It is usual for new users to have doubts about the best option when choosing a digital wallet to protect their crypto assets since there are currently dozens of wallets that offer various extra services to their users.
And it is that although this doubt seems unimportant, it is a familiar doubt that, at some point, all cryptocurrency enthusiasts will have; With the increase in the catalogue of available cryptocurrencies and tokens, having a good wallet or at least a wallet that is well-oriented to our assets and needs is of vital importance, since this is the tool that helps us manage our coins and protect them.
A wallet or crypto wallet is one of the most used tools when you have some savings in cryptocurrencies since these applications serve as the containers of the private keys and the public keys of an address in any blockchain network, which allows the owner of this information to carry out the deposit or withdrawal transactions at their convenience.
Many enthusiasts do not know that not all people need a single type of wallet and that different accounts can be created in other cryptocurrency wallets. Still, to reach this conclusion, it is necessary to carry out our analysis to know what we want to do within the crypto ecosystem or think about our investor profile. Thus, with these premises, we can have a clearer picture of our ideal wallet.
It should be noted that another important point to take into account when choosing the main wallet for our cryptocurrencies is the compatibility with different types of blockchain networks that it supports since it is currently very typical to see wallets that allow storing cryptocurrencies and tokens of other standards, thing that in the first years of development of the cryptosystem did not exist.
To guide our users and readers to have a better approach when choosing their wallet, at MegaAcademy, we have compiled the five best tips or advice that every user should take into account when selecting their purse:
It is one of the first things you must consider when selecting a particular wallet; knowing and being aware of what we want to do with our cryptocurrencies dictates a lot about the type of virtual wallet that we will need.
Whether we want to invest in cryptocurrencies, use them as a means of payment or as an asset for other activities such as sending remittances.
For example, if we want to use our cryptocurrencies as a means of investment, we opt for an investment strategy such as Hold (obtain cryptocurrencies at a low price, store them for long periods and then sell them). It is advisable to use a wallet. Physical if the amount to invest is high, or a virtual wallet that gives you immediate access if the amount to finance is not very important.
On the other hand, some people require a wallet to trade or make payments online. This, type of user, the use of the wallets offered by the exchange platform is recommended, or it is possible that you can also use a virtual wallet browser or a crypto wallet app for smartphones.
Perhaps the first point to take into account when choosing a wallet is to know how much we are willing to store inside a virtual wallet; Let’s take our real money as an example, when we obtain a considerable amount of money, we most likely want it to be in the safest place, and as a precaution, we store it in a bank.
The same thing happens in cryptocurrencies; if we store a considerable amount of cryptocurrencies in a wallet, the best thing is to protect them in the most secure wallets. Currently, these are physical or hardware wallets. They are also known as Cold wallets since they almost always remain disconnected from the internet. Suppose we will only have a few cryptocurrencies and will always move them or make transactions with them. In that case, the ideal is a virtual wallet stored on a computer, on a smartphone or as an extension of a browser, and there are very safe options that offer the plus of comfort when making a transaction.
The crucial point is to know and select a wallet that offers and provides the necessary guarantees to have a secure wallet, and at this point, the volume level that we will store in our wallet plays out again.
For example, suppose we have a considerable monetary amount in cryptocurrencies. In that case, the ideal and recommended thing is always to use a physical wallet or cold wallet since they are, so far, the safest storage system and have all the security features that any cryptocurrency wallet requires cryptocurrencies.
Now, if in our wallet, we will only have an amount stored that is not exaggerated, perhaps it is best to use a virtual browser wallet or one that works as an application for your computer or smartphone since it will give you more versatility in your transactions. But they are virtual does not mean you will dismiss security. You always have to look for a wallet that offers you a backup or recovery system with computer security certifications. In the case of browser wallets that work with the design of HTTPS, that guarantees that the information will be sent in encrypted form.
Another relevant point is the need to use extra tools in a wallet; for example, today, there are wallets with additional services apart from the protection of cryptocurrencies. We can find virtual wallets that allow conversions between different currencies, use various sending networks to achieve lower commissions or something as simple as a graphical interface that will enable you to visualize better and manage your cryptocurrencies.
It is perhaps a point that almost nobody takes into account, but that, in the long run, becomes evident because, as users, we must take into account how often we will be using our wallet because perhaps many people find it a bit uncomfortable to use a physical wallet. To be doing many transactions a day.
This is why virtual wallets stored on other devices, such as smartphones or computers, are usually so popular and are constantly developing their security systems to attract even the most demanding and cautious users.
This is because, within their internal hardware, they have a specialized encryption chip that is responsible for encoding all the information that enters the wallet. Also, its operation makes it safer than a virtual wallet since, most of the time, it is not connected to the internet, making it unhackable, and it only connects when making transactions.
This is because they are stored on devices that all users regularly use, such as computers or smartphones, or we can also find them in web browser extensions, which make them widely used due to their easy access. Even though physical wallets are the safest today, these virtual wallets are also the safest; only the security levels of one cannot be compared with the other.
It is mainly because, unlike virtual wallets, physical wallets have a higher acquisition cost, being a barrier to entry for users who do not require it. Perhaps it is also because the vast majority of users of Cryptocurrencies do not handle very high amounts within their wallets, another cause of the limited use of physical wallets.