Why do I need a multi cryptocurrency wallet ?
Without a doubt, Bitcoin continues to be the most popular and famous cryptocurrency.
It is used to judge the state of the market, the development of the industry as a whole, etc.
This is confirmed by the dynamics of the exchange rate of the remaining crypto assets, which for the most part follow BTC.
However, gradually the role of the first cryptocurrency begins to decline.
At present, many other interesting projects have been created that, in terms of technical capabilities, are often significantly superior to Bitcoin or even oriented to applications in areas where its integration is problematic.
As a result, an increasing number of people are interested in how to buy altcoins and other coins, and also where it is better to store them.
xrp price prediction And if there are no difficulties with the first, it’s enough to go to some popular crypto-exchange or a reliable exchanger, then the second question is critical, because we are talking about real assets.
Fortunately, there are already a sufficient number of solutions that allow you to store all cryptocurrencies in one wallet because it is much better, not to mention the fact that this method is more convenient from a practical point of view.
These cryptocurrency wallets are called multicurrency.
Separately – is it bad?
Does this mean that there is no alternative?
That any user who has bought several other assets, in addition to BTC, must necessarily establish a multi cryptocurrency wallet because these are the unwritten rules?
No, in this case, everyone chooses for himself which method is more convenient for him.
For example, some token holders prefer to use a separate wallet for each cryptocurrency.
This approach is not without common sense, because in this case the situation is much better from a security point of view – a hypothetical attacker will be able to steal only part of the funds, but not all at once, because each wallet will have its own private key.
If you store them in a safe place – the risk of losing savings is generally minimal.
But is everything so good? Are there any serious disadvantages? Yes, without them, too, could not have done.
First of all, placing cryptocurrency assets in different wallets is inconvenient.
If the best multicurrency solutions allow you to worry about the safety of only one private key, then there will be many of them.
And the loss of any will lead to the inability to access one or another cryptocurrency.
And if stored on exchanges?
But what if you initially abandon the idea of using a cryptocurrency wallet, for example, a cryptonator wallet, to store assets, preferring directly to trading platforms?
Moreover, this is at least very convenient, because most of the popular sites work not even with dozens, but with hundreds of altcoins.
And you can keep all of them in your account, without having to wonder about which wallet to choose for cryptocurrencies, so as not to worry about your savings.
It would seem to be a great option.
But there is also a number of its features.
In particular, you have to come to terms with:
- transfer of assets for storage to a third party;
- centralization of most cryptocurrency exchanges;
- risk of suffering from a hacker attack on a trading platform.
If the token holder simultaneously conducts active trading on the exchange, then the choice is obvious, but for ordinary users there is no reason to keep significant amounts of funds on such sites.
It is much better to watch multi crypto wallets, because only the owner of the coins will have a private key.
Store cryptocurrency online
Since cryptocurrencies are digital assets, you can, of course, store them online, using, say, the cryptonator service or the like.
This wallet, in particular, is quite popular with the Russian-speaking part of the community, so you can easily find information.
Suddenly for some reason, the entrance to your personal account does not work, bitcoin converter as well as see reviews about the cryptonator from other clients. Is this method reliable?
One cannot say for sure, because, as in the case of trading platforms, the user is actually forced to entrust his funds to a third party.
This minus is compensated by the support of a large number of altcoins and low transaction fees.
Mobile Crypto Wallets
The ubiquity of smartphones has allowed us to offer a number of effective cryptocurrency storage solutions aimed at owners of such gadgets.
Among them there are both unique specialized services and mobile versions of popular online wallets, in particular, among the latter including the cryptonator mentioned above.
Often applications for iOS and Android boast a combination of a sufficient level of security with ease of use and an intuitive interface.
Along the way, the user may be offered a number of other useful options, for example, integration with popular exchangers, etc.
Another type of popular multi-currency cryptocurrency wallet is provided by browser extensions.
Instead of going to cryptonator.com or another online service of this kind, the digital asset holder can work with them directly in a web browser, after installing the appropriate add-ons.
So, the Jaxx extension has become quite popular, which, with flexible configuration options, boasts a minimalistic interface, support for a large number of altcoins and the convenience of storing a private key and seed phrase.
The developers did not bypass the attention of users who choose a local way of storing tokens, preferring them to be on a personal computer.
Desktop solutions of crypto-wallets are a universal and practical option, which has a good level of reliability.
Their functionality can vary quite a lot, in particular, this applies to the list of supported assets and the presence of additional options like built-in coin exchangers.
What is the most reliable way to store tokens?
The answer is simple – hardware wallets that allow you to keep coins offline, that is, without access to the network.
Yes, as a result, transactions are much more complicated, but if frequent transfers of funds are not required, then the “cold” storage option can be safely called optimal.
At the same time, it does not lose its relevance – such devices were in demand both in 2020 and now.
Among the gadgets that are traditionally recorded in the top hardware wallets, we can distinguish models from Ledger, Trezor and KeepKey.