5 Things You Need To Know About Bitcoin and Cryptocurrency Wallets

Considering the popularity that cryptocurrencies have it is not a surprise that a lot of people are interested in learning more about blockchain and the potential of this market for investing. While most people have already heard about Bitcoin and other types of tokens and coins, many of them are still not so familiar with the main features and potential of blockchain technology. Looking from an aspect of the investor, a lot of people are interested in buying various cryptocurrencies because they are following the situation on the market where Bitcoin is breaking new records, while many other coins are growing as well. You can visit this site if you are interested in trading with Bitcoin and other cryptocurrencies.

Moreover, before you start with investing, you will have to learn about blockchain technology and the purpose of cryptocurrencies. Also, even though this system represents one of the safest for keeping your funds, there are still some chances for scams. When you want to buy any type of coin or token, you will need an electronic wallet to store that funds. We are going to introduce you to e-wallets and their main features.

1. What is an E-Wallet and How it Works?

Source: Corporate Finance Institute

The electronic wallet is necessary for storing cryptocurrencies and it represents a computer program that is using advanced coding processes to provide people to make transactions. The most common misconception related to e-wallets is that most people think about how they are storing cryptos directly in them. However, you have to know that these digital wallets only serve to provide the system with essential data like private and public keys, balance, and the ability to receive or transfer blocks of codes that represents the cryptocurrency. When it comes to keys, the public key can identify your account, while the private one is for the approval of transactions.

2. There are Different Models of E-Wallets

Source: The Economic Times

You should learn more about the selection of various models of electronic wallets since they have different levels of security and convenience. The main categories are hard drive wallets, desktop wallets, mobile wallets, and online ones. The hardware option is one of the most popular because it offers high levels of security. You can choose an external hard drive or USB for this model and the great thing is that you can have it with you all the time. The main advantage is that you can keep it offline all the time with the safest way to avoid any type of scams. Another great option is a desktop wallet, but the main issue is related to the fact that your PC might get infected with the virus, which might lead to theft of your funds.

When it comes to mobile and online wallets, they are much more convenient when compared to previous models, but the main issue is related to security. The chances for cyberattacks are big, even though this technology is one of the safest. The online wallet is a unique platform that is part of the bigger system. In most cases, popular online exchanges are offering their clients the possibility to store their funds online. On the other hand, a mobile wallet is an app with similar features as the desktop version. Also, this model is the most convenient option.

3. Issues with Security

Source: The Asian Banker

As we already mentioned, the main issue related to some options is security. If you are using some less-secure option, you will have to be sure that your software is up to date and to avoid any suspicious sources, websites, apps, and other content. For example, pay attention to the names of websites since some scammers are using almost the same names as some popular websites to lure you into checking their content. However, even a visit to such a website might cause some issues with your PC or mobile phone since they could steal your data.

Moreover, hackers are using various techniques to implement the malware in your device and steal the data they could use to empty your e-wallet. Therefore, avoid clicking on links that you might get in spam emails or pop up advertisements since they might install an invisible software to your device that could help them to break into your crypto account.

4. You Can Store Different Cryptocurrencies

Source: Medium

The main difference between Bitcoin wallet and other models is that you can use the first one only for the most popular cryptocurrency. However, with the expansion of tokens on the market, and their high potential to become more valuable over time, registering on the version that has support for more than just one digital asset is far more effective, especially if you are a frequent trader.

5. Best Types of E-Wallets

Source: CoinDesk

There is a wide selection of available models today, and you should learn more about their features to determine which one is the best option. For example, if you are interested in the model that has support for hundreds of different cryptocurrencies, you should check the Atomic Wallet. Another great feature of this option is that you can simply convert fiat currencies into crypto. On the other hand, you should choose Bread Wallet if you find security as the most important feature.

Moreover, we have to mention the Compay, which is a wallet that offers the clients the ability to use it with different devices. Also, it has a great interface which is especially good for beginners. There are also many other options, and the most important thing is to read more about their features since some of them don’t have decent support for your needs, or the transfer fees are too high.

The Bottom Line

The most important about any of these models is security. In that matter, you should pay attention that your PC has proper protection from cyber-attacks. Also, you should back up the wallet more often. Besides that, you can choose to use the 2FA each time when you want to use it.

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