Cryptocurrency Wallet

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Crypto Currency Wallet Comparison: You can create the right crypto currency wallet so easily!

Online or offline storage, cold or hot – with the many possibilities a crypto currency wallet comparison makes sense in any case. Online Wallets are not only flexible to use and offer easy access to the Coins, but they are also free. Who would like to provide on-line the Kryptowährung Wallet, should know however that there can be a safety risk. Differently however the hardware or Paper Wallets, because they offer maximum protection. How a crypto currency Wallet is optimally used and how the users themselves can provide for maximum security, we tested.

  • Cold and hot storage as wallet difference
  • Hardware and Paper Wallet offer maximum security
  • Online Wallet are offered free of charge
  • Wallet owners should never give out their private key

Crypto currency Wallet comparison: optimal protection for Bitcoin and Co.

There are various wallets that traders can use to store their purchased Bitcoin and Co. as securely as possible. The art consists of finding the suitable crypto currency Wallet with the large selection.

WHY CREATE A CRYPTO CURRENCY WALLET?

Before it concerns, which Wallet crypto currency is the better choice, we look at ourselves, why a Wallet is at all so essential and the safety level so important. If the traders decide to trade the coins or tokens directly at the exchange, a possibility is needed to store the crypto currencies after the purchase. We already know it from the classic fiat money, because coins and bills are known to be kept in the physical wallet. If we want to pay something with it, we take out the bills or coins and pay our bills with them. The crypto currencies do not exist physically, so it is not possible to manage them in a conventional wallet. This is exactly why it is necessary to have a crypto currency wallet. In it the keys to the coins are managed together, because the crypto currencies are actually different character strings called coins.

Note: Whoever wants to create a crypto currency wallet has two keys: public and private. The public key is similar to the account number, the private key is the pin with which the wallet owners access their credit. When trading, wallet owners should always deposit only the public key with the Crypto Exchange, never the private key.

Best Wallet for Crypto Currency: these are the possibilities users have

After we know why a crypto-currency wallet is actually needed, we look at the different types of wallet that actually exist. The distinction is first made according to the two storage variants: cold and hot. Both have besides in their respective function individual Wallet solutions, with which the users can work. With the hot storage they are:

  • desktop wallet
  • Mobile Wallet
  • online wallet

Cold storage includes the Paper and Hardware Wallet. Now let’s look at which of these options is the best wallet for crypto currency.

DESKTOP WALLET

The Desktop Wallet, as its name suggests, is downloaded to the respective PC and installed there. The wallet owners have access to their crypto currencies from the PC where the Desktop Wallet is located. Compared to other online wallets, the desktop wallet offers a higher level of security, but it could still be attacked by hackers. For example, if there is a virus or other malware on the PC, attackers would have the possibility of accessing the credit in the crypto currency wallet and, in the worst case, stealing it. In order to avoid exactly this, we recommend that you regularly run a virus scan on your PC and keep your security software up to date.

MOBILE WALLET

In the crypto currency wallet test, of course, a mobile wallet must not be missing. It is specially designed for the use of mobile devices, the smartphone and the tablet. So that it can be used, the users must install an App and can use then the Wallet on their terminal equipment. Compared to the desktop wallet, however, such applications are much smaller, since the storage space on the smartphone or tablet is naturally also limited. The mobile wallet offers quick and easy access to the coins, but it also involves a risk.

PUBLIC NETWORKS AS A RISK

Who would like to buy its for its Wallet crypto currency, should always pay attention to sufficient security. Many Wallet owners underestimate however the dangers, which hold ready the Internet and/or on-line access. Straight one mobile Wallet is used frequently in between, in order to query simply the stocks, because with the Smartphone or Tablet is it so practical. However, anyone who logs on to public networks for this purpose exposes himself to the risk of hackers. If the public network is not sufficiently protected, for example, they could use this vulnerability to access the wallet and, in the worst case, steal the coins. Therefore, we recommend not to use public networks at all when accessing the wallet and to act only within your own secure network. In addition, users should also carry out regular security scans on their mobile device to detect malware on their smartphone or tablet.

ONLINE WALLET

The online wallet crypto currency does not require any download or installation of any software, because the users access it online via the browser. They can start for example directly over the PC or the Smartphone as well as Tablet the inquiry. In contrast to the desktop or mobile wallet, the effort required to use it is much less, because wallet owners neither need the storage space on their PC nor do they have to install an application. However, the online wallet is not the best choice when it comes to security. The crypto currency wallet test shows that access via the browser also carries some risks. For example, if the Internet connection is not encrypted or sufficiently secured, hackers also have a good attack surface to log in via this connection together with the wallet owners and manipulate the wallet.

