A Guide to Most reliable Cryptocurrency Wallets
Cryptocurrency wallet is a software program designed to store your public and private keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. Mathematically: Crypto wallet = Private key + Public key(cryptocurrency address). How Does a Cryptocurrency Wallet Work? When a person sends you bitcoin or altcoin(bitcoin alternatives), he/she is essentially signing off ownership of the coin to your wallet’s address. To be able to spend the coin by unlocking the money, the private key saved in your wallet must correspond with the public key, the currency is assigned to. If public and private keys correspond, the balance in your crypto wallet will appreciate, and the sender’s fund will decrease instantly. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your crypto wallet.
Cryptocurrency Wallet: How secure are they?
Wallets are to an extent secure to a certain level. The level of security lies solely on the type of wallet you use (desktop, mobile, online, paper, hardware) and the service provider. A web server is a riskier place to keep your account details compared to offline. Online wallets can expose users to possible vulnerabilities asa result of threats from dubios people to steal your currency. Offline wallets are insulated from attack just because, the key is not saved online and is not dependent on the third party.
Which are the most reliable digital wallets?
There is a continual growing list of options. Before picking a wallet, you should, however, consider how you plan to use it.
• Do you need a wallet for daily purchases or just buying and keeping digital currency as an investment?
• Do you intend to use multiple cryptocurrencies or a single one?
• Do you want to be accessing your crypto wallet from anywhere or just only from home?
Spend time to assess your requirements and then make a choice.
What are the various kinds of Cryptocurrency wallets?
There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.
• Desktop: A wallet software is installed on a PC or laptop. They are only accessible from the single computer from which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds
• Online: This wallet runs in the cloud and is accessible from any country or region using any computing device. While they are more convenient to access, online wallets save your private keys on the web server, thereby exposing the private key.They are also controlled by a third party which makes them more vulnerable to attacks and theft.
• Mobile Wallet: This is a wallet installed on your phone via its’ app software The term mobile means it can be explored anywhere in any location as long as, there is a network. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available
• Hardware: When we talk about hardware wallets, they differ from the software wallets due to its’ uniqueness in storing the private key.Hardware wallets store a user’s private keys on a removable hardware device such as USB. Although hardware wallets make transactions online, they save confidential information such as private key offline which epitomizes high-quality protection. Hardware wallets provide a high level of protection and their platform is very easy to use.It is worthy to mention paper wallet. Briefly, the paper wallet can be regarded as a physical copy or a printout of your public and private address keys; it could also be referred as a piece of software that is used to form a pair of keys which are printed securely.
In this guide, emphasis will be made on the most reliable web-based and hardware wallets
Some software being unleashed to crypto market as wallets are malware trying to take advantage of those willing to download and install unauthorized software off the internet. Never trust wallet software that comes from a unverified source. To send coins and receive coins you only need to share your public wallet address (your public key).Never share your wallet private key.
Start with popular solutions like the ones stated above, then move onto other wallets, after you have known better.
Jaxx is an ether based multi-cryptocurrency wallet which is easy to implement and is supported by the following coins: Ether, Litecoin, Dash, DAO, REP, Ether Classic, Rootstock, Zcash.Jaxx was designed to give an excellent Etherum and Bitcoin transactions to its’loyal customers. It is available on many platforms and the devices such as windows, Firefox, Android, OSX, google chrome, Linux, tablet and iOS mobile) They link websites via Firefox and google chrome extensions. Jaxx allows wallet conversion among A-list cryptocurrencies such as Bitcoin, Ether and DAO tokens via its’ platform. With arrays of new features and the continual integration of new currencies into its; mainstream, Jaxx will be an excellent choice for users who desire to have a multi-cryptocurrency wallet.
Supported Coins: BTC, ETH, ETC, DASH, DAO, LTC, REP, ZEC
• Pros: Good privacy & security, Multi-currency, wallet linking across multiple platforms, feature-rich, user-friendly.
• Cons: (i)Code is not an open source, can be slow to load. (ii)It seems to be having frequent technical problems
MyEtherWallet is an online ether wallet that functions as a free, open-source tool. The wallet, like most cryptocurrency wallets, lets one to easily and securely interface with the Ethereum network. One peculiar thing about MyEtherWallet is that you can use cold storage wallets like Ledger or Trezor to access your account. Also, MyEtherWallet also comes with hardware wallet support, which allows one to create a safe storage solution. Your device is your wallet that has the necessary information, and MyEtherWallet is a wallet software that lets you interact with the Ethereum network. Supported Coins: ETH, ETC and ERC-20 tokens Pros: Supports ERC20 tokens, which makes it a great solution for users desiring to participate in cryptocurrency ICOs. Easy Setup. Cons: If the Ethereum network is congested, users find it difficult sending MEW transactions.
The blockchain is a well-known Bitcoin wallet. Access to this wallet can be done via any browser or smartphone. Blockchain.info makes use of two different additional layers. One for the browser version, users can enable two-factor authentication, while the other, mobile users can activate a pin code requirement every time the wallet application is opened. Also, your wallet will be stored on the web, and all transactions will go through the company’s servers being the third party, Blockchain.info does not have access to your private keys. Above all, this is a well-known company that is trusted by the Bitcoin community.
For security reasons, one needs always to use the browser extension and email backups in backing up your vital information.
Supported Coins: BTC, ETH
• Pros: High standard security, well-established & trusted company, easy to use web & mobile friendly interface, free.
• Cons: Hot wallet, third-party trust required, weak privacy, outages occur often.
