When someone says wallets, a pocket-sized flat folding case that holds fiat currency comes to mind. Cryptocurrency wallets are not such tangible cases. They are a software program that stores private and public keys, enabling crypto users to move their digital assets, check their balance, and perform other operations.
How a Crypto-Wallet Works?
The new entrants to the crypto-universe have to download and install a digital wallet on their mobile phones or desktops if they want to become active crypto-users. They are very much needed to buy and sell crypto assets. For example, a buyer must first sign up for a Bitcoin wallet — which acts as a depository — to buy bitcoins from a crypto exchange using a credit card/debit card or bank transfer. The buyer then stores the cryptocurrencies in the wallet, just like bank customers store their fiat currencies in a bank account.
In addition to the mobile wallet and desktop wallet, there are two more types of wallets: the web wallet and the hardware wallet.
- Desktop Wallet: Crypto-users can download and install the desktop wallet on their laptop or a PC. They can only open it on the same computer where they have installed it.
- Mobile Wallet: It is in the form of an app that is installed on a smartphone, and it can be accessed from anywhere. It is much simpler and portable compared to a desktop wallet.
- Web Wallet: This wallet runs on the cloud, therefore a user can access it from any device and any location.
- Hardware Wallet: Is offers users the option to store their private key on a USB. The transactions are done online, but the private keys are stored offline. The hardware wallet is compatible with a range of web-based interfaces.
How to Select a Crypto Wallet?
For first-time crypto buyers, it can be a real challenge to figure out which crypto wallet to use. When looking for the right wallet, they should weigh the pros and cons of all the available options for a specific cryptocurrency and sign up for the highly secure one. If users intend to buy Litecoin, they should pick the wallet that can store Litecoin.
All the four types of wallets, the desktop wallet, mobile wallet, web wallet, and the hardware wallet, have their pros and cons. The desktop wallet is secure if users have downloaded it on their laptops and computers, and only they can access it.
But, it is vulnerable to attacks from malware, spyware, and viruses, which enable criminals to steal digital assets. The mobile wallet is the best wallet for face-to-face transactions, and it offers the advantage of seamless transactions. However, there is the risk of users losing all their digital assets in case the device gets lost or damaged.
Wallets that run on clouds offer users the benefit of easy access, and there is no risk of users losing their digital-assets if the device gets damaged or lost. However, as the wallets are hosted by third-parties, any server issue at their end could make it difficult for the user to access the wallet. Also, there is always the risk of hacking and theft.
The hardware wallet is considered the best when it comes to security. The USB device can store large amounts of cryptocurrencies offline, which prevents high-tech criminals from stealing a user’s digital assets. However, there are two issues that the hardware user might face. First, it is difficult to use when the user is mobile, and second, if the USB device gets damaged, all the digital-assets get lost.
There are a ton of wallets available for various cryptocurrencies. For those intending to buy bitcoins, they can consider these wallets: Coinbase, a software product, Trezur, a physical device that can be plugged into a system, and Electrum, a software product.
For storing Ethreum, users can sign up for Metamask, a desktop wallet and mobile wallet, Jaxx, a mobile wallet, MyEtherWallet, a web wallet, and KeepKey, a hardware wallet. Coinbase is also good to store Ethreum. Users should only pick the wallet that matches their needs.
The process to sign up for a wallet is easy, with a few minute differences from one wallet to another. First-time users have to complete a sign-up process, where they have to provide a username and a strong password. Once it is done, they can log in and complete other formalities such as linking the wallet to a mobile number and enabling 2-factor authentication. Users can begin buying the cryptocurrencies when they are done with that.
Nuo Network has always provided users with a wide variety of ways to interact with the Ethereum blockchain while letting them stay in full control of their funds at all points. Since Nuo is completely non-custodial, it allows users to directly signup on their platform using a Coinbase wallet or just a password and then link your account using the Metamask wallet as well.