Cryptocurrencies experienced a major hype in the financial market space amongst the COVID-19 pandemic crises. There was a huge price jump in popular crypto coins’ price value at the end of 2020. This lead the crypto community urging to mine, sell the cryptocurrencies, and some novice investors were diving into the crypto market. With the increase in the cryptocurrency hype, the cryptocurrency wallet development was also upstream with a lucrative business. However, the crypto users are now focussing on the security of their crypto assets in the wallet application as never before.
Blockchain wallet development is at a great pace as the hackers and scammers are getting smarter. The crypto news related to scams in individual wallet applications, potential exchanges, NFTs, and even blockchain networks becomes a threat to the community audience. Hence, picking the appropriate and secured crypto wallet application for storing and performing transactions would be the best thing to safeguard your crypto assets in the upcoming era.
In this blog post, you can explore a wide range of crypto wallets available in market space to pick in 2021!
Cryptocurrency wallet options in 2021!
Every crypto user must be aware of the security regulations related to wallet applications. Web wallets offered by exchanges are custodial, and hence there seems a threat of data breaches. However, these wallets have the option to recover the lost passcodes with ease. Cryptocurrency users are now moving towards decentralized, customized wallet applications for enhanced security reasons. These wallets have the pitfall of fewer or no recovery options when the passphrase of the crypto wallet is lost.
Hence, in the end, the cryptocurrency users become solely responsible for their wallet application and assets stored in it when it comes to security standards. If the passcode or phrase of the wallet is lost in the crypto space, the assets are lost! Hence, depending upon your needs and crypto-asset storage, you can choose between the market space’s wallet applications!
Hardware wallets are the most secure medium to store the highly-valuable crypto assets for users with complete accessibility and offline security. Some of the popular hardware wallets are Ledger Nano X, Keepkey, Trezor. These hardware wallets look similar to USB drives, but they can hold a wide range of crypto assets in them.
The hardware wallets can be connected to the crypto user’s PC for performing transactions and can be detached to return back offline storage of crypto assets. These wallets are most secure and resist hacks even if the device used for the transaction possesses viruses. Once the wallet is connected to the device, the users can access the official website, download applications, and set their passphrase.
Web or online wallets are those available in the exchanges or online portals that can be accessed on any device from anywhere. These wallet apps need not be downloaded or installed on devices to perform crypto transactions. Every transaction and process can be performed online.
The users storing crypto assets in web wallets have the advantage of easy recovery and backup as the third-parties manage their data in servers. Online crypto wallet providers have the practice of regular maintenance and periodical backup of servers. Hence, novice crypto users can be at their chairs with ease of features.
Local wallets are crypto applications that can be downloaded and installed on devices. These wallet apps can be accessed and operated only on a particular device. The local wallets are completely secure than online web wallets as the crypto owner can leverage the complete control of assets, and the passphrase is only stored on that device.
The popular local wallets are Jaxx, Exodus, Edge, which support multiple cryptocurrency transactions. These wallet applications offer both desktop and mobile versions. The wallet keys are stored only on the crypto owner’s local device, which is protected by a fingerprint or device PIN.
Paper wallets are highly-secured hardware wallets in which the public and private keys are generated as a QR code in the paper. Just like the UPI QR codes placed in the merchant shops, paper wallets can be efficiently used in next-generation payment transactions.
A paper wallet is another common type of cold storage that is widely used by the crypto community. There are many popular sites to generate paper wallets; you can leverage them to create this kind of cold storage.
The crypto community is in thirst for hybrid solutions for their needs. Many professional crypto traders have developed customized wallet applications that can be utilized on desired devices such as desktop, mobile and then the bulk crypto-assets can be stored in hardware or paper wallets.
Wrapping up with best security practices!
You can build the advanced cryptocurrency wallet application with customization, compatibility, and versions, but at the end of the day, the sole responsibility of securing the crypto assets is in the crypto owner’s hands. Hence, the professional crypto traders have the practice of owning a software wallet such as web, mobile, or desktop application for easy accessibility with a minimal amount of cryptocurrencies and a hardware or paper wallet of their choice for cold storage of assets.
You can try this trick to escape from hackers prying eyes and secure your crypto assets! Stay connected with our community to explore more about the crypto space!