Whether you are considering buying your first cryptocurrency or getting off to a great start in the crypto world by first understanding how it works. You should have a good understanding of the complexities of coin storage. One is to choosing the best wallet for the safest coin storage.
Cryptocurrencies have returned financial power to individuals, but when this power increases. The same applies to the responsibility to manage our assets properly. You have complete control over the assets you have in your wallet.
Choosing the Best Wallet
Hardware or Software Wallet
When choosing a wallet, there are two main categories to choose from: software or hardware. A software wallet is an application that can install on a mobile phone or computer. Meanwhile, a hardware wallet is a physical device connect to mobile phone/computer for use anytime and anywhere.
It is very safe to store your keys/coins on physical objects which can store offline. Then, when you want to make a transaction, you can securely connect to your hardware wallet and use the app to manage your coins.
It is generally believed that hardware wallets are much more secure than software wallets because they are offline by default. If you lose your hardware wallet. You can still use the initial phrase to recover your assets in a new wallet; if someone finds your lost wallet, they won’t be able to access it if they don’t know your PIN/password. Then it will all be deleted by itself. Please switch to a new wallet, which has its original phrase restored.
It is important to always buy a hardware wallet directly from the manufacturer. For example, although Ledger is sold on Amazon, buying directly from the Ledger website is always recommended.
The Nano X Ledger is currently the gold standard for a use hardware wallet. The Nano X can be connected wirelessly to your phone or plugged directly into your computer to access your apps and coins. You can store almost any mainstream, or semi-mainstream coin on the Nano X. Ledger also has its exchange built into the app, allowing you to exchange coins. The price of the Nano X is $120, but it is the most versatile and easy-to-use hardware wallet.
Trezor is Ledger’s only competitor. They provide two hardware wallets priced at US$50 and US$170. The cheaper Trezor One option is very similar to the Nano S. The biggest difference between the two is that the Trezor software is open source. The open-source software is enough to win the hearts of many encryption enthusiasts, which is why I included Trezor on the list. However, I still prefer the Ledger wallet because I like its apps and hardware style more than Trezor.
- The Nano S Ledger
Ledger is the predecessor of the Nano X. It can only connect via cable, no Bluetooth. It also has less internal storage space, limiting the number of different coins you can store; Ledger downloads a separate dedicated wallet app for each coin, so the Nano S can only download a few different apps.
However, you can uninstall the app, but it won’t take away your coins. The Nano is half the price of its big brother at $50, which makes it an affordable option for storing most coins offline. Many people store most of their Ethereum and Bitcoin in the Nano S and then store their mobile coins in software wallets.
A software wallet that you often hear is a “hot wallet.” This naming scheme comes from databases, where “hot” storage is data you have to use frequently. And “cold” storage is data that can last a long time on a disk. Because software wallets are so convenient, many people use them as wallets hot. For example, a wallet to store the cryptocurrencies they are actively moving and recently acquired.
- Atomic Wallet
Exodus and Atomic Wallet are well-designed and intuitive wallets that can hold multiple coins. They can also use it to exchange one coin for another, which is very useful.
The disadvantage of these heavy software wallets is that they are not open-source systems. Which can cause security problems; Therefore, both wallets are very popular and non-custodial. When you create any wallet, you will get a seed phrase, which can use to recover your wallet if you cannot access the app.
Which Wallet Will You Use?
Regardless of which coin you invest in, each wallet has its advantages and disadvantages, better fitting what you are looking for. For example, are you someone who is not going to exchange your coins anytime soon or invest a large amount of money?.
Then a hardware wallet is the best for you. How about someone who wants quick access to monitor and trade digital assets easily? A software wallet is probably your best way to store cryptocurrency. That may be what distinguishes the two of them from the various aspects that have been discussed above.
Hopefully, you can choosing exactly which wallet is best for your individual needs. However, do not immediately believe in the advice of strangers who may mislead you.