A variety of factors determine the type of wallet to use, including:
- What you want to trade
Some wallets do not support all types of cryptocurrencies. Nevertheless, some of the best crypto wallets can trade hundreds of different cryptocurrencies, offering more of a one-size-fits-all experience
- What is your trading frequency
Generally, hot wallets are better for cryptocurrency traders who are more active. Quick login means you can buy and sell crypto in just a few clicks. If you want to make less frequent trades, cold wallets are a better choice.
- Having peace of mind
If you are concerned about hacking, then the safest, most secure option is to keep a physical cold wallet in a bank safe or at home. Others may be confident about the safety of their hot wallets.
- What it costs
Investigating the costs associated with each wallet is important. Several hot wallets are free to set up, but charge a fee every time you trade. As with any piece of hardware, cold wallets will cost money to purchase.
- What it can do
Cryptocurrency wallets have many of the same basic features, but additional features make them unique. This is particularly true of hot wallets, which come with advanced reporting features, insight into the crypto market, and the ability to convert cryptocurrencies. Security features can also make a wallet stand out from others.
Tips to keep your wallet safe
Your Bitcoin wallet might be the best on the market. You could also use a state-of-the-art cold wallet to store your investments. Nevertheless, if you don’t protect your wallet, it won’t matter much.
The following tips can help you protect your cryptocurrency investments.
- Don’t share your private key
This seems pretty basic, but it could literally be the key to maintaining the security of your account. Don’t share your private key with anyone, just as you wouldn’t share your email address or bank account information.
- Secure your cold wallet
Even though something is obvious, it doesn’t make it any less important. Cold wallets aren’t something you want to leave lying around. Keep it locked up in a secure place.
- Make sure you have a backup plan
It might be a good idea to give a backup of your crypto wallet to someone you trust, or lock it away somewhere safe.
- Beware of phishing
Since cryptocurrency trading has become more popular, hackers have turned to the phishing methods they have used for years to target traders. Be aware of any communication that urges you to act immediately. Do not provide your private key to a third party via email or SMS. You should check with your wallet provider if you are unsure.
- Mind the network
Using the best crypto wallets anywhere with an Internet connection is one of their advantages. However, public networks can be unsafe and insecure. Avoid logging into public networks to save your data. It could cost you later on.