PAY ATTENTION TO SECURE CONNECTION

In order to minimize the risk of online access, users should ensure that they use a secure connection when accessing the site. It is visible with the green lock symbol in the browser. At best, the wallet provider has a certified security system to provide maximum protection for the data transfer. However, experience shows that such certificates are still scarce among wallet providers, although this does not automatically mean that the wallet is insecure.

Tip: if you want to store your crypto currencies (temporarily) as easily and free of charge as possible, the online wallets can be a first port of call. For a longer safe administration we recommend however the cold storage.

Cryptocurrency wallet comparison: cold storage with offline wallets

In our opinion, the best wallet for crypto currency is actually an offline wallet. Available are these wallet types as:

  • Hardware Wallet
  • Paper Wallet

The hardware wallet differs from the software wallet in that they store a user’s private keys on a hardware device such as a USB device. Although hardware wallets perform transactions online, they are stored offline, which increases security. Hardware wallets can be compatible with multiple web interfaces and can support multiple currencies. This gives wallet owners several ways to store Bitcoin, Litecoin or other crypto currencies in parallel in one wallet. It is also easy to carry out a transaction. Users simply plug their device into any Internet-enabled computer or device, enter a pin, send a currency and confirm.

ALLEGED DISADVANTAGES OF HARDWARE WALLET: THE COST

Despite the advantages of the Hardware Wallet, we do not want to ignore the disadvantage: the costs. If you decide to use a Hardware Wallet, you have to purchase it once and pay a price that can vary depending on the provider. But there is for the Wallet owners however the maximum security, which we could determine in the crypto currency Wallet test at all. The hardware wallet is therefore ideal for storing large amounts of coins for a long period of time.

Tip: Who would like itself to make for example the tax advantages by a long holding time of the crypto currencies to use, which should fall back in each case to a safe storage possibility, in order to be able to sell after the minimum holding time of one year the Coins profitably and save the taxes on the sales proceeds.

PAPER WALL

The crypto currency wallet made of paper is particularly easy to handle and is available free of charge. The term Paper Wallet refers to the copy or printout of the public and private keys on a piece of paper. The wallet can be generated online for particularly easy use, so that the owner does not have to laboriously write the entire keys on the piece of paper. Since experience has shown that wallet keys have a certain length, handwritten notes are far from being as convenient and, of course, are prone to errors if they are inadvertently made. Therefore, we recommend to actually use the Paper Wallet Generators online to print out the piece of paper several times at best; to manage it securely in different places.

HANDLING OF THE PAPER WALLET

The transfer of Bitcoin or any other currency to the Paper Wallet is done by transferring funds from the Software Wallet to the public address indicated on the Paper Wallet.

PROTECTION OF THE PAPER WALLET

As we can imagine, a Paper Wallet is susceptible to dirt or damage, because the piece of paper can, for example, tear or fade when exposed to light. In order to protect the Paper Wallet and with it the coins inside, we recommend to place the Paper Wallet in a place protected from light and even to cover it with a foil. This way the Paper Wallet is protected in the best possible way and the owners do not have to fear that the keys on it become illegible.

Selection of the crypto-currency Wallet: the users should consider

With the selection in the crypto currency Wallet comparison the decision is often difficult, which Wallet is at all the correct choice. There is not the one or the best crypto wallet, because all have their advantages and disadvantages. Each Wallet owner has different requirements to its Wallet and looks therefore for different criteria. Based on the experience of the crypto currency wallet test, we have collected some of them, which may help you to choose a crypto wallet more quickly.

FREE WALLET OR NOT?

When selecting a wallet, it is often a question of whether it is free or not. Some wallet owners do not want or cannot afford to pay any costs to purchase or use the digital wallet at all. The online wallets or the paper wallet are free, although we prefer the paper wallet for security reasons. However, the Hardware Wallet is not available free of charge, because users have to pay a one-time purchase price for it.

SECURITY ASPECT

In our opinion, security plays a major role in a wallet, because if it is not sufficiently secured, hackers could access it and steal the coins. In the past, there have been countless attacks in which millions of Bitcoin and Co. were stolen and never returned to their owners. This not only shattered confidence in the crypto market, but also brought down prices. That’s why it is important to have security in a wallet.

