Finding the best crypto wallet can be time-consuming since there is a wide array of wallets on the market.
One of the first rules of crypto is to secure your assets. To do that it’s vital to pick a crypto wallet that is both reputable and secure.
In this article, you will learn the main types of wallets and the critical security features to identify to find the most secure crypto wallets.
What is a Crypto Wallet, and How Does it Work?
A crypto wallet is a digital wallet that allows you to store, send, and receive digital assets like cryptocurrency or NFTs. Your crypto wallet stores both your public and private keys to enable you to transact on the blockchain.
Think of your private key as your digital signature or the equivalent of an ATM pin. Your crypto wallet generates a seed phrase that allows you to access your private keys and will allow you to regain access to your wallet if ever lost or stolen. A seed phrase contains a string of 12 to 24 random words.
The key takeaway is that your crypto wallet allows you to store your cryptocurrency and contains your private and public keys, which control access to your digital assets.
The 3 Main Types of Wallets
There are three categories of wallets; software (“hot”), hardware (“cold”), and paper wallets. Let’s look at the most common crypto wallet options on the market and discuss the advantages and disadvantages of each crypto wallet type.
- A hot wallet is a software wallet connected to the internet and used to store and receive tokens. This is one of the most commonly used wallets because they’re quick and easy to set up and are usually accessible via mobile phone and desktop.
- The only drawback is that it’s connected to the internet, making it less secure. Hot wallets are the most popular, typically at no cost, and the most practical for regular trading transactions.
- A cold storage wallet is the most secure of the 3 wallet types. It is a physical hardware device that stores digital currency or assets on a device not directly connected to the internet. Cold storage wallets resemble USB and pen drives.
- Cold storage wallets tend to have a smaller amount of cryptocurrencies for storage on the device. They are impractical for doing daily trading or swaps since you have to connect the device to the internet.
- A paper wallet is exactly what it sounds like. It’s literally a crypto wallet that contains information for the wallet’s contents stored on paper. It’s a simple option. Paper wallets may have a QR code or handwritten details containing digital assets access.
Essential Criteria for Selecting Your Wallet
When choosing a wallet, you want to ensure that your investment is in the most secure wallet(s) appropriate to the total value to be stored and the inconvenience you’re willing to endure. You want to feel good about the choice of wallet you have selected to hold your precious digital assets.
Here are some of the must-have features to look for in a crypto wallet:
- It’s crucial to use a crypto wallet attached to a reputable and reliable company. Consider companies like Abra, that have been around long enough to establish credibility with the crypto community.
- It’s critical to understand which currencies your wallet can store is a critical step because you want to ensure that if you purchase crypto you can store it in your wallet. For example, two of the most common token standards are ERC-20 and BEP-20. However, a token that is made on a native blockchain may not be compatible or supported by your wallet.
Easy to Use:
- Navigating the wallet is just as important as buying crypto. Look for intuitive solutions that help you easily understand the value of a digital asset and how to trade, generate, or borrow against it. Abra’s app is built to be easy-to-use so users can quickly and securely begin trading crypto.
- Security is an essential factor for maintaining the possession of your digital assets. Beyond your standard cryptographic technology public and private keys, there are security measures that wallets need to implement. Two common security features for crypto wallets are 2FA (two-factor authentication) and whitelisting can enhance security significantly.
Conquer Crypto and Trade with Abra Today
For newbies selecting the right crypto wallet can be a daunting task. Here at Abra, we pride ourselves on being one of the most secure digital wallets to buy and trade crypto. We offer you resources such as videos and crypto investing guides to help you conquer crypto.
Join our community and find more people achieving their financial goals through crypto.
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Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.
How Abra Protects Your Funds
Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.
Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.
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