Understanding and choosing cryptocurrency wallets

• Wallets that are easy to use with friendly interfaces usually have fewer options and a lack of ability to control specific use.

• Wallets that are highly secure with advanced features can be more difficult to use.

• Wallets that support multiple cryptocurrencies can be less secure, with fewer advanced options.

• Wallets that have 3rd-party recovery options generally don't allow sole user control, forcing you to rely on a company.

With so many crypto wallets to choose from out there, which should you settle on? Sofia talks through this.

Because Bitcoin was the first cryptocurrency, early crypto wallets were only made to store and use Bitcoin. These wallets only connected to the Bitcoin network and couldn’t be used with other cryptocurrencies.

Pros

• Highly mature and open source

• Precise and advanced control over Bitcoin transactions

• Sole control of private keys

• Can be used to participate in validating/securing the Bitcoin network

Cons

• Clunky mobile app versions.

• Technically more difficult to use.

• Doesn’t work with other cryptocurrencies.

Ethereum-based wallets were designed to work with the Ethereum network. But because many cryptocurrencies were actually built on top of Ethereum, these types of wallets actually allow you to store and use hundreds of different crypto coins and tokens.

Pros

• Stores hundreds of cryptocurrencies in one wallet

• Intuitive use with advanced options

• Sole control of private keys

• Can be used to connect to all kinds of gaming, social, and financial apps

Cons

• Can be easier to fall for malicious apps

• Can be confusing when navigating between different networks

• Only works with Ethereum-based cryptocurrencies

As technology supporting cryptocurrency improves and new apps are built, more and more wallets are being developed that allow users to store crypto from different networks in a single wallet.

Pros

• Stores almost all the popular cryptocurrencies in one wallet

• Among the easiest wallets to use

Cons

• Can be more expensive to use

• Doesn’t always have the latest upgrades

• Missing many advanced options for crypto use

Lets explain what secure storage wallets are and why is it important to understand the benefits of them.

Pros

• The most secure method of storing crypto

Cons

• Less convenient for day-to-day crypto use

• Expensive

• Among the most difficult wallets to use

Crypto wallets are a technology that have been improving over the last 15 years. Sofia takes a look at this evolution.

The tech is secure but the users are vulnerable. Use crypto as you would the Internet.

Cryptocurrencies can be backed up in two ways using items unique to your crypto wallet.

Using additional layers of protection for your crypto increases the safety and security of your digital assets.