USABILITY

User-friendliness also plays a role in wallet selection, because not every wallet is easy to use. Who makes however the first going attempts with the direct trade of Bitcoin and CO., would like naturally also a as user-friendly as possible Wallet, which functions almost self-explanatory. With on-line Wallets the installation is usually completely easy. Also the hardware Wallets are meanwhile in such a way conceived that the users are led step by step in the installation process and can convert this more easily.

WALLETS IN ENGLISH LANGUAGE

Experience has shown that most wallets are now also available in German, but there are still providers who concentrate on English. Especially with such Wallets it can be difficult during installation, because the whole registration process is not always possible due to the language barrier.

EQUALITY

Yes, the convenience of wallet use is also crucial, because not every wallet is actually suitable for buying or selling coins quickly. Especially with offline wallets, the transfer is not always possible immediately, because the transaction is first created offline and then realized by connecting to another device. However, if the wallet owners want to use a crypto currency as a means of payment (as with Bitcoin), for example, the coins should be retrievable quickly. Here we recommend that online Wallet to use and there however only smallest Coins quantities to reproach.

Security of the crypto currency Wallet

The security plays in the crypto currency Wallet comparison likewise an essential role, because the Wallet owners can contribute even to a increased safety level. We already know that there are significant differences in security between online and offline wallet. The on-line Wallets are not necessarily always insecure, are not suitable however for the longer storage period due to the possible hacker accesses. How can wallet owners themselves contribute to increasing security?

SECURE COINS

We recommend that you manage only small amounts for daily use online on your PC or mobile device. Wallet owners should always keep the majority of coins in an offline wallet.

CREATE BACKUPS OFFLINE

There are now many wallet providers that offer the possibility of backups. Users should definitely take advantage of this service to create an offline backup of their wallet and be able to access the backup in case of theft or other damage.

ALWAYS UPDATE SOFTWARE

To increase the security of the wallet, we also recommend that you always keep the software on your PC and mobile devices up-to-date. It is also important to regularly check for viruses or other malicious software, for example to detect Trojans or other cyber malware on the PC.

IMPLEMENTING SECURITY LEVELS

Each wallet should have as many security levels as possible. Each additional level makes it more difficult for hackers to access the wallet. For example, 2-factor authentication should be enabled and passwords should be chosen so that they are as difficult as possible to crack.

Use crypto wallet at Exchanges

The crypto currency Wallet is a condition for it, if the traders at a crypto stock exchange Bitcoin and CO. would like to trade directly. According to experience the stock exchanges offer usually with the opening of the Trading account also a free Krypto Wallet. This is often an online wallet, which can be used for the first trading entry in principle. Who plans however a longer-term activity and above all the administration of larger amounts in the Wallet, should fall back to an offline Wallet.

LINKING THE WALLET WITH WALLET

The wallet must be linked to the trading account at the Crypto Exchange, whereby the public address is decisive. Traders should never leave their private address from the wallet anywhere, let alone give it to others. Anyone who has the private address could theoretically access the wallet and manipulate/remove the coins there. With the registration on the crypto exchange the public wallet address is deposited, because it shows the path where the acquired coins are transferred to.

ANONYMITY WITH WALLET ADDRESS ONLY PARTIAL

Many crypto-currencies are considered anonymous; Bitcoin also had this claim when it was introduced. However, anonymity is only guaranteed to a limited extent for many Internet currencies, because the transactions are stored in the block chain. Although no personal data is visible, the amounts transferred and the wallet addresses are. Only on the basis of the public addresses it is hardly possible for other users to draw conclusions about the actual person behind them, but nevertheless anonymity is not given by the records of the block chain.

THIS IS HOW TRADING ON THE CRYPTO EXCHANGE WORKS

If the traders decide to actually become active at the Exchange and to acquire Bitcoin, Litecoin or other crypto currencies, the Wallet becomes an indispensable companion. Who would like to buy the Coins, needs for it own capital funds. That can be deposited for example in the form of Fiat money or other Kryptowährungen. For the purchase it is crucial that the market gives also the purchase; the prices are naturally particularly low. So that the dealers can use an optimal course development, it applies to accomplish the analysis. The technical analysis works supporting thereby, because it can be used also for less experienced traders more easily. With the help of historical data, traders can draw conclusions about future price developments and look for possible downtrends.

MAKING THE RIGHT USE OF DOWNTRENDS

If there is a downward trend, this is a good signal for traders to prepare for trading. If you do not want to wait for a developing downtrend, you can already invest when the trend starts. However, we recommend to be patient and let the downtrend run; at best, until it is close to a trend reversal. Then, according to experience, the price is lowest for the current market situation and the purchase can be worthwhile. By the trend reversal the traders have additionally the chance to sell quickly again profitably and then to invest immediately again in a crypto currency at the next downward trend.

