A cryptocurrency wallet is a software application that allows you to store your cryptocurrency even if it does not exist in any physical form. Because cryptocurrency is not produced in any physical form, it can only be stored in a coin wallet.
Coin wallets are simple to use and highly secure. The only issue that usually arises when you are a cryptocurrency owner is deciding which crypto wallet to use because there are so many on the market. As mentioned, there are numerous crypto wallets, but the ones that generally stand out are hosted wallets, non-custodial wallets and hardware wallets. When it comes to selecting the most appropriate wallet, you need to contemplate the things that you wish to do with your bitcoin and the type of insurance you wish to have as well.
Before you select the crypto wallet you want to store your crypto in, you should ask yourself questions like, why am I using cryptocurrency and not any other mode of payment? The reason why this question is very crucial is that every wallet has been made to serve a particular purpose, and that’s why knowing why you choose cryptocurrency as a mode of payment is very crucial. Also, make sure you select a wallet that is secure as well.
The various types of wallets used to store cryptocurrency include ;
- Hosted wallets
Hosted wallets are the most accessible currency wallet to set up when you want to save up your cryptocurrency. Your currency gets held up in a hosted wallet when you obtain it using a network like coinbase. The explanation for the name of this particular wallet is that a third party usually holds your money. Moreover, when you have a hosted wallet, you don’t have to worry about losing your USB wallet or using your keys. Other than this, you are also safe. When you forget your password, you don’t have to worry because you will still access your crypto. When coming up with your hosted wallet, make sure you select a platform that you trust, then the next step is to select your account, and finally, you can buy or transfer your crypto.
- Self-custody wallet
Just as the name suggests, a self-custody wallet typically gives you a chance to control your currencies while in the wallet. Non-custodial wallets don’t require a third party to safeguard your crypto. Even if this wallet provides you with the software needed to safeguard your wallet, things like passwords must be remembered. To set up your self-custody wallet, the first thing you have to do is; download a wallet app and then come up with your account; afterwards, make sure you write down your private key. Then finally, you will be able to transfer crypto to your wallet.
As a holder of cryptocurrency, you need to make sure you choose the most appropriate wallet to store your crypto in. cryptocurrency