Best Wallet For Cryptocurrency : Cryptocurrency Wallet Recommended Ranking! Easy-to-understand Explanations Of Types And Mechanisms.

I often hear that "virtual currency should be managed in a wallet", but I don't know what a virtual currency wallet is in the first place.I can imagine that it's like a wallet, but I don't understand the differences and advantages of virtual currency exchanges.Virtual currency is also called cryptocurrency, and because it can be used as a currency, it literally has the aspect of an asset.

With virtual currency as such an asset, are there any concerns about theft? In this article, we will discuss cryptocurrency wallets.In addition, we will introduce recommended exchange wallets and other wallets with their characteristics, so please refer to them.

What is a cryptocurrency wallet?

A cryptocurrency wallet is a place where you store your currency. It would be nice to understand that it is an electronic wallet for storing virtual currency.By storing virtual currency in a wallet with a high security level, you can reduce the risk of it being stolen by hacking.

How the wallet works

A cryptocurrency wallet is a device service that stores public and private keys for cryptocurrency transactions. currency can be used.The public key is a code that anyone can check, but the private key is a mechanism that is not disclosed, and virtual currency can be protected by properly managing the private key.

The bitFlyer official website has the following information about the wallet.A wallet is a collection of bitcoin addresses with a private key (i.e. your own). The details are different for each wallet service, but you can manage multiple addresses with one wallet.

Differences between exchange wallets and non-exchange wallets

An exchange wallet is a wallet provided by an exchange, which is a place for trading (buying and selling) virtual currencies. Since the exchange manages the private key of the online wallet, there is a risk of losing assets due to trouble or hacking at the exchange.

Wallets other than exchanges have independent wallet functions, so you can manage your private key yourself or block it from online to increase the security level.There are mainly 5 types of virtual currency wallets!Virtual currency wallets are mainly divided into five types, including those that can be managed on the Internet and those that can be managed offline.Each has advantages and disadvantages, so use the wallet according to your purpose and protect your valuable assets.

There are mainly 5 types of virtual currency wallets!

Web (exchange) wallet

desktop wallet

mobile wallet

hardware wallet

paper wallet

A hot wallet is a wallet that can store cryptocurrencies while connected to the internet.While it is convenient for sending and receiving currency, it is also characterized by the risk of asset loss due to hacking and viruses. There are three types of hot wallets:

The bitFlyer official website has the following information about hot wallets.A hot wallet is a type of wallet that stores virtual currency while connected to the Internet. Also called hot storage.

Web (exchange) wallet

A web wallet is a wallet that stores virtual currency on the Internet, and is also called an exchange wallet.

As long as you have a device that can connect to the Internet, such as a smartphone or computer, you can easily send money, so it is recommended for people who want to easily manage virtual currency. The bitFlyer official website has the following information about web wallets.

Bitcoin wallets include desktop wallets (wallets on your PC), web wallets (wallets on the web), mobile wallets (wallets on your smartphone), paper wallets (wallets printed on paper), hardware wallets (dedicated There are various formats such as wallet terminal).

Desktop Wallet

A desktop wallet is a wallet that installs dedicated software on a PC and stores currency on the PC itself.It is recommended for those who often handle virtual currency on a personal computer because it is more secure than a web wallet.

Mobile wallet

A mobile wallet is a wallet that you can download and use on your smartphone or tablet.

Like a desktop wallet, it is more secure than a web wallet, and it is recommended for those who want to manage cryptocurrencies on the go, as it is characterized by the ability to manage transactions anywhere.

cold wallet

A cold wallet is a wallet that stores private keys offline without an internet connection.Since you can store your cryptocurrencies while they are disconnected from the internet, the risk of losing your assets due to hacking or viruses is extremely low. There are two types of cold wallets:

The bitFlyer official website has the following information about cold wallets.A cold wallet is a method of storing virtual currencies such as Bitcoin, and is also called “cold storage”. This is the storage method with the highest security level.

Hardware wallet

A hardware wallet is a cryptocurrency wallet that stores private keys on a hardware device such as a USB.Since it can be completely cut off from the Internet, the risk of loss due to hacking etc. is low, and it is a wallet recommended for storing large amounts of virtual currency.

