Why do you need a wallet?
So, here you are, in a crypto world, looking for a perfect wallet to store your digital assets, but there is such a vast number of them that you are about to get lost, don't panic we are here to give you a hand and help to make a perfect decision, as we really care of you and your undoubtedle future success. Are you ready to be empowered with well-structured and fruitful information on crypto wallets? Let's get cracking then!
Custodial wallets VS Non-custodial ones
Once you’ve purchased some cryptocurrency, you need to make a decision which wallet to use, a custodial or a non-custodial one
- the first option means it’s centralized, and you'll have a third-party server who keeps your private keys, so it's perfect if you are afraid of losing them and want to be insured against risks; the problem is that centralized exchanges have been hacked by cybercriminals many times, jeopardizing their user's keys and crypto.
- the second option means it’s decentralized, you have sole control of your personal data and private keys, no third parties are there by your side, so you have to be careful and keep all the important information connected to your wallet properly. To learn how to master the security of your wallet, read our article on a related topic.
Do you prefer your wallet cold or hot?
Strange, but true - your wallet could be hot or cold, and it is a perfect moment to learn more about that.
Hot Wallets are connected to the net and quite easy to set up. The key advantages are:
- your funds are accessible 24/7, so if you don't have time or desire to deal with USB - connection and want to know what's going on with your account, that's the right wallet for you
- they are super friendly for a user - easy access and a quick installation is a big plus for having a hot wallet
- they are flexible which means they are open for growth and development, the variety of different cryptocurrencies is breathtaking
- they are more than affordable - you can get a crypto-wallet that meets all your needs and expectations for free
- they could be custodial or non-custodial; in case you forgot what it means, have a look at ‘Custodial vs Non-custodial Wallets’ part of the article.
Here are some disadvantages, as well:
- as your public and private keys are stored on the servers, they could be stolen, which is definitely a con
- a custodial wallet makes you dependent, so you don't have full control over your wallet
- you can lose everything once your wallet or a resource that provides a wallet was hacked or closed
Like we just said, hot wallets have variations, so it is time to draw some imaginary arrows in your mind, and the first arrow goes to a desktop wallet which is installed on a desktop or a laptop computer and provides the user with full control over the wallet. The second arrow flies to a mobile wallet that is installed on your smartphone. Finally, the last arrow strikes a web wallet that is an online service that can send and store cryptocurrencies and is considered to be the handiest, quick, and easy-to-use wallet whatsoever.
Was it too hot for you? Okay, it is high time to cool down a bit, which means we are going to face a cold wallet, sometimes called an 'offline' wallet. The fors and againsts of those are following:
- no third parties at all, as your wallet is not connected to the Net, and you have pin protection or even a biometric authentication, so it cannot be hacked
- you have a unique, device-generated recovery phrase in case you, by any chance, lose or damage your wallet, thanks to that phrase you can recover the assets you owe or get them imported to a new hardware wallet right away
- it's not always convenient to use such a wallet on the go or in public, that’s why it takes more time to manage the operations you need
- cold wallets are more expensive, especially comparing to hot wallets which are all almost free
- they don't have that break necking range of cryptocurrencies hot wallets have, and that could be a kind of problem if you have cryptocurrencies that are not that popular yet
That is not the whole story, of course, as cold wallets have their own gradation, as well - they could be hardware and paper. What is the difference? Here it is:
- A hardware wallet is a physical object (looks like a flash drive you carry around) where your cryptocurrency is accurately stored in an offline mode.
- A paper wallet is also offline, and it is a piece of paper where your private and public keys are imprinted, the most secure bestie among cold wallets but wears out quite quickly. The bad news is that once you lose it, it is gone forever with your crypto assets.
Which wallet would be best for you?
Of course, it is always up to you to choose the most convenient wallet for your personal usage, but we want to suggest our option - SimpleHold wallet.
Why? Because it is perfect both, for a complete beginner and for an advanced user. SimpleHold is a hot non-custodial wallet that is super easy to download and start using thanks to a clean, neat, and friendly interface designed with attention to every single detail.
The wallet allows you to send, receive and store your cryptocurrency holdings and keep tracking of your digital assets 24/7. It is absolutely free for downloading and easy to find on your browser toolbar. If you have Trezor or Ledger hardware wallets, you can synchronize your SimpleHold wallet with them.
In case you are eager to change your old web wallet for SimpleHold, you just need to import your private keys from one wallet to another. The range of coins you can work within SimpleHold is growing rapidly. You can choose the number of fees you want to pay for your transaction - slow, medium, and fast options are available.
On top of that, there is a backup tool in order to protect you from losing your seed phrases, private keys, and passwords without any third-party participation.