long-term holdings. Examples of cold wallets include ambire, ledger nanox, trezor model T, cool wallet pro, and so on.
Top 5 best crypto wallets for you.
MetaMask
MetaMask is a non-custodial and mobile crypto wallet that mainly serves the Ethereum ecosystem. However, it can also be configured to access other blockchains.
Because it is non-custodial, it lets users safeguard their identity while still interacting with Ethereum-based apps.
It enables users to transfer and store cryptocurrencies that adhere to the Ethereum standard format, known as ERC-20, and perform transactions to any Ethereum address by default.
Ambire
Ambire wallet is the first non-custodial smart crypto wallet with email authentication. Developed with a keen UX focus to engage on multiple networks, it places the user in the driver’s seat.
Ambire Wallet offers its users many features like human-readable messages, secure email/password login, account recovery, transaction parsing, integrated Defi protocol, and much more.
Besides that, early wallet users can benefit from an ongoing airdrop of Ambire’s native WALLET token.
Coinbase
This is the world’s most popular way to buy and sell bitcoin, Ethereum, and bitcoin.
Coinbase wallet allows you to store your private keys locally, send, receive, spend digital money, browse and use Defi applications, etc.
You don’t need a Coinbase account to use Coinbase Wallet.
ZenGo
It is a simple and secure crypto wallet. Buy, trade, and earn up to 8% APY on BTC, ETH, and more, including 70 of the top cryptocurrencies.
Enjoy bulletproof security and legendary customer support.
ZenGo has a three-Factor authentication process that ensures:
- No one but you can control your crypto
- They backed your wallet up, so even if you lose your phone, you can recover your crypto through a simple two-step verification process.
Here’s the best part: there’s no password to remember – or forget. No private keys to store – or lose.
ZenGo recognizes that people often represent the weakest part of a security matrix, and we’ve built that into the wallet’s design. It’s magic and a lot of advanced cryptography.
CryptX Wallet
CryptX Wallet is an enterprise-grade operational wallet with strong security features. It supports over 100 coins and uses a user-friendly interface to handle multiple coin balances.
It is ideal for users who accept diverse coins, need to manage liquidity, and hedge against volatility. Its primary feature is the ability to swap coins nearly instantly.
Its Auto Swap feature lets wallet holders set up rules that trigger coin swaps whenever balances hit minimums or maximums.
Bottom line
We cannot overemphasize the value of wallets, as it has created a way for crypto users to store their crypto securely and optimize transactions on the Blockchain.