digital-wallet-crypto

Digital Wallet for Crypto: Everything You Need to Know

A digital wallet for crypto lets you store and use your cryptocurrency in exchanges, online, or via an app on your smartphone. But how do you set up your crypto digital wallet, and which one should you choose?

What is a digital wallet for crypto?

A digital wallet is a software/application program that securely stores your cryptocurrency assets. They don’t hold the currencies but rather give you the tools to access and manage your digital assets in one place. Digital wallets can also be used to send, convert, and receive cryptocurrency from other users. Each cryptocurrency has its digital wallet and can store that virtual currency, though some wallets support more than one currency.

Different digital wallets allow different types of access to your private keys – hot digital wallets keep custody of your keys but make it easier to send, receive, and use your crypto. Cold wallets (hardware wallets) give you complete control over your private keys – so you’re always in direct control of your digital assets.

📖 What is a Digital Wallet: Your Comprehensive Guide

How does a digital wallet for crypto work?

A crypto digital wallet has private keys that allow you to sign transactions on the blockchain.

These private keys are vital since they help secure your crypto coins safely against hacking or theft. They also allow you to check their balance execute transactions and other services in your wallet. Additionally, the private keys provide an extra layer of security to your digital wallet.

Your digital wallet also comes with public keys, which is the wallet address you share with others so they can transfer crypto to your wallet. Unlike banks, there is no limit on how much cryptocurrency you can store in a digital wallet. If the value of a certain cryptocurrency unexpectedly rises, this might result in some significant gains. 

Types of digital wallets

Software wallets come in various forms, including:

  • Desktop wallets for crypto: These are two forms – “thick” and “thin.” Thick digital wallets allow users to download the entire blockchain on their desktops. They typically require lots of storage space on a reasonably powerful PC. Through third-party services, a thin wallet provides blockchain functionality. The thin wallet approach is much simpler to use.
  • Mobile wallets for crypto: These are conveniently available for use on your smartphones or tablets – an excellent option for hodlers who want to transact securely on a regular basis.
  • Web wallets for crypto: Web wallets like MetaMask allow you to send and store cryptocurrency via a web browser. The major advantage of web wallets is that they can be accessed anywhere and from any device.

Best digital wallets for crypto 2022

There are plenty of digital wallets for crypto to choose from. The decision really comes down to your needs, level of security, and what kind of device you’re using. 

Following are some of the best digital wallets for cryptocurrency:

1. Coinbase Wallet

Coinbase is one of the most popular digital wallets for cryptocurrency, and it is very secure. You can also use it to buy and sell bitcoin, Ethereum, Litecoin, and other cryptocurrencies. It is free to use, and the website is user-friendly.

2. Exodus Wallet

One of the safest wallets out there, Exodus is free to use and offers incredible features like Shapeshift integration and custom trading fee options. It has a “beautiful live chart” feature available on Windows, Mac, and Linux. In addition, Exodus is distinct in encrypting your private keys and transaction data locally for your eyes only.

3. MetaMask

MetaMask Wallet is a digital wallet that stores Ethereum-based tokens. It’s one of the most popular digital wallets for Ethereum, and it’s very secure. You can function on any computer as a browser extension or download it on your mobile device. Upon the installation of MetaMask, you will receive an address, which you can use to access your wallet. The new wallet created provides you with a seed phrase for added security. Ensure you store your seed phrase in a safe place.

4. Trezor Wallet

A good choice for those who want proper security, the Trezor wallet allows you to store your private key offline. It has a small OLED screen and two buttons so you can check transactions on the device itself. Trezor has the most robust security features and a solid track record of any hardware digital wallet.

5. Trust Wallet

Trust Wallet is another excellent option for storing your cryptocurrency offline. It’s straightforward to use and has many features, including support for the most popular cryptocurrencies and altcoins. It’s available on Android and iOS so that you can access your funds from anywhere.

6. Bitgo wallet

Bitgo Wallet is an excellent choice for those who want to store their cryptocurrency in a safe and secure place. It offers two-factor authentication, multi-sig security, and HD wallet services. Plus, it has a very user-friendly interface.

7. Cloudflare

The first of its kind, Cloudflare offers digital currency wallets backed by Cloudflare’s global network, providing extra security for your cryptocurrency assets.

8. MyEtherWallet

This is a digital wallet and a tool that allows users to generate new wallets and manage their private keys. This makes it an excellent option for those just getting into crypto. It’s also user-friendly, making it simple to send and receive digital currency.

Should I get a crypto wallet or use an exchange?

If you plan to buy or sell cryptocurrencies, you don’t need to keep your crypto in a cold wallet or get a hot wallet. Many crypto exchanges allow you to save your coins in an exchange wallet. Customers can even trade cryptocurrency within their existing accounts with some services, such as Robinhood and PayPal.

However, considering the security dangers associated with exchanges, relying only on this solution is not recommended. Make it a habit to move your crypto into your personal wallet after each trade. 

📖 Crypto Wallet vs Exchange: Which is Better for You?

Are crypto digital wallets safe?

Crypto digital wallets use advanced encryption to ensure that your funds are secure. And because digital wallets sit within your passcode-protected device, with payments often only possible via a PIN or two-factor authentication, they’re quite secure. However, hot digital wallets are vulnerable to hacking since they keep your private keys online. As such, only physical hardware wallet can offer the best protection for your digital assets.

Send and receive crypto in your hi Wallet

hi makes it very easy to send, convert and receive cryptocurrency in your hi digital wallet. Unlike the traditional banking system that only wants to make money from you, hi.com aims to make money for you. There are many ways to earn money with hi:

  • Earn HI by inviting your friends to join hi
  • Stake HI and receive yield rewards every month
  • Receive gift cards from friends and family on hi
  • Play games on hi to earn coins that you can then convert for ETH, BTC, or fiat

When you sign up to hi.com, you’ll instantly receive your own secure hi wallet right on your account. Your hi wallet offers the easiest and most convenient way to access your crypto with the hi ecosystem.

Here’s an easy guide on how to create your hi wallet.

  1. Access hi.com via Whatsapp or Telegram. Next, send type “hi” in the chat, and a menu will open, allowing you to create an account. Follow the instructions to complete the signup and access your hi wallet. When you create an account, your hi wallet is automatically created.
  2. To see if it’s working, transfer some amount of crypto to your wallet. Tap on the hi logo on the main screen to summon the menu, and click on Deposit
  3. Select the cryptocurrency that you’d like to deposit from the drop-down menu.
  4. Once you’ve selected the crypto you are depositing, let’s say USDT, copy the Deposit Address to your clipboard and confirm. Congratulations, you’ve just transferred crypto to your hi wallet.

Comments are closed.