Clara's best Crypto Wallets.
How do crypto wallets work?
What is a crypto wallet?
Just like for keeping physical banknotes, there are wallets for digital assets as well – so-called crypto wallets are created to access and store one’s crypto funds, authorize transactions, and secure the funds.
What kind of crypto wallets are there?
1. Software (accessible online or web, mobile apps)
Software wallets are more suited for those who perform more transactions – using software on one’s phone or computer offers higher mobility of the assets.
2. Hardware (physical devices, that are not connected to internet)
Hardware wallets, that look like flash drives, are more secure because they are not connected to the internet so much less accessible for the third-parties – it is a better choice in a long-term perspective for the patient investors and Hodlrs.
3. Paper (printed out QR codes or a sequence of letters and numbers).
And lastly, paper wallets, are physical printed out QR codes, that are the least flexible type as they are easily damage and only allow to move the whole amount of one’s funds.
What is the purpose of a crypto wallet?
There are different types of mechanisms as of how the crypto wallets operate – hot wallets are designed for those willing to operate with their cryptocurrencies more intensively and are connected to the internet. Cold wallets, also referred to as “cold storage” are basically the vaults best suited to store one’s crypto and are more suitable for long-term investors.
Are crypto wallets safe? What are crypto wallet safety mechanisms?
Crypto wallets contain several essential safety mechanisms: so-called keys that allow authorization of certain procedures – just like in online banking: usage of certain disclosed codes to ensure the safety of the funds. In the case of crypto wallets there are two types of keys: public and private. The main difference between them is the purpose of the procedures they authorize.
So the wallet generates multiple public keys that are meant to perform a safe and accurate transaction. Once a user decides to send or request an amount of crypto currency, public key generates a block chain address, that, once sent to another crypto wallet user, grants the smoothness of the transaction – the money never leaves the blockchain, it is just moved from wallet A to wallet B.
Then there are private keys – they are essential for the safety of the user’s funds. Private keys grant access to the most sensitive data and must be kept extremely attentively. As an integral part of the security mechanism, private key allows reaching the assets within the wallet, authorizing and granting transactions. Securing private key carefully, grants access to one’s funds smoothly even if the main device – a laptop or mobile phone is damaged or lost.
The most important part of keeping the crypto funds safe within these wallets, is to constantly creating back-ups, using encryption, choosing strong passwords, using safe locations, and keeping the login information safe.
What are the best crypto wallets?
Our favourites are:
Software – MyEtherWallet, Coinbase, coinmama,Uphold, Blockchain, Coinomi, Electrum
Hardware – Trezor, Ledger
What is the Trezor Wallet?
Trezor vs Ledger
The Ledger supports 26 cryptos vs 1400 cryptos on the Trezor wallet.
The Ledger Nano S costs $59 and the Trezor One costs $55.
The Ledger works with Windows, MacOS, Linux, iOS and Android. Whereas, the Trezor has the same except no iOS app.
You can compare all the different crypto wallets here.
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MyEtherWallet's web client allows users to buy, sell, and manage their Etherum within any web browser. Features support for ERC-20 tokens and offers customizable transaction fee rates that can either be set by the user or tied to preset transaction speed levels.Visit website
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Coinbase's mobile wallet allows users to buy, sell, and manage up to 8 different cryptocurrencies within a secure, free to download application available for iOS and Android smartphones. Does not require a registered account with Coinbase to use and features support for ERC-20 tokens. Coinbase also provides two-factor authentication protection and offers transaction fees that vary based on the size of the given transaction.Visit website
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Jaxx Liberty's mobile wallet allows users to buy, sell, and manage up to 90 different cryptocurrencies within a secure, free to download application available for iOS and Android smartphones. Does not require a registered account with Jaxx Liberty to use and features support for ERC-20 tokens. Jaxx Liberty also offers transaction fee rates that are tied to preset transaction speed levels.Visit website