If you are actively involved in cryptocurrency , it goes without saying that you need a place to store your inventory. This applies regardless of which cryptocurrency you have invested in.
Cryptocurrencies can not be stored in the same way as our physical means of payment (coins, banknotes and debit cards), which very many people keep in a physical wallet. Since cryptocurrency is a digital currency, ie not physical money you can hold in your hand, you have to have a digital wallet . This is called a cryptocurrency wallet.
In this article, we will take a closer look at the factors that should be emphasized when choosing a cryptocurrency wallet, as well as 5 cryptocurrency wallets that have proven to be very popular among most people.
Important factors when choosing a cryptocurrency wallet
Those who operate cryptocurrencies know how difficult it can be to decide which cryptocurrency to invest in. In fact, it can be just as difficult to choose a cryptocurrency wallet to store your holdings after investing.
Choosing which cryptocurrency you want to invest in and which cryptocurrency wallet you want to store your holdings in is anything but easy. These are actually quite complicated processes, and below we will take a look at the factors that characterize a good cryptocurrency wallet.
How much cryptocurrency do you have?
The first question you should ask yourself is how much cryptocurrency do you have ? Are you an active investor again and again, or have you bought a small stock just for fun?
If the stock to be stored in your wallet is large, then you should be looking for a cold wallet. Such a wallet is called, for example, a hardware wallet. But if you do not have that much cryptocurrency, then a hot wallet can do.
What separates a cold wallet from a hot wallet is that a hot wallet is usually free to use. Therefore, this cryptocurrency wallet will probably pay more for those who do not engage in cryptocurrency very actively.
The wallet should be able to store different cryptocurrencies
Again, this is most important for those who actively engage in cryptocurrency. Maybe you own both bitcoin and ethereum? Unless you want to store them in different wallets, you are dependent on a wallet that can store different cryptocurrencies.
Not all cryptocurrencies can be used to store all types of cryptocurrencies. Therefore, it is very important that you double check this if investing in cryptocurrency is a big hobby for you.
How does the player view privacy?
If you are an active (and well-known) crypto investor, and people know that you possess large amounts of cryptocurrency, then you may be the perfect target for a possible theft . In that case, you should choose a crypto wallet where the player really takes privacy seriously.
Cryptocurrency is characterized by the fact that all transactions take place on a blockchain that everyone has access to. In other words, the block chain is open. Therefore, privacy is extra important, because there are two different things that the blockchain is open and that privacy is not handled in a good way.
In practice, this simply means that you should stay away from crypto wallets that request personal information. This is a clear sign that you should continue your search – because this is not the wallet that suits you.
What happens if you lose your key?
In connection with cryptocurrencies and cryptocurrencies, there is a strong focus on the importance of keeping the keys to the wallet in a safe place so that you have the keys (ie the public key and the private key ) available at all times when they need it.
You will also hear that the private key is only for your eyes. This is not information to be passed on to anyone else. If the key against suspicion should go astray, then you have more or less thrown money out the window. There is virtually no way to get your crypto wallet and inventory back. Or is it?
There are different wallets, and not just cold wallet and hot wallet. In recent years, something called multisig wallets has also emerged, and this is a type of wallet that is recommended if there are several owners of the cryptocurrency. Then it is natural to share the login information with another person.
With such a wallet, there is also no danger if the key goes astray. This wallet can be used in a way that allows you to still have access to your inventory even if the key goes astray.
The price of the service
When you store your holdings of cryptocurrency in a cryptocurrency wallet, it is an actor who is doing you a favor. This applies whether the player has an active role in the storage or it is you who does most of the work yourself.
But there are no such services that are free. And what is a good price for the service, depends entirely on how much you should keep in your wallet. As mentioned further up, if it’s just a small stock then it is not certain that you will find any good arguments for spending a lot of money on a crypto wallet.
If you are only going to store a few hundred bucks, then it may be a good idea to look for a provider that offers their services for a very low price or nothing at all. There are free crypto wallets, so it is not impossible to find it!
Popular crypto wallets
There are several crypto wallets on the market – many more than we have an overview of.
It is also not to be underestimated that some of them are more popular than others. In practice, this means that these cryptocurrencies have several of the factors we looked at above.
Below we will get a little better acquainted with five of the most popular crypto wallets available today.
Trezor T is a good choice if you have invested in one of the most popular cryptocurrencies, such as Bitcoin or Ethereum. In addition, the Trezor T can be used to store tokens, if this is something you invest in.
This is a crypto wallet that many crypto investors have become very fond of, precisely because it is considered as secure as it does. No matter what your computer is exposed to, this crypto wallet is considered secure.
With this service, you only need the seed phrase if you should be so unlucky as to lose your access.
Here’s how Trezor T works:
Ledger Nano X
Ledger Nano X is another crypto wallet that is considered a hardware wallet. However, this is a little cheaper than the Trezor T, because this crypto wallet is 300 kroner cheaper than the Trezor T. The Ledger Nano X therefore costs 1200 kroner.
Ledger Nano X is in line with the Trezor T in several other areas. In addition to the fact that it is the same type of cryptocurrency, and the price is relatively similar, it can be used to store different types of cryptocurrency. Ledger Nano X is compatible with approx. 100 cryptocurrencies.
This is also a crypto wallet that is considered safe among most people. And since this is also a hardware wallet, it is possible to use the seed phrase to gain access if the accident should occur and you lose access.
Here’s how to get started with Ledger Nano X:
Ledger Nano S
Ledger Nano S is a service provided by the same player as Ledger Nano X. But if you compare these two, it is without a doubt Ledger Nano S which is the cheapest service. This is a hardware wallet that costs 600 kroner – which is half the price of the Ledger Nano X.
Ledger Nano S supports over 1,500 cryptocurrencies, and you get the option to store between 4 and 18 different cryptocurrencies in your wallet at the same time. It is without a doubt a very good deal!
This is a service that can be used on virus-infected computers, and that they are very helpful if recovery is necessary.
Ledger Nano S is a delicate little thing:
Trezor One is the predecessor of Trezor T. This is also a hardware wallet, and in terms of price it is at the same level as Ledger Nano S. It is thus a relatively affordable service.
Trezor One joins the ranks of services that offer good deals in terms of compatibility and storage of cryptocurrencies and recovery if you lose your private key.
Trezor One is popular for storing cryptocurrencies:
The fifth and final crypto wallet we are going to take a look at is the Electrum crypto wallet . This is also a very popular crypto wallet, and one of these reasons is that it is free to use.
In addition to being free, this is a multi-purpose cryptocurrency wallet, which means that it can be used by more people in situations where more people have spliced into investing in cryptocurrency.
A small disadvantage with Electrum, however, is that it has been developed with Bitcoin in mind. This means that this is a crypto wallet that is best suited for those who have invested in Bitcoin – and not any of the other cryptocurrencies.
Electrum is also a popular storage method: