Cryptocurrency wallet is a way of storing them. It can be a program installed on a disk, a phone application, a website, a code written on a piece of paper or a device connected to USB. See, how to safely store bitcoin and other cryptocurrenciesso as not to lose them and not to be robbed.
The article is part of free training - Cryptocurrencies - how to start and survive? A course for everyone!
Cryptocurrency wallet - choosing a secure wallet
Each coin has its own blockchain, and everyone token uses blockchainu another cryptocurrency. Choosing a portfolio it depends on it in the first place from of from what blockchain network the cryptocurrency or token is used. If we send ethereum tokens to a cryptocurrency portfolio for storage of NEO network tokens, we will lose them forever. In cryptocurrencies we are independent and we have our own resources, so we have to take care of the security of their storage as well as the correctness of transfers.
First, let's make sure from which blockchainu the cryptocurrency is used. Then, let's prego what portfolios of a given type exist (more in a moment) that support this blockchain and the cryptocurrency that we want to store.
In practice, it is much simpler than you might think. Coiny have their own blockchain. These are crypto-currencies such as bitcoin, ethereum, EOS, cardano, litecoin and many others. Kryptowaluta having its own blockchain, most often on its official website, it offers its users and investors a cryptocurrency portfolio that it has designed. You can find the best monero wallet on the official monero website, etc.
Some cryptocurrencies allow issuing tokenson their blockchain. By far the most tokens use the Ethereum blockchain, that is, the ERC20 tokens. Other platforms for creating tokens include the throne, stellar, NEO, Binance, EOS. A full list of tokens and the name of the platform on which they were issued will be found pod tym linkiem.
For a specific token you are interested in, you can also check it in popular catalogs, like CoinMarketCap or Coinpaprica.
As you can see, if you want to find a portfolio suitable for storing VIBE tokens, you would be looking for a cryptocurrency portfolio for storing Ethereum network tokens, ERC20.
Cryptocurrency wallet - types, bitcoin and token wallet
It is not recommended to keep crypto currency on stock marketbecause then they belong to the stock exchange, not to us. The stock market may fall, become a victim of hackers or disappear. Cryptocurrencies should be kept on their own portfolio cryptocurrency, i.e. one to which only we have a private key. So what kind of wallet to choose?
Wallets in the browser, on the website, web, on-line
There are websites on which we can set up a cryptocurrency portfolio and store a given type of coins or tokens. They do not differ much from the cryptocurrencies. They store funds there, we do not have private keys to our portfolio, so we do not have our own cryptocurrencies. It may turn out that the website on which we log into our wallet will disappear and we will lose all our funds.
A cryptocurrency wallet in a smartphone
Comfortable to pay on a daily basis and frequent rotation of cryptocurrencies are a mobile wallet, installed as applications in smartphones. They will be useful in accepting cryptocurrencies as a means of payment or when using a bitomat (BTC ATM).
After installing such a wallet, when creating an account, we are forced to write down the seed code, which is our private key. This is in the event of a phone failure or accidental removal of the application. These types of wallets are safe, unless you let your phone fall into the wrong hands. It is worth to encrypt it, even if available in the android option. After encryption, we will be asked to provide a pin code each time the screen is blanked.
Despite these safeguards, it is rather not recommended to store large funds on mobile wallets and should not be treated as a safe safe for long-term cryptocurrency storage, because there are better methods for this, and the smarphone itself - like a desktop computer - may have a virus or its operating system gaps.
There are many different wallet applications for storing cryptocurrencies on your phone. At the moment it is difficult for me to point out the best or recommend any specific ones. I will only replace the cryptocurrency wallet Coinomi it is distinguished by great versatility, as it allows you to store hundreds of different cryptocurrencies with different blockchains, including the most popular tokens.
Cryptocurrency wallet as a computer program
Another type of wallet is a desktop application installed on a computer running Windows, Linux or Mac.
We start this cryptocurrency portfolio like any other computer program. We set up a wallet, as in the mobile application. We display our address, account balance, we have the ability to make transfers, as well as perform an encrypted backup of the wallet.
Similarly to the mobile wallet, our security depends mainly on ourselves. That our wallet password and private key file should not fall into the wrong hands, that our computer should be free from viruses, by mistake not to remove the wallet or not lose access to it.
Desktop wallets sometimes require us to download the entire blockchain, i.e. the database of the cryptocurrency. It can weigh many gigabytes and the download process can take many hours. However, in this way we become part of a dispersed network, strengthening its decentralization. In some blockchain networks, by having a certain number of tokens or coins on the wallet, you can create a network node and take part in approving its transactions. You will receive remuneration in the form of interest that affects our cryptocurrency account. This process is called stacking. Other types of networks make it possible to dig cryptocurrencies, for example through a simple wallet application.
The safest ones are paper wallets. They are only one-off and are used only when you want to store a given cryptocurrency for a long time. A paper cryptocurrency wallet is just a private key. It can be done off-line, so it is an effective method of securing funds against cyber criminals. Do not lose the ground, mistakenly do not throw away or destroy the card.
That's it the most recommended type of wallet, also working with others, such as a desktop cryptocurrency wallet (installed as a program on a computer) and a browser one.
In the case of a hardware portfolio, our private key is trapped in a physical device, which is connected with a USB cable to a computer, to authorize transactions made using a different type of wallet. This device is protected against the use of unauthorized persons with a pin code, which must be provided after its connection. We can safely store such a cryptocurrency portfolio at home.
The most popular hardware wallets are Ledger Nano and Trezor. Please note, Ledger Nano S has a ridiculous little memory. It allows for the simultaneous installation of only three applications. For this reason, he is discouraged.
How do I transfer cryptocurrencies to a Ledger Nano wallet?
In order to send cryptocurrencies to the physical wallet, we do not even have to pull it out of the drawer. A physical wallet is a private key that allows us to make outgoing transfers. Transfers entering a given wallet can be made by anyone, just as anyone can send an e-mail to a known address. Therefore, if we know the address of our portfoliorelated to our physical wallet, it is enough to copy it correctly to the "transfer addressee" field on stock marketfrom which we want to withdraw our assets.
What if we do not know our address? How to check it? How to send a token to a cryptocurrency wallet to store it safely? We will show on the example of the most popular ethereum network token, ERC20.
We connect our wallet to a computer with a USB cable. We provide the PIN set when configuring the device. We make sure that Ethereum application is installed on our Ledger Nero, which enables storing ETH and ERC20 tokens. We start it.
We enter any cryptocurrency portfolio dedicated to this network. In the example, we will use the popular MEW, i.e. My ether wallet. We go to the MyEtherWallet website. Select "Access My Wallet" and then the hardware wallet icon, ie "Hardware". We choose the brand of our portfolio.
MyEtherWallet connects to our Ledger, Trezor or other physical portfolio. It reads the account addresses associated with our device.
We choose one of the addresses, accept the terms and click "Access My Wallet" again. The next page shows the basic information about our account - its address and ETH status. If we want to transfer tokens or Ethereum to our wallet, we can copy the address to enter it when making a transfer from the exchange.
We can also address this address paste into Blockchain Explorer (according to our instructions) to conveniently check your account balance and transaction history. If you want to keep an eye on the state of your wallet, it's a good idea to make a bookmark in your browser for that particular page in Blockchain Explorer.