Five Important Factors in Choosing a Crypto Wallet

gameramir2021/10/27 00:41

Choosing a crypto wallet can be difficult for newbies so here is a quick rundown of everything you must consider when choosing a wallet for you.

Five Important Factors in Choosing a Crypto Wallet

Five Important Factors in Choosing a Crypto Wallet

A crypto wallet is the crypto user’s best companion for anything related to the blockchain-based economy that is rising in popularity today. You will need one if you plan to become a crypto user. There are plenty of wallets that exist today as so many brands have their own vision of what a crypto wallet should be. 

There are many factors you need to know which can be summarized into five basic ideas. Each one corresponds to several features that are expected from a crypto wallet. Here are the five important factors that you have to consider when choosing the crypto wallet that suits your preference.

Goals in the crypto industry

The first factor is what you plan to do as a member of the crypto economy. Do you wish to be a trader? Are you settled on being an investor? Do you plan on using cryptocurrencies to play live casino games? Crypto wallets can offer solutions to anything you need but each one can be better than the others when it comes to specific scenarios.

Ethereum and ERC-20 tokens are great examples of this factor. If you plan on trading exclusively within the Ethereum network, then using a Web3 wallet like MetaMask is your best option. It helps you interact with the decentralized market and it supports a wide variety of ERC-20 tokens. However, it cannot store Bitcoin or other altcoins that do not circulate on the Ethereum network. 

Those who wish to be a trader for a wide range of assets may prepare more than one wallet. Each one interacts with a different network for various markets. However, it will be difficult to track one’s portfolio if this were the case. These assets could be traded at the same exchange so one can use that platform’s market to track all market changes.

Wallet reputation among users and affiliates

Of course, the reputation of the service provider must be looked into. It is always wise to consult experts for the top crypto wallets to use in terms of security and ease of use. Some of these experts may even go so far as to list down which cryptocurrency is the best for all types of users. Keep in mind that they are also traders and investors who use these types of services.

Wallets can be affiliated with other platforms such as exchanges and brokerages. Likewise, these partners will sometimes have blogs that detail their opinions on the services that they are paired with. You can rely on their detailed review because they can list what types of benefits you can expect as a potential user of the wallets that are subscribed to these platforms. 

Personal lifestyle and habits

You should always consider your lifestyle and habits when deciding on the type of wallet to use. It matters because each of these wallets may need special attention. For example, it is easy to steal your cryptocurrencies if you leave your wallet account logged in at a device that other people can use. An example of this is the library, the school laboratory, or your laptop that was left unattended. 

Logging out of your account every day should be enough security measures but hackers can steal your login information then attempt it at the same device that you used previously. If you are intent on using a software/cloud wallet, then you need a service with 2-factor authentication (2FA) security system. This way, you can detect if someone else is trying to breach your account from somewhere else.

Using a hardware wallet saves you the trouble of worrying about online hackers. All that you need to keep it safe is to prevent anyone from taking it. Even if it were stolen, it has additional security measures to ensure that only you can use your private keys. Unfortunately, it’s too secure to the point that users are locked out of their assets.

You should be careful with how you keep your passwords. The most important stream of code that you must protect is the seed which only gets generated once after you purchased the hardware wallet. This is your ultimate reset key for when you forgot your password or if your wallet was stolen and you wish to recover your assets on a different device.

Wallet features and customer support

Software wallets have the upper hand against hardware wallets when it comes to features and customer support. It’s meant to be easy to use and access with a lot of platforms but each one is still different from the other. 

Your options can be a lot simpler for the Bitcoin blockchain itself. It has the widest adoption in the world so you can expect that every wallet has all the features you need for trading BTC. If you are planning to store altcoins, then you may consider what type of platform endorses the wallet. More instances of getting mentioned is a good sign so choose the more popular one. 

Crypto casino, exchange, brokerage, and shop are your options. You can consult any of these businesses which wallet they recommend to their customers. Their answer will always factor in available customer services for users of those wallets.

Level of privacy and security

All wallets are secure as it is exactly what they are designed to be. The problem is that some of them can sacrifice ease of use for more intense security. A hardware wallet with both exceptional security and ease of use exists but it can be expensive. 

Alternatively, you can invest in the most secure crypto wallet that you can afford but only use it for storing your big savings. Use a software wallet that is easier to use for the amount of crypto that you are using more activities such as playing live casino games.

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