Cryptocurrencies are digital decentralized assets or utilities. Since the boom in popularity in the last decade, more issues concerning cryptocurrencies have been occurring as well – how and where to store these digital funds and ensure their security?

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.

There are three types of wallets – 

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, as for example flash drives, are more secure because they are not connected to the internet therefore 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.

Crypto wallet is a service that creates the link between the person, using cryptocurrencies, and the blockchain. It is both a “vault” for one to store the cryptocurrencies as well as a gateway to perform transactions. Depending on the wallet, they might have integrated trading platform, or only storing feature. There are specialized wallets that are only meant to support one particular currency, as well as different kinds of cryptocurrencies – Bitcoin, Ethereum, Ripple, Litecoin, etc.

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 rather than active traders.

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 actually has to leave the block chain, 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.

As mentioned above, there are different kinds of crypto wallets to meet different needs.

So depending on one’s needs, there is different criterion in choosing the crypto wallet.

Our favourites are:

Software – , MyEtherWallet, Coinbase, coinmama,Uphold, Blockchain, Coinomi, Electrum

Hardware – Trezor, Ledger

There are several important points of research to do in order to choose a wallet that would meet one’s needs the best.

A potential user should look into the security history of the wallet – have there been recent successful hacking and/or data theft?

Is the wallet a good fit for a certain experience level? There are certain wallets for beginners, users with medium experience and absolute professionals.

What are the costs?

What is the value of the assets that are going to be stored in the wallet?

What is the difference between Trezor vs Ledger?

The Ledger supports 26 cryptos vs 1400 cryptos on the Trezor wallet.

The Ledger Nano S (known to some as the ledger wallet UK) costs £60 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.

The best place to buy Trezor wallet is from their site and likewise for the Ledger wallet.

You can compare all the different crypto wallets here.

What is the best Ripple wallet UK?

If you're looking for a software wallet there are a number of good options including exchanges that insure funds like Coinbase and Binance but we'd always recommend hardware wallets.

What is the best Ripple hardware wallet?

Trezor or Ledger are fantastic Ripple hardware wallets both are fantastic for storing Ripple.

Should I use the Cryptomate wallet?

Cryptomate is an exchange, we don't recommend using the cryptomate wallet.

What is better than Exodus?

Exodus is a great wallet but they don't guarantee your funds if hacked , unlike crypto exchanges , but the safest by sure is a paper wallet or a hardware wallet.

What is the best Bitcoin wallet UK?

The best bitcoin wallet UK is some dependent on your needs, since BTC is seen as digital gold in our opinion the best wallet is a hardware wallet like the Trezor wallet or the Ledger wallet, as it's a long term investment in our opinion. However if you're prone to loosing things the size of USB drives it makes much more sense to keep it on an exchange that guarantees hacked funds will be returned, like Coinbase.

What is the best Litecoin wallet UK?

It really depends if you intend on HODLing your Litecoin or not. If you see it as a long term investment then we'll always recommend a hardware wallet like the Trezor or Ledger wallet. If you want to trade or sell it then we recommend we

What's the best Dash wallet UK?

Ledger and Trezor both support Dash. We highly recommend those for storing your Dash.