There seems little doubt that cryptocurrencies have taken off in a major way over the last few years. This has left popular coins, like Bitcoin, as viable assets to invest in and as a part of the mainstream financial world. Due to crypto’s status as a viable investment, people all over the planet have started to trade in it.
This is not a surprise when you think about how simple this is to do online now, and how many different coins there are to trade in. Alongside top examples like Bitcoin and Ethereum, you also have exciting newcomers like SLP to invest in. However, if you fancy giving crypto trading a go, there are a few key points to remember first.
Next to carefully choosing where to buy or sell coins online, selecting a crypto wallet is crucial. These are specially designed wallets that store your crypto key details securely and enable you to trade in this asset. But what should you factor in when selecting which wallet to use?
Type of wallet
The first key factor to take into account is which type you will use. This broadly splits into two main categories⎯a hot wallet and a cold wallet. Hot crypto wallets exist solely online and store your cryptocurrency keys digitally. Cold wallets, on the other hand, exist offline and store your crypto keys securely in the real world.
When it comes to hot crypto wallets, examples like online or mobile wallets are popular. For cold wallet storage, things like specialist hardware crypto wallets are widely used. These look a little like USB memory sticks but are designed with cryptocurrency storage in mind.
In terms of choosing which type to use, it mainly comes down to personal preference. Hot wallets are more convenient for day-to-day use but can be targeted by online cybercriminals. Cold wallets are a little more secure as they exist offline but are not quite as convenient to use and can be lost.
Crypto exchange integration
A very common way to buy and sell crypto is through cryptocurrency exchanges. These online platforms are not only simple to use and feature the latest cryptocurrency prices, but they can also be integrated with many crypto wallets.
It is therefore a great idea to look for a wallet that enables this kind of seamless integration. But why is this so vital? The truth is that connecting your wallet to an exchange delivers fast, reliable transactions and makes trading a lot easier. It makes buying and selling coins much less hassle and the whole process a lot quicker.
Top-class security features
In the same way as focusing on browser security extension is key for all Internet users, the security features that any crypto wallet offers are also key. As the transactions you carry out will be online (even if you go for a cold wallet), this is not something to ignore. As a result, you should carefully check what security features a wallet has before you decide to use it.
But what kind of thing should you be looking out for? When it comes to cold wallets, you might look for things like the ability to password-protect access to it. In terms of hot wallets, you may look for two-factor account authentication or email/text notifications every time you access it online.
Ease of use and multi-currency support
Whether you use it to check how Bitcoin is doing or to find out Luna price details, you must find a crypto wallet that is simple to use. It is just no good settling for one that you find complicated or annoying to interact with.
Good tips here include looking for wallets with an intuitive user interface and ones that come with great support that you can rely on. Many people will also look at the recovery features that any wallet has built-in. This comes in very handy if you lose your password/log-in details and need help to access your crypto tokens again!
Another great tip is to look for a wallet with multi-currency support. This basically means that you can use it for a number of different coins, rather than just one. Although single-token wallets might have extra features for trading that one coin, multi-currency wallets open up a much wider choice in terms of which coins you can get involved with.
Choose your crypto wallet carefully
As the above shows, there are a number of important factors that you should think about when choosing a crypto wallet. It really is key to take your time and think about not only which sort of wallet you plan to use but also the specific features that any may come with.