The cryptocurrency world keeps ballooning. The recent addition of blockchain and tokenization technology have made virtual currency more viable than ever. Experts are even projecting a complete digitization of traditional banking. In the face of such prospects many potential investors are taking a harder look at the digital market. Many have no idea how to even launch a cryptocurrency investment, let alone what to do with it. For instance, the first thing necessary to play in the market of virtual monies is a cryptocurrency wallet. Only by attaining one can an individual actually use digital currency.

What Is a Cryptocurrency Wallet

A cryptocurrency wallet is a secure digital storage unit for virtual coins. They are born of blockchain technology and provide a safe place for cryptocurrency transactions. They allow individuals to send, receive, and store digital currency. Most digital coinage has its own specific “official” wallet. For example, Bitcoin has an official bitcoin wallet that can be downloaded from the site. The wallet only works with Bitcoin though, so no other virtual coinage can be put inside. As the market is rife with different types of coins, each of which have their own official wallet as well, the collection wallets can get quite big. Going official is always good as it provides protection for investments and assures that genuine transactions will occur. There are third-party wallets, many of which are highly recommended for their ability to store different coin types but choosing one can be a bit of a gamble.

What to Look For in Third Party Wallets

Third party wallets come into play for individuals who are using online wallets. These are cryptowallets that are stored completely online. This makes them more vulnerable than a desktop wallet, which is downloaded onto a single computer, but allows multi-location usage. As desktop wallets are only available on the computer this is much more convenient, but the risk factor cannot be ignored. This is why third party companies would always be scrutinized. Word of mouth is good as the web is filled with customer reviews, so pay close attention to a company’s rep. Also, ensure that the company has open-source software, is friendly for beginners, contains good privacy and protection measures, supports multiple currencies, and has a wealth of features. Many prime wallets offer free services, but some cost, so ensure you know what charges apply before choosing. Some even have a crypto portfolio tracker attached to them.

Other Wallet Types

Besides desktop wallets that download onto a computer hard drive, and online wallets managed by various companies, there are other cryptowallets available. Mobile wallets have the same idea as a desktop wallet but are downloaded onto a phone. Some retail stores even permit the usage of a mobile crypto wallet. Hardware wallets are stored on portable disks, like USBs, which offers additional security. The different types of wallets relate to accessibility and overall security. They also relate to usage. If one stores Bitcoins they will want more security, one who uses Bitcoin regularly will want the convenience of availability.

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The cryptocurrency world keeps ballooning. The recent addition of blockchain and tokenization technology have made virtual currency more viable than ever. Experts are even projecting a complete digitization of traditional banking. In the face of such prospects many potential investors are taking a harder look at the digital market....