If you invest in or otherwise use cryptocurrency then you’ll probably need a crypto wallet at some point
A crypto wallet is essential for storing and using your tokens and every investor should get their hands on one. As many industry experts have rightfully pointed out, you should never use crypto exchanges as your defacto storage solution. Instead, you should have a dedicated wallet that only you have the keys to.
In this article, we’ll go through the many things that you need to keep in mind when choosing a crypto wallet:
Reviews and Recommendations
When you’re buying something as important as a crypto wallet, you want to make sure you get the best. That means reading reviews from others who have used these wallets and making your decision based on this. There is no shortage of reviews and you can even filter them by location and features. As Kane Pepi explains, you can seek out the best crypto wallet in the UK if that is where you live. You can also look for the best crypto wallet specifically for Bitcoin, Ether, or any other token you use. By doing this, you’re more likely to get one that meets your exact needs.
Price
While you want to protect your money, you also don’t want to spend it all buying a wallet. That is why you have to consider the price of your potential crypto wallet. Paper wallets, for example, are practically free to set up and use and could be a good option for those on a budget. There are also several free hot wallets you can install on your computer or phone. If you choose a cold wallet, you can expect to spend anything from tens to hundreds of dollars. Ultimately, you have to decide how much money you want to spend on your crypto wallet and have this guide your decision-making.
Security Requirements
The point of a crypto wallet is to not only store your crypto but to keep it safe as well. This is why you have to consider the level of security you want out of your crypto wallet. While a paper wallet is free to get and use, there is the risk of the paper going missing and your funds becoming inaccessible. A hot wallet might be convenient to set up and use but they are more prone to being hacked or exploited by criminals on the internet. A cold wallet might be more expensive to buy and cumbersome to use but it is the safest of all the options. Depending on what level of security you want, any of these might be the right choice.
Token Compatability
The term ‘crypto wallet’ is quite broad and includes storage solutions of all types. But it is worth noting that not every wallet is compatible with every token. Some wallets are built to store Bitcoin and nothing else while some only support Ethereum-based tokens. Before you choose any wallet, look into the types of tokens it supports. If the tokens you plan to use are listed, then it might be a good idea to opt for them. Some crypto users are comfortable having multiple wallets for different tokens and some prefer having one, so decide which applies to you.
Planned Use
While you’ll be storing your tokens in your wallet, you’re probably going to need it to complete certain transactions. For example, you might connect it to a decentralized exchange, asset marketplace, game, and whatnot. Some of these platforms are only compatible with certain types of wallets and some go as far as specifying the wallet providers they will work with. To avoid getting locked out of these activities, you’ll need to look into what wallet types they accept and use this to guide your decision. Alternatively, you can create multiple wallets for different functions.
Conclusion
The crypto wallet you choose can set the tone for the rest of your crypto experience. Before you commit to any wallet, you need to consider certain factors. Think of the types of tokens you plan to hold and what you want to do with them, making sure you choose a wallet that will help with this. You’ll also need to consider the level of security you need and the price you’re willing to pay for this. Finally, look at the reviews from others to make sure you’re buying the best wallet possible.
Read more:
5 Things to Consider When Choosing a Crypto Wallet