PRICING IN THE CRYPTO MARKET AND THE EFFECTS ON THE HOLDING TIMES IN THE WALLET

The crypto market shows enormous volatility, although this can of course be more or less pronounced for some crypto currencies. Nevertheless, this volatility can mean that traders often have to wait a long time for the ideal time to trade. Therefore it is all the more important that a wallet offers secure storage and that the owners know the coins are safe for several months.

CRYPTO-MARKET IS EXTREMELY INFLUENCEABLE

The crypto market is influenced by various factors that are not always so obvious at first glance. Above all, the uncertainty of investors is often immediately noticeable on the market, for example when coins are stolen again by hackers or there are disputes in the crypto communities. In order to enable traders to take such factors into account when making their trading decisions, we recommend that they always keep track of the latest crypto-messages, for example by sending them as SMS, push, notification or e-mail. More and more crypto exchanges or brokers are offering this service to their investors in order to prepare them for trading activities in the best possible way.

TIP: FUNDAMENTAL ANALYSIS MORE PRECISE ANALYSIS

Technical analysis offers less experienced traders the opportunity to make forecasts about the price development, which of course do not always have to be 100% accurate. There is no guarantee of security for any analysis, because the market can always develop differently due to unforeseen factors. Nevertheless, traders can mitigate the supposed residual risk in technical analysis by additionally consulting fundamental analysis, for example. The fundamental analysis takes into account the current market data, so that the analysis is not only based on historical data.

Crypto Wallet also for Mining and Faucets

The crypto wallet is not only required for direct trading on the stock exchange, but also for example for miner activity or faucets. With mining, for example, users make their computing power available to participate in transaction processing and thus earn coins. Of course, these units also want to be managed somewhere. Therefore, linking to the crypto wallet is mandatory here as well. For the short term storage the free on-line Wallet is recommended according to crypto currency Wallet comparison. If the users earned however with their Mining activity already larger quantities, we recommend, the transfer into an off-line Wallet.

NOTE: MINING PROFIT BEFORE CALCULATED

Not always does the activity as a miner actually make sense, because the computing effort is enormous. The users often have to pay high electricity costs to be able to process the transactions at all. If the reward is then small and the price of the crypto currency likewise, the activity is usually not worthwhile itself. We therefore recommend to use a profitability calculator before starting with mining to determine the actual profit. Necessary for this are only a few details, such as the hash power, electricity costs, expenses for hardware or the fees for the membership in the mining pool.

FAUCETS SECURE FREE COINS

Many users do not even know that they can also secure themselves off crypto exchanges or without the activity as Miner Coins. The so-called crypto faucets make it possible. These are projects that run as a website or mobile application and where users simply have to register with their public wallet address. The requirements for the reward of free coins depend on the project in question. Sometimes it can even be that the users do not have to do anything at all, but are paid out automatically at regular intervals in small amounts of coins into the wallet. However, experience shows that many projects give their users easy tasks. These include among others:

  • Answering questions
  • Participation in test
  • Feedback on games

The effort is, for example, comparatively low when measured against mining, but the reward is of course also low. Only the smallest shares of Bitcoin and Co. are actually spent, so it can take a long time until a larger amount is actually available in the wallet, which the users of the Crypto Exchange can sell. However, those who show stamina can be rewarded with profit from the sale. To optimize the free coins, we have another insider tip: users can register with several faucets at the same time and profit from the free coins several times over.

Result: Crypto currency Wallet comparison helps fast with the selection

A crypto currency wallet test is carried out under different aspects, whereby numerous criteria for the wallet comparison are considered. Since there are meanwhile not only innumerable crypto currencies, but also Wallet kinds, a comparison is recommendable in each case. For a secure storage, especially offline wallets (hardware and paper wallet) are predestined; online wallets offer more flexibility, but are much less secure. For short-term storage of small amounts of coins, however, an online wallet is suitable in any case, although the owners should pay attention to the security of data transfer. On the other hand, if users want to store coins for more than a year (for example, to benefit from tax advantages), we recommend a hardware or paper wallet. The Paper Wallet is even available free of charge and can be easily generated online. However, the wallet is only necessary for direct trading at crypto exchanges or for mining activities. If users take advantage of the opportunity to trade with the crypto broker, they do not need the wallet.

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