Trading in digital cryptocurrencies is something that has become more popular around the world over time. It is now starting to rival more traditional ways of investing, such as stocks or FX, due to the number of new traders getting into it. It now has a market cap of over $4tn, for example, and coins such as Bitcoin have gained mainstream acceptance.
If you plan to trade digital coins, one thing you must get first is a crypto wallet (sometimes called a Bitcoin wallet). This is a special wallet that stores your keys and crypto details. With so many on the market though, it can be tough to find the best Bitcoin wallet in 2021. A good place to look for expert advice is AskTraders. AskTraders has a wealth of experience in this area and has some great impartial advice on which wallets to consider getting.
If you want a brief overview now though, the below are some things to look for.
Consider the type of wallet it is
When trying to find the best crypto wallet to use, you must take into account which type you prefer. In broad terms, you can go with a hot or cold storage wallet.
Hot storage wallets are connected to the internet and are convenient, simple and usually free. Of course, being connected to the net does mean that cybercriminals are a threat. Examples of hot storage options include mobile wallet apps, desktop wallets and web browser wallets.
Cold storage wallets are not held online and are usually physical ways of storing your crypto keys. The most common example are specially designed USB-style wallets, such as Ledger or Trezor. These are more secure due to not being connected to the internet. They are, however, open to being lost or even stolen.
Awesome security features
Any crypto wallet you opt for should come with decent security. This is especially true if you go for a hot storage option. You must check out in advance how data is encrypted, if two-factor authentication is used, whether there is regular data backup, and if private key details are held by you or on the company’s servers. As the recent $12m pNetwork platform hack showed, security in this market is no joke. Most crypto traders are also very sensitive over privacy. Make sure to read any terms around this and how they maintain your privacy.
Type of currency and customer support
It is also crucial to make sure that your preferred choice of wallet supports the coins you wish to trade. Some wallets support a large range of coins, while others are purpose-built for only one. In addition, you should look for a crypto wallet that comes with superb customer service. The cryptocurrency market moves so fast that it could be disastrous to wait unduly for queries to be resolved. It is also not nice to be on the end of unprofessional or incompetent service!
Reputation is key for crypto wallets
One of the key things to look out for when choosing the ideal crypto wallet is reputation. This simply refers to the general feeling there is around a wallet and how trustworthy people believe it to be. A crypto wallet with a good reputation is worth considering because you can be pretty sure that it is safe to use.
How do the companies behind popular wallets build a positive reputation with traders? It all starts with making a wallet that is easy to use, secure, and packs in lots of useful features. If these design basics are covered, then word will soon spread about how awesome it is. Online reviews and testimonials are another way that crypto wallets build their reputation.
If current users post details online of how amazing a wallet is or what great support it comes with, this enhances its reputation. Marketing is also key to establishing the reputation of a wallet. If a company uses paid online ads, social media marketing and traditional marketing channels well, it can soon establish its wallet as one that’s worth using.
Take your time when choosing a wallet
When you consider how valuable the coins you plan to store in it are, it really is worth taking your time when making a decision. You do not want to rush it and end up using a crypto wallet that is insecure, does not support the coins you trade, or does not offer excellent customer service. If you follow the above tips though, you should be fine.