There are millions upon millions of cryptocurrency users out there in the world right now, and the digital money craze is only getting started. From games to groceries, to goodness knows what else, there’s seemingly no end to the number of storefronts that accept cryptocurrency as a payment method.
This raises the question, do you need a cryptocurrency digital wallet?
No one wants to be left behind as the future roars full-steam ahead. Do you need a digital crypto wallet to get into using cryptocurrency? And if so, do you know how to use digital wallet tech?
Fear not, because we’re here to explain it all!
What’s the Best Digital Wallet for Crypto?
First things first, you need to understand the different types of digital wallets.
Do you want a software or a hardware wallet? A software wallet is, essentially, an app. If you have an iOS or Android phone, you can download no end of software wallets right now and start storing crypto on them.
Hardware wallets are different. Think of them like USB hard drives, they need to be plugged in and powered to access the cryptocurrency stored on them. You have total control (which also means you have total responsibility for looking after it).
There are also custodial and non-custodial wallets. Custodial wallets (many software wallets are like this) mean you entrust the relevant private keys to a third party. Non-custodial means you have those keys (and responsibility!) yourself.
Finally, there are ‘hot’ and ‘cold’ cryptocurrency digital wallets. Hot wallets are connected to the internet — and thus vulnerable — while cold wallets store your digital currency offline.
You might have noticed a theme: control and responsibility. Most expert traders want non-custodial, cold, hardware wallets. They can shoulder immense responsibility in return for mitigating the risk of losing their money.
If you’re just starting out? Maybe just find the best digital wallet app for your needs and start there.
Why Do I Need a Cryptocurrency Digital Wallet?
The same reason you need a real wallet: to keep your money in.
Okay, yes, you have the option of keeping your money on exchanges, but wouldn’t your rather have it on you and under your command at all times? It’s your money, after all, why entrust it to someone else?
Plus, if you want to engage in regular exchanges with other crypto traders, having a set wallet address for them to send your money to is handy. And if you ever want to make a withdrawal at a bitcoin ATM, they’re useful. What is a bitcoin ATM machine, you ask? A very cool, very 21st-century device indeed.
Welcome to the World of Crypto
That’s our brief but deep look into the wild and woolly world of cryptocurrency digital wallets. It doesn’t matter if you’re a crypto baron or a totally digital money newbie, a digital crypto wallet has something to offer you.
Mostly, a place to keep your crypto.
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