I’ve lost my wallet a couple of times. Once, it disappeared completely; the other time, someone was kind enough to return it to me. I still felt powerless both times, though. Every once in a while, the panic creeps in and I find myself reaching for my wallet, just to make sure it’s still there.
I don’t have to worry like this when it comes to my cryptocurrency wallet. And neither do you – provided you choose the right one. Whether you’re into crypto betting and investing, or you just want to try out the new technology, you’ll need a crypto wallet to get started. Here’s what you should be looking for.
Why Do I Need a Crypto Wallet?
So you can send and receive cryptocurrency. But you knew that already; this question is about your specific needs as a crypto holder. There are different types of crypto wallets out there, each with its own features and use cases. If you’re just going to buy giant heaps of Bitcoin and HODLgang for a while, you should get a “cold” wallet that’s not connected to the internet. More specifically, you need a “hardware” wallet that both generates and stores the public and private keys used to make your crypto transactions.
On the other hand, if you’re going to use crypto to buy and sell things like nature intended, you’ll prefer a “hot” crypto wallet with internet connectivity. There’s always a trade-off to be made between security and convenience; as long as your transactions aren’t too large, you should be in reasonably good shape downloading a “software” crypto wallet to your smartphone, which will then allow you to use the phone’s QR code reader to help simplify and speed up your transactions.
There’s every chance you’ll be using crypto as both a store of value and a means of exchange, in which case you can always get both a cold and a hot wallet. Just remember, when it comes to dividing your budget between investment money and spending money, be like Michael Jordan and the McDLT: Keep the hot side hot, and the cold side cold.
What Kind of Crypto Do I Want?
Your choice of crypto wallet will also depend on which digital coin(s) you’re using. Each coin has its own blockchain, so your wallet has to interface with said blockchain if you’re going to move money around. Let’s say you’re dealing exclusively in Ethereum; most leading crypto wallets can handle ETH, but some, like the Electrum wallet, will only let you hold Bitcoin (BTC).
Which digital coin you choose in the first place will naturally depend on your crypto needs. If you’re investing with an eye on the medium-to-long term, Bitcoin is your huckleberry; if you’re interested in decentralized finance (DeFi), you’ll want to get your hands on some Ethereum.
Once you’ve got your digital coins sorted out, you can choose the right crypto wallet for your needs – and again, you’re not limited to one. There are plenty of Ethereum holders out there using Exodus as their hot wallet and Trezor as their cold wallet, so they can move funds between the two. Again, though, be very cautious about making these transactions. They should be rare and purposeful.
You might have other needs to consider when choosing a crypto wallet, although most of them will boil down to security versus convenience. So we’ll leave you with one last warning about custodial versus non-custodial wallets. If you simply allow your chosen cryptocurrency exchange to also act as your crypto wallet, you are effectively handing them control of your keys. Use a non-custodial crypto wallet instead; if you remember what happened to Mt. Gox in 2014, or even FTX in 2022, you’ll understand why. Choose wisely, and enjoy your crypto betting journey with us here at Bookmakers Review.
