3 Different Types of Cryptocurrency Wallets for Secure Investment

If you think that you can create a bitcoin wallet easily, then you might be wrong. You can instead install any software on your desktop or ...

If you think that you can create a bitcoin wallet easily, then you might be wrong. You can instead install any software on your desktop or mobile device which is pretty easier and convenient than creating your own digital wallet.

In a crypto wallet, you can safely keep your cryptos. There are different kinds of crypto wallets. The most famous ones we come across are hosted wallets, hardware wallets, and non-custodial wallets.

If you want to choose the right wallet for yourself, you should first decide what it is that you would like to do with the cryptocurrency you have and the type of safety net your cryptos deserve. Let’s have a look at some types of wallets below.

3 Different Types of Cryptocurrency Wallets for Secure Investment

1. Hosted Wallets

Hosted wallets are the easiest to set up and they are well-known in the crypto market. For example, if you are buying cryptocurrency through an application such as Coinbase, you should know that the hosted wallet holds your cryptocurrency automatically.

The wallet is given the term ‘hosted’ because there is a third-party service that holds your cryptocurrency. This is just like the scene where a bank keeps all your money in either a savings or current account.

You will often hear people saying that they either lost their keys or lost their USB wallet, however, when you have a hosted wallet, there is nothing you should be worried about.

The most important benefit you get while keeping your cryptocurrency is that even if you don’t remember your password, you will always have access to your crypto. Below is how you can set up your hosted wallet.

1. Select a credible platform and consider it in terms of convenience, security, and compliance not only with the government but also with financial regulations.

2. Create an account and enter all the personal details it asks for. Here, also keep a secure password and use 2FA (2-step factor authentication) so that you unlock another level of security.

2. Self-Custodian Wallets

A self-custodian wallet is just like an Exodus or Coinbase wallet which gives you the full authority of your cryptocurrency. You can also have access to cryptocurrency activities on an advanced level such as staking, borrowing, yield farming, and more. However, if you are only concerned with the receiving, sending, buying, and selling of cryptos, then you can turn to a hosted wallet for the best solution. You can set up a self-custodian wallet by:

1. Downloading a wallet app like Exodus and Coinbase wallet. 

2. Creating your account and not sharing any personal information or email address for a non-custodial wallet. 

3. Always jot down the private key you were holding. It was left on random phrases.

4. Transferring cryptocurrency to your wallet. Some days it might be hard to use any traditional currency (like Euro or US dollars) with a non-custodial wallet.

3. Hardware Wallets

It is a physical device that you can easily hold and store your private keys. Most people don’t use hardware wallets as they have increased a lot of their complexity and also lost cost. However, they have benefits as well. Now, below are some pointers that you should follow while setting up your wallet.

1. Always buy your hardware and there are two great brands Trezor and Ledger where you can easily find them. 

2. Install the software to set up the wallet. You can download its software from the official website of the company and keep following the same instructions so that your wallet stays safe.

3. You can also transfer cryptocurrency to your wallet directly. This wallet is quite similar to the non-custodial wallet. Just like you can carry your cash anywhere, you can carry your cryptos as well.

You can also make use of the 1kdailyprofit.app so you can easily buy, sell, receive, or anything you want. Cryptocurrencies, for sure, have taken the market by surprise and it’s better to learn all that you can as fast as you can.

You can also use the above wallets whenever you are ready to do something with your cryptos. Just make sure that you have all the knowledge in one place and you are making a decision based on the facts and figures laid in front of you.