Or how to store your cryptocurrency? This short guide will help you understand what are cryptocurrency wallets, function and how to open one for yourself.
How to Store Your Cryptocurrency?
If you are looking to store your cryptocurrency for better management or secure storage, you will need to use a cryptocurrency wallet.
Cryptocurrency wallets are used to store the private keys needed to access a cryptocurrency address. Users can manage their transactions from the wallets. There are several types of cryptocurrency wallets, such as desktop, mobile, web, paper and hardware wallets.
Desktop cryptocurrency wallets are simple software that you can use on your computer device.
These wallets allow the user to create individual bitcoin addresses for an individual transaction. It provides a much better security option than most other wallets. Some of the most popular desktop wallets are Electrum, Bitcoin Armory and Multibit.
If you are looking to add a bit more mobility to your cryptocurrency management, then you will need to use Mobile wallets.
There are several cryptocurrency mobile wallets available for use in smartphones and other mobile devices. It allows you to make cryptocurrency transactions while on the move. Wallet services, such as Mycelium, BreadWallet and CoPay are common among cryptocurrency users.
The online wallet provides you the most in terms of processing transactions in real-time.
These wallets are directly connected to the internet. Users can access their online wallets from anywhere and from any device. It also increases the chance of online hacks and losing your cryptocurrency.
Users should avoid keeping a large amount of cryptocurrency in the online wallets for an extended period and transfer the currency to a safer wallet option after the transaction process. GreenBits and GreenAddress are some of the best online wallets available on the internet.
It is recommended that users should encrypt their wallets and keep a backup at all times. They can also use the multi-sig feature to provide some wallet service to ensure security to their cryptocurrency.