The bitFlyer official website has the following information about hardware wallets. Bitcoin wallets include desktop wallets (wallets on your PC), web wallets (wallets on the web), mobile wallets (wallets on your smartphone), paper wallets (wallets printed on paper), hardware wallets (dedicated There are various formats such as wallet terminal).

Paper wallet

A paper wallet is a virtual currency wallet that prints and stores virtual currency addresses and private keys on paper.Like hardware wallets, this wallet is also more secure than hot wallets and is recommended for long-term storage.

The bitFlyer official website has the following information about paper wallets. This is a method of printing out the address and private key and storing them on paper. The main purpose is long-term storage, and it is the safest management method because it is completely blocked from the Internet.

What are the advantages of using wallets other than cryptocurrency exchanges?

It is possible to store virtual currency in wallets provided by exchanges, but is there any point in using wallets other than exchanges?From here, we will introduce the benefits of using wallets other than exchanges.

You can avoid the loss of assets due to exchange troubles

If you store virtual currencies held in exchange wallets, they are exposed to the risk of being lost due to troubles on the exchange side.

If the exchange that stores the currency is hacked or closed down, the currency may be lost, and the advantage of using a wallet other than the exchange is that you can avoid such risks.

Distributed storage is possible

If you use multiple wallets in addition to the wallet of the exchange, you can store your virtual currency in a distributed manner.

Even if each wallet is fully equipped with security measures, the risk of losing virtual currency due to hacking, viruses, hardware device failure or loss is not zero.

If you store your cryptocurrencies decentralized, you can avoid the worst situation of losing all your assets at once.

(Reference: bitbank official website "Security Measures")

4 points when choosing a cryptocurrency wallet

Virtual currency wallets have different characteristics depending on the storage location and service, so it is ideal to use them according to the purpose.

Here, we will introduce the points of how to choose a virtual currency wallet for those who do not know what kind of virtual currency wallet to use.

4 points when choosing a cryptocurrency wallet

Select wallet type

Select by type of virtual currency that can be stored

Choose high security

choose for convenience

Select wallet type

・Hot wallet

Hot wallets store cryptocurrencies while connected to the internet, making it easy to transfer currencies at any time.

On the other hand, it is recommended for those who frequently manage small amounts of currency because the risk of loss due to hacking is higher than cold wallets.

The bitbank official website has the following information about hot wallets.

A hot wallet is a type of wallet that allows virtual currency operations through the Internet.

Quote: bitbank official website “Hot Wallet”

 

・Cold wallet

Cold wallets store cryptocurrencies while they are blocked from the Internet, so it takes time to move the currency, but it is highly secure as there is no risk of loss of assets due to hacking.

Therefore, it is recommended for those who have a large amount of virtual currency or who want to keep it for a long time.

The bitbank official website has the following information about cold wallets.

A cold wallet is a wallet that is completely disconnected from the Internet, and in general, even in an offline environment, a smartphone or PC with a private key is not called a cold wallet.

Quote: bitbank official website "cold wallet"

Select by type of virtual currency that can be stored

In addition to the well-known “bitcoin”, there are various types of virtual currency, and as of 2022, there are thousands of types of issues.

Different wallets support different types of virtual currency, so be sure to check in advance whether the virtual currency you want to trade or the virtual currency you own is compatible.

Choose high security

Since the virtual currency wallet will be a storage place for virtual currency, it is also an important point that security measures are substantial. If your password is known to others, you may lose your assets by hacking.

As for security measures, a wallet that adopts two-step authentication that requires input for identity verification in addition to an arbitrarily set ID and password is highly secure.

(Reference: bitbank official website "Security measures for virtual currency wallets implemented by bitbank")

choose for convenience

Convenience varies depending on the type of virtual currency wallet. Hot wallets, which store virtual currency while connected to the Internet, are very convenient because you can transfer your assets at any time.

For those who frequently operate virtual currency, it is recommended to put the required amount of virtual currency in a wallet that allows easy remittance.

The bitbank official website has the following information about hot wallets.

Because it is connected to the Internet, unauthorized access such as crackers