These days, users can choose from a variety of multi-cryptocurrency wallets depending on their user-friendliness, functionality, and type. One of the most important criteria for selecting a cryptocurrency wallet is its security features. In the cryptocurrency world, security and compliance should become your main considerations when choosing everything from a brokerage platform, such as Safello, to a cryptocurrency wallet for your digital funds. Remember that choosing a trusted digital wallet means securing your Bitcoins from hackers and possible scams.
In our previous article, we compared crypto hardware wallets recommended by Safello, such as Ledger, Trezor, KeepKey or BitBox. In this article, we will focus on multi-currency wallets as an alternative option for storing your cryptocurrency funds.
What is a multi-currency wallet
First of all, it is important to understand what a multi-currency wallet essentially is. One might think that a crypto wallet is similar to real-world wallets that we all use to store fiat money. However, a cryptocurrency wallet can take multiple forms: it can be designed as a software program, a physical gadget or a service. Based on its characteristics and the way cryptocurrencies are stored, all crypto wallets can be divided into two categories: cold and hot. Hot wallets (software, web, desktop and mobile wallets) are those devices that require internet connection to operate. Alternatively, cold wallets (hardware and paper) can function even without internet connection and use a real-world device to store all keys offline. Both hot and cold cryptocurrency wallets can be multi-currency.
A multi-currency wallet is a device or a program designed to store user’s private and public keys and carry out transactions with different cryptocurrencies that it supports.
Public keys help other users to identify your wallet if they want to send a cryptocurrency to a correct address. A private key is a unique access cipher that acts as a security instrument to confirm that other users cannot access cryptocurrencies kept in the wallet. Thus, while public keys can be compared to user names, private keys are special passwords that must be kept in secret. All wallets can also generate a unique address which is needed when making a transaction. You can also read what is a Bitcoin address in our blog.
Users need a cryptocurrency wallet to receive, sell and simply store their crypto funds. Unlike regular crypto wallets, multi-currency ones are meant to store more than one type of a cryptocurrency. Thus, instead of having several wallets with each of them supporting just one type of cryptocurrency, such as Bitcoin or Ethereum, a user can select a multi-currency wallet which can store all of them in one place.
If you are new to the cryptocurrency world, it might be challenging for you to choose a reliable multi-currency wallet that would fit your investor’s profile and needs. We recommend using hardware cryptocurrency wallets, such as Ledger, Trezor, KeepKey or BitBox as some of the most reliable and established wallets in the market. All of them support more than one cryptocurrency and thus can be considered as multi-currency wallets.
When choosing a cryptocurrency wallet, consider the following criteria that your future digital wallet should have:
- high security
- easy-to-understand interface
- supported cryptocurrencies
- guidelines on how to access your cryptocurrencies
The most popular and trustworthy hardware wallets are listed below.
Many hardware wallets are designed in the form of USB gadgets. Hardware wallets use high standards of security and impermeability to protect your crypto funds from hackers and scammers. They have an easy-to-operate design and are perfect for storing Bitcoins as well as other cryptocurrencies from your investment portfolio. Hardware wallets also offer a great backup functionality, micro storage and a QR code.
To sum up
With numerous cryptocurrency wallets that are currently available in the market, finding the most trustworthy option is not an easy task. Thus, make sure to consider all recommended options and make a conscious choice based on your profile, goals, strategies and preferences.