Types of wallets
Types of wallets

Types of wallets

By Sankar Srinivasan | The Cryptochain | 14 Mar 2021


Types of Crypto Currency Wallets?

 

Have you just started trading in crypto currencies, or are you more experienced? Would you like to buy a small amount, or invest a large sum? Whatever it may be, you have to own a crypto wallet before buy, to store your crypto currencies.

Creating a bitcoin wallet is simple. There are roughly three types of wallets: 

1) Mobile and software wallets are free.

2) Hardware wallets are looks like a USB pen drive. You have to buy and store your crypto currencies. In the overview below you can see which wallet is suitable for your situation.

 

Mobile wallet

Managing your coins using a smartphone

  • Carry your wallet with you

  • Free

  • Less safe than a hardware wallet

 

Software wallet

Managing your coins using a computer

  • Managing your coins using your PC or laptop

  • Free

  • Less safe than a hardware wallet

 

Hardware wallet

Managing your crypto currencies from a physical device.

  • Safest storage method

 

How do I create a Crypto wallet?

Which wallet suits you best depends on several factors, such as what your buying needs are, and what you would like to use the bitcoins for. When you’ve just started buying bitcoin, an software wallet is the easiest and most user-friendly way to manage them. A much used free wallet is Coinomi. This wallet also supports other coins. In a single wallet, you can create multiple addresses for BitCoin, Ethereum etc.

Download Coinomi wallet and create your own wallet by yourself:

1. Go to the App store (iOS) or Google Play store (Android).
2. Open the app and click “Advanced wallet creation”. Then write down your 24-words recovery phrase. Very important, this will be the back up to your wallet! Write this recovery phrase in a paper or note and keep safe. Don't type and store in mobile or computer and don't share online.
3. Click on check box “I have safely stored my recovery phrase offline” and click Right Arrow.

4. Confirm your recovery phrase by tapping in order. Add set your password. Enough.

5. Bitcoin will be default. If you don't find bitcoin, press plus sign and add bitcoin. Then click on Bitcoin, it will show you balance and receiving address. This is my bitcoin receiving address. You can send Bitcoin to this address. :)

3KxBnJ5s1EfuT5ofAtwWdRihmyHZHhv1wY

6. Use your receiving address to receive bitcoin. When you send, enter recipients receiving address.

7. Tap menu icon. And you can find exchanges. You can buy and sell crypto currencies, through this exchange. You can find Changelly and other exchanges. You should open a account with a exchange.

8. Click Changelly and open a account. When you buy or sell crypto currencies in the exchange, copy and paste your crypto address in the exchange order screen.

Changelly Crypto Exchange

What’s a bitcoin receiving address?

A receiving address is similar to your bank account number. Each bitcoin wallet has a unique bitcoin receiving address. You can share this bitcoin address with others to let them know how to send coins to your wallet.

Please note!
For receiving as well as sending bitcoin, always copy and paste the receiving address. This lowers the risk of making a mistake. Don’t write or type the address. All cryptocurrency transactions are irreversible; once the coins have been sent, there’s no way of getting them back.

 

Hardware Wallets

A hardware wallet is a physical electronic device, built for the sole purpose of securing crypto coins. The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before coins may be spent. The two most popular and best Bitcoin and cryptocurrency hardware wallets are:

1) Trezor

2) Keepkey

 

Trezor Hardware Wallet

Recovery seed. Offline. Your entire wallet is always accessible via your personal 12 to 24 words long recovery seed.

Unique for you. When you first set up your Trezor, it will generate the seed for you. When you need to restore access to your wallet, use this offline backup.

Cross-compatible. The recovery seed follows a standard created by us at SatoshiLabs, but it is widely used, compatible with many wallet apps.

KeepKey Hardware Wallet

Stress-Free Security: Generate and manage your private keys offline in cold storage, guarded against computer vulnerabilities and viruses, while utilizing wallet software for safe transactions.

Comprehensive Crypto Management: Use ShapeShift's intuitive web-based interface to buy, sell, send, receive, trade, track, and hold your crypto.

Straightforward Backup and Recovery: Each device generates a 12-word recovery sentence during initialization that can be used to retrieve your private keys. Have peace of mind that your funds are secure, even if you lose or break your KeepKey.

If you have any queries on choosing wallets and trading, feel free to mail me or contact by WhatsApp +919042404390. Thank you

Sankar Srinivasan

 

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Sankar Srinivasan
Sankar Srinivasan

Certified Market Professional of National Stock Exchange of India


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