Exodus.io is a new digital wallet that is currently available only on the desktop. It offers both the storage and trading of Bitcoin, Ether, Dogecoins Litecoin and Dash through an amazing easy to use and friendly interface. It also provides a very simple guide to backup your wallet. One of the remarkable things about Exodus.io is that it has a built-in exchange that enables users to trade altcoins for bitcoins and vice versa without leaving the wallet. You have everything packaged together for users to experience convenience and ease in cryptocurrency transactions.
Supported Coins: Bitcoin(BTC), Ethereum (ETH) , Litecoin (LTC),Dash (DASH) ,Golem (GNT),Augur (REP) ,Decred (DCR),EOS (EOS),Aragon (ANT),Gnosis (GNO),OmiseGo (OMG),Qtum (QTUM) (ERC20) ,Basic Attention Token (BAT) Civic (CVC) ,SALT(SALT) ,Bitcoin Cash (BCH),Ethereum Classic (ETC)
• Pros: Good privacy & security, easy to use, supports multiple currencies, in-wallet trading, open source software, free.
• Cons: No web interface or mobile app.
Neon is an open source software wallet for the NEO blockchain, readily available on Windows, Mac OS, and Linux(in English only).NEON Wallet is one of the best NEO wallets available in the market right now. It enables users to store, send and receive both NEO assets, i.e. (NEO & GAS).
The remarkable thing about it is that you can automatically generate GAS if you hold NEO cryptocurrency in the NEON Wallet.
While using the wallet for your NEO funds, you need not worry about security because your private keys are never stored on NEON’s servers. Many who have used this wallet, like it because of some amazing features including the ones mentioned above.
The development of the wallet was outsourced, not developed by NEO developers, but NEO developers painstakingly reviewed it and found it to be 100% safe and standard. Supported Coins: NEO, GAS
• Pros: Good privacy & security
• Cons: Users don’t know which NEO wallets are legit and which ones are scams.
MyMonero is a web-based cryptocurrency wallet that is not only secure but private, and untraceable. It is an open source that is accessible to all. Your private keys are being encrypted and stored on their servers to make sure you don’t lose your key. You control and are solely responsible for your currency. Your transactions and your account details are kept private from intruders.
My MyMonero has a built-in exchange that enables users to trade their cryptocurrencies without leaving the wallet.
Transactions on the Monero blockchain cannot be linked to a particular user or real-world identity.
• Validation: SPV
• Anonymity: Medium
• Ease of use: Good
• Open Source: No Supported Coins: BTC, LTC, ETH, PPC, DASH, XMR, ZEC
Pros: Monero is secure., is private., is untraceable. Cons: Late response from customer support whenever a user is having an issue.
Electrum is a well-known desktop wallet because of its speed and ease of use. It is an open source and was established in November 2011.Electrum can also be used as cold storage if you have an extra computer that can be used offline. Additionally, Electrum provides features such as connecting through Tor, multi-signature wallets, integration with hardware wallets, and more. These are the more features:
Instant on: Users can use a network of servers that index the blockchain.
Forgiving: User’s wallet can be recovered and restored from a secret seed.
Safe: Your private keys are encrypted on your hard drive, and can never be sent to the servers.
Low trust: Information received from the servers is verified using SPV. Servers are authenticated using SSL.
No downtimes: A user is not tied to a particular server; there is an instant switch if your server is down.
Ubiquitous: One can use the same wallet on different computers, transactions synchronize instantaneously.
Supported Coins: BTC, LTC, MZC, VIA, and DASH
PROS: Supports third-party plugins: Multi signature services, Hardware wallets, etc. It is fast, and it verifies all the transactions in your blockchain history using SPV.
Cons: Low trust
Ledger Nano is a Bitcoin and Altcoins hardware multi-signature wallet, that is used for storing cryptographic assets and securing digital payments It connects to any computer (USB) and embeds a secure OLED display to check and confirm each transaction with a single tap on its side buttons.
As cryptocurrency owner, you need to secure your secret data and the access to your funds from prying eyes. Ledger Nano protects private keys and other confidential data. The sensitive transaction is isolated inside your hardware wallet within a Secure Element, locked by a PIN code. Operations can’t get altered; they are physically verified on the embedded screen with a simple press of a side button.
Ledger Nano includes Bitcoin, Ethereum Litecoin and Ethereum Classic companion apps, and other blockchain-based cryptocurrencies. A user can send and receive payments, check his/her accounts and manage multiple addresses for each currency from the same device. Ledger Nano also supports the Universal Second Factor standard that simplifies the authentication process on compatible online services such as Gmail, Dropbox or GitHub.
Supported Coins: Bitcoin, Ethereum, Litecoin, Fido U2f, POSW, Dogecoin, Zcash, Dash, Stratis, Ripple, Hello, Bitcoin Cash, Komodo, Ethereum Classic, PIVX, Ark, Expanse, Ubiq, Viacoin. and Vertcoin
• High security
• Multi-Currency support
• 3rd-Party apps can run from device
• U2F support
• When recovering wallet from the key, the whole process can be done from the device without even connecting it to a computer!
• Costs about 70usd or more.
Trezor differs from the Ledger Nano; it’s a very tiny computer rather than a smart card. Private keys are generated offline like the Ledger Nano.
When setting up the wallet, Trezor generates a 24-word key. The Trezor has its built-in screen where keys are displayed and backed-up.Trezor being an offline device offers extra security to users due to the key being stored offline.
An additional passphrase can be included in the 24-word key. It provides extra protection for anyone who finds someone else’s 24-word key can access the funds. If the optional passphrase is implemented, an attacker still wouldn’t be able to access money without both the private key and the passphrase. If the passphrase is forgotten entirely, it cannot be retrieved.
Supported Coins: Bitcoin, Bitcoin Cash, Dash, Litecoin, and Zcash
• Pros: Good security & privacy, cold storage, easy to use, in-built screen.
• Cons: Costs $99 or more.