A digital wallet is a device, software or service used to allow you to store, send, or receive cryptos. So, how do you select the right one and set it up? Here are all the answers that you need:
What is a Digital Wallet for Cryptos?
A digital wallet is a program or application that allows you to securely store your crypto assets. Unlike conventional wallets, digital wallets do not hold fiat currencies, but they provide you with the right tools to access and manage the assets. Using a digital wallet for cryptos, you can also send, receive, and convert cryptos. Some wallets allow you to store only one crypto, but there are others that support multiple coins.
The wallets allow varying access to your private keys. Hot/ online wallets store your private keys so that it is possible to access them from any location as far as there is access to the internet. However, cold wallets store your private keys offline and you will need to have access to the hardware, such as Trezor or LedgerNano, to make transactions.
Digital Wallet for Crypto: How Does it Work?
A digital wallet for cryptos works with private and public keys that make it possible to operate on the selected blockchain.
The private keys are used to secure your cryptos against theft or hacking. They also make it possible for you to check the balance and run transactions. For every wallet, the private key serves as an additional layer of security.
The public key is like your bank account, which you give out to people who want to send you money. In the case of crypto wallets, the public address points to your wallet, allowing other people to correctly send you crypto coins. We must say that there is no limit on the amount that you can receive in a crypto wallet.
The Main Types of Digital Wallets for Cryptos
Digital wallets come in a number of categories:
- Desktop digital wallets for cryptos: These wallets require users to download the whole blockchain on their desktops. You need to have ample storage space to host the entire blockchain and a powerful PC. A simpler method is using third-party services that provide blockchain functionality.
- Web-based/ online wallets: Unlike mobile or desktop wallets for cryptos, these wallets work with browsers. The main advantage of hot/online wallets is that you can access them from anywhere and on any device with the internet and browser.
- Mobile wallets for crypto: These are apps designed to work on tablets and smartphones. They are very convenient for people who target transacting regularly and securely.
What is the Best Digital Wallet for Cryptos in 2022?
There are many digital wallets for cryptos that you can select and use in 2022. The decision on what to use largely depends on your needs, targeted level of security, and the device that you are using. Here are the main options that you should consider:
- Coinbase wallet for cryptos.
- Exodus crypto wallet
- MetaMask.
- Trezor wallet.
- Trust wallet.
- Bitgo wallet.
- Cloudflare.
- MyEtherWallet.
Should You Use a Crypto Wallet or Rely on an Exchange?
If your goal is to sell or buy cryptocurrencies regularly, a crypto exchange wallet might be a better option to a cold or hot wallet. Many exchanges allow users to save coins in their wallets and even trade without having their own wallets.
However, exchanges are the primary targets for hackers because they hold a lot of coins online. Therefore, it is recommended that you move the coins from the exchange to a hardware wallet or desktop wallet.
To keep your crypto coins safe, the wallets come with advanced features such as passcode-protection and multi-factor authentication.
Send and Receive Cryptos in Your hi Wallet
To make the process of receiving, sending, and converting cryptos simpler, consider using a hi digital wallet. hi digital wallet for cryptos also allows you to earn passive income in a number of ways:
- Earn hi by referring friends to join hi.com.
- Stake your HI dollar to receive some yield reward.
- Earn coins playing games on hi.com. Then, convert the HI dollars for fiat, BTC or Ether.
To get started on hi is pretty easy. You only need to access hi.com on Telegram or WhatsApp and type “hi” on the chat box. Then, a menu will appear, allowing you to open a wallet. A hi wallet will be created automatically with your account.