When it comes to cryptocurrency, nothing seems straightforward. Even the concept of wallets which one may know is a bit different. If you have read our previous articles on cryptocurrency then you have a basic idea of what cryptocurrency is and how to mine it. In this article, we are going to introduce you to the concept of wallet and pick out some of the best ones available in 2018.
What is a wallet?
Unlike an actual wallet which is used to hold currency, a wallet in case of cryptocurrency is used to store transactions. Yes, you are not reading it wrong. Cryptocurrency is not available at any physical location. There is only a list of transactions which determines the amount of cryptocurrency one has. A wallet is a hardware, or a software, which stores these transactions and keeps track of your overall balance.
Types of Wallets
Cryptocurrency wallets are not limited to just one type. There are various types of them depending on the usage and characteristics. We are going to look at each type.
Hardware wallets are, as the name suggests, physical devices which are used to store cryptocurrency transactions. They provide additional security as they are not in constant connection with the internet. This makes them hack-proof. The downside is if you lose your device, you lose your money too.
Software wallets are available for desktop, mobile devices, and online. There are certain wallet services which are available for multiple platforms. This makes it easier to access your money and do transactions. But, they lose out in terms of security.
Paper wallets are something entirely different. You store your keys by printing them out on paper. This proves to be the most secure method if you are able to take care of the piece of paper that has your keys on it. The downside of this method is that you need much technical know-how in order to use a paper wallet to do transactions. Also, if you lose the paper, then, you lose all your money.
5 Best Wallets
If we say all that and don’t present you with a list of best wallets then it would be really unfair. Here, we bring you the five best wallets currently available. This list comprises of wallets from the different categories.
1. Ledger Nano S
This is the most popular and by far the most secure wallet. Ledger Nano S is a hardware wallet with a form-factor of a flash drive. It allows PIN code securing facility as well as easy backup and restoration. Also, one thing to take note of is that it is a multi-currency wallet with support for storing altcoins. The built-in display on the wallet allows for easy checking and display of transactions and balance with the use of physical buttons.
Just like Ledger Nano S, Trezor is also a hardware wallet and pretty popular too. It was one of the first contenders in the hardware wallet market. Also, it is laced with security features and a built-in display. Trezor claims to have removed any kind of hackable feature and thus provides top class security for your cryptocurrency.
Another hardware wallet on the list. KeepKey is a relatively newer entry in this segment but it doesn’t fall behind the other hardware wallets at all. You get the same level of security as others if not more. The transactions need confirmation from the physical button before initiating. This allows for better control and reduces the risk of accidental transactions.
If we move on to software wallets, Jaxx is something one would not want to miss out. It is a multi-currency wallet created by Ethereum co-founder Anthony Di Iorio. Not only is it a multi-currency wallet, but, it is also a multi-platform wallet. Jaxx is available for iOS, Android, Windows, as well as Mac. One even has the option to easily swap between currencies and convert your asset to that of another cryptocurrency.
When it comes to design and user experience, Exodus stands at the top. It is a desktop wallet for Windows, Mac, and Linux. It is also a multi-currency wallet which supports shapeshift or changing one currency to another based on the exchange rate. Also, to suit your needs, you can choose themes and style up your wallet as you prefer.
The wallets above have been mentioned in no particular order. Hence, it is entirely up to the user to decide which wallet he wants to use depending on the use case. For some, security might be a major concern and hence they may go for a hardware wallet. While others may prefer the ease of use and accessibility and hence opt for a software wallet.