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Ever since the first crypto currency, Bitcoin, was launched - numerous digital currencies have been launched to date.

How to Choose a Good Crypto Wallet

Anna Johnson Anna Johnson , 1/30/2018
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Ever since the first crypto currency, Bitcoin, was launched - numerous digital currencies have been launched to date. With the advent of digital currencies, ancillary markets and support frameworks such as crypto wallets and exchanges have been launching at a similar rate. Just like conventional currencies need a place for storage, digital currencies require a storage facility too. With cryptocurrencies, this storage facility is software that is known as an e-wallet. The presence of large number of crypto wallets often confuses investors about how to choose a good crypto wallet. You can find a full list of wallets here along with features that each of those wallets offer. Here are some tips to select a good crypto wallet based on different criteria.

The Level of Security

The security level of a crypto wallet may vary. While many of them are high security, some are medium and low security wallets too.  The level of security of your wallet often depends on what type of wallet you are using such as hardware, software or paper wallet. It also depends on your service provider. Since wallets are the storage facility of your digital wealth, security is the key factor that decides its quality.

Hardware and paper wallets are slightly safer than online wallets since hackers cannot attack and steal data from offline wallets. However, regardless of which type of wallet you are using, you need to be careful about not losing your private key to any third party. You need to be aware that once a currency is transferred, the transaction can never be reversed. Make sure you have a backup of your wallet and you have added additional security layers in order to ensure maximum protection.

Single Currency vs Multi Currency Wallets

Although Bitcoin is the king in the world of cryptocurrency, there are over 1000 cryptocurrencies currently floating in the market. If you hold multiple cryptocurrencies, then it will be far more convenient for you to go for a wallet that supports multiple currencies at the same time rather than a single cryptocurrency.

Transaction Fee

Transaction fee varies from transaction to transaction. It is primarily a processing fee that is payable to the miners to process the transactions. In most cases you pay a bare minimum or set your own fee that you are willing to pay. The higher you pay, the quicker your transaction will be processed.

 

Anonymity

All crypto wallet transactions are recorded and exist on blockchain permanently. Although crypto wallets protect your private data by not making your name and contact details public, it is not impossible to track the user down using the data from his transactions. Dar Wallet project is the first effort so far that has tried to make transactions completely anonymous by using stealth identities. There are many reservations that exist in the financial and government fraternity about completely anonymous wallets. This is because completely anonymous wallets can often be used to facilitate illicit activities and can easily go unchecked.