How to Choose a Crypto Wallet

What Are Crypto Wallets and How Do They Work?

A crypto wallet is a digital tool that empowers you to manage your crypto assets securely. It resides on a blockchain with its unique alphanumeric address, ensuring it remains uncompromised even if your smartphone or laptop is compromised.

Crypto wallets consist of a pair of keys: a private key, which grants you access to your wallet across devices and should be safeguarded, and a public key, which facilitates interactions with blockchain platforms and other users.

Types of Crypto Wallets

Crypto wallets generally fall into two categories: hot and cold. Hot wallets offer immediate access to blockchain platforms, allowing you to manage assets and make transactions online. They can be further divided into custodial and non-custodial wallets.

Cold wallets are physical devices that securely store your funds on flash drives or paper sheets, keeping them offline and away from potential threats.

Custodial crypto wallets

Custodial crypto wallets rely on third-party services, which means an intermediary stores your assets and private keys while preserving your anonymity. These wallets often require Know Your Customer (KYC) verification to comply with anti-money laundering regulations, where users provide personal details. The platform encrypts this information, ensuring the privacy of users. Custodial wallets are an excellent choice for beginners as they offer protection and prevent interactions with suspicious platforms or unverified tokens.

If you lose your private key, password, or 2FA device, you can recover access to the wallet with the support team's assistance using the provided KYC documents. Blockchain platforms typically provide multiple security measures to safeguard users' funds. Even if fraudsters were to hack the platform and steal users' funds, there is a chance to recover stolen assets after the arrest of the fraudster, provided that the victims and the amount of stolen funds are known.

Custodial wallets are usually user-friendly and easy for beginners, as they require no additional blockchain technology knowledge. However, they come with a trade-off: if the platform you use is hacked, your assets may be at risk since the platform stores your private keys and is responsible for their safety.

Non-custodial software crypto wallets

Non-custodial wallets give you complete control over your funds and private keys, allowing you to interact with any decentralized finance app (dApp). However, they require vigilance, as connecting your wallet to a scam platform can result in hacking and the loss of funds.

These wallets employ seed phrases, a unique series of 12-24 random words, for access. To ensure security, the seed phrase should be stored offline, such as in a paper notebook. If you lose your seed phrase, you cannot enter your wallet as there is no way to recover the phrase. As a result, you lose your funds.

Non-custodial wallets are less user-friendly and are more suitable for experienced crypto users.

Non-custodial hardware crypto wallets

Hardware wallets are portable devices that store private keys in an offline environment, making them highly secure. Hardware wallets may help to sign transactions offline and connect blockchain networks, or they can be cold, meaning they only allow offline storing of private keys.

Hardware wallets are considered the safest option to keep crypto assets as they can't be compromised. Hardware wallets come at a cost compared to free software solutions, which may not be suitable for beginners or those who just want to experiment out of curiosity.

How Do I Choose a Crypto Wallet

While choosing a crypto wallet, you should consider several essential characteristics.

Safety

Safety should be your utmost priority. Look for wallets that offer robust security features like two-factor authentication (2FA), strong encryption, and the option for cold storage, which keeps your assets offline and away from potential online threats.

Custody

Consider the custody aspect; decide whether you want complete control over your private keys with a non-custodial wallet or are comfortable with a custodial service managing your keys on your behalf.

Currencies and networks supported

Evaluate the range of cryptocurrencies and networks supported by the wallet. Ensure it aligns with your investment portfolio, as different wallets may offer various coins and tokens.

User-friendly

Opt for a user-friendly interface that simplifies transactions and key management, making your crypto experience hassle-free.

Reputation

Research the wallet provider's history, user feedback, and track record for security breaches.

Customer support

Prioritize customer support, especially if you're using a custodial wallet. Check if they offer password recovery options to prevent losing access to your funds.

How to Create a SpectroCoin Crypto Wallet

SpectroCoin offers a safe crypto wallet supporting over 50 trustworthy and popular cryptocurrencies. To get started with SpectroCoin wallet, follow these steps:

1. Create a SpectroCoin account.
2. Confirm your registration via email.
3. Verify your account.
4. Use SpectroCoin crypto wallet.

Why SpectroCoin

Safety

SpectroCoin employs advanced security measures such as 2FA, encryption and cold storage. SpectroCoin stores 98% of customer assets in secure cold storage.

Multiple payment methods

You can deposit and withdraw funds from SpectroCoin wallet using one of these payment methods available worldwide: Skrill, Neteller, Payeer, Perfect Money, Advcash, SEPA, Faster Payments, Pacific Private Bank, Bankera or mobile top-ups. Deposits are available in USD, EUR and GBP.

Crypto card

You can connect the wallet to SpectroCoin virtual or physical card and pay worldwide, including online and offline, in cryptocurrencies.

IBAN

You can get a dedicated personal IBAN account linked to your wallet, thus receiving and withdrawing money directly to and from your SpectroCoin account.

Customer support

SpectroCoin Support Team is available 24/7, assists you with any cases, and gives more product details.