Unlike your euros, cryptocurrencies are not managed by banks, even if they have recently shown their interest. This is why it is your responsibility to store them reliably, so that they are safe from attempted theft or hacking. In this short guide, you will discover the best crypto wallets to choose from in 2020, in order to best protect your funds.
To understand how to store your cryptocurrencies (or cryptoassets), you must first distinguish between two types of crypto wallets. “Hot” wallets are online wallets, for example those offered by exchange platforms, or apps like Electrum and Atomic Wallet. These wallets have for them the simplicity of use, and a great speed. The downside, however, is that they are more vulnerable to attacks.
This is why investors who own a lot of cryptocurrencies also choose “cold” wallets. Cold wallets allow you to store your funds offline. That is, your Bitcoins, Ethers (Ethereum), Ripple, etc., are only accessible when you plug in your wallet. For this reason, it is almost impossible to hack them, unless you have physical access to them.
Now that you know the main differences between the wallets, it is a question of whether or not they adapt to your cryptocurrencies. The vast majority of wallets support Bitcoin, which remains the biggest crypto asset. But a Bitcoin wallet like eToroX, the Ledger Nano S, or Coinbase wallet, is often compatible with other cryptocurrencies (altcoins). This is the case for both offline and online wallets.
If you stick to the main cryptocurrencies, it's a safe bet that your wallet is compatible. But if not, you may need to download the project's native wallet, which was developed by the teams. The wallets are however updated regularly to include the latest altcoins.
Also note that some wallets have advanced features. They can include so-called "second layer" solutions, such as the Lightning Network for Bitcoin. Or even offer anonymity to users:this is the case of Wasabi Wallet. Some wallets are also linked to exchanges:this allows you to trade your cryptos without multiplying transfers. So it's up to you to compare the specifics to see which ones interest you the most.
Don't own a lot of crypto, and want to be able to trade it quickly, when Bitcoin goes up? Instead, turn to a hot wallet, avoiding storing your coins directly on exchanges. Did you buy Bitcoins in bulk and want to keep them for several years? In this case, you should choose a cold wallet in order to let them grow in peace.
Remember to enable two-step login (2FA) to ensure maximum security. And remember that your private keys are like your passwords:no one else needs to know them.
