Now that you have mastered the basics of cryptocurrency trading, and you’ve earned a good amount while you’re at it! Hooray! Great job!
It’s time for you to take your trading and investment knowledge to the next level. Now, you should think about how to safely keep the crypto that you’ve earned.
Anyone who’s ever traded in cryptocurrency before should have a crypto wallet…but what is it? How do you use it?
Let us cover those questions and more.
What the heck is a crypto wallet?
Cryptocurrency wallets are digital, (often) software-based repositories used to store cryptocurrency and make crypto trades. As of the time of this writing, there are already existing hardware wallets that look like thumb drives where you can store your digital assets even while offline.
Crypto wallets are to cryptocurrencies and other digital assets (such as NFTs), while bank accounts are to regular fiat money.
Without them, you wouldn’t be able to spend or transfer your coins, tokens, or NFTs.
Simply put, cryptocurrency wallets are a means to an end to securing your cryptocurrencies when you’re not trading.
How secure is a crypto wallet?
Otherwise known as blockchain wallets, cryptocurrency wallets are known for their security features so the danger of the funds getting into the wrong hand is minimal or does not exist at all.
All wallets have a feature that allows back-up through a seed key recovery in case something goes wrong with the wallet.
The idea behind seeds and key recovery is that you can restore your password if you have forgotten it or lost it in any way.
Some wallets have better privacy than others while some offer easy access to other users’ addresses where you can send and receive cryptocurrencies very quickly and even exchange one type of cryptocurrency for another with just one click.
Is a crypto wallet really necessary?
Think about it this way — if you had $1,000 in cash, would you just keep it around random places in your house?
Most of us wouldn’t! This is because someone peeking through your window could simply see it and decide to take it for themselves!
Although many cryptocurrency exchanges have extended security features and protocols in place, the risk of hacking always remains.
Having a crypto or blockchain wallet that you have full and individual control over may give you more peace of mind than most.
Which crypto wallet should you try out?
There is an abundance of options out there!
You may opt for a software app or hardware storage. But if you’re keen on a simple browser extension, then why not try out Pitaka?