You need a crypto wallet if you want to store your crypto safely – in fact you might need more than one wallet if you plan on investing in more than one type of Crypto.
Sure when you buy crypto on a major exchange – including Bybit, Changelly, Mexc or Nexo (free $25 in Bitcoin when you use this link – see conditions) – the exchange can store the investment for you but this is not recommended. To properly secure your cryptos, you need to transfer them to a wallet that only you control.
Your wallet is like a bank account but you are both the account holder and the bank.
Two types of wallet
1. Software wallets – also known as ‘hot wallets’
2. Hardware wallets – also known as ‘cold wallets’.
Software wallets are often called ‘hot’ wallets because funds are stored online. Hardware wallets keep private keys offline in ‘cold’ storage.
Most people start with a software wallet, which is normally free and is very convenient but it is not as secure as a Hardware wallet.
Software wallets
Software or ‘hot wallets’ can either be used on your web browser or by using apps installed on your phone/laptop.
Being connected to the internet makes ‘hot wallets’ less secure but most people find them convenient and easy to use.
Never save your password on your phone or other device. If you must, write it down (keep it secure) and use two-factor authentication (PIN sent to your via text message), whenever possible.
Also remember to backup your device. If your device fails, you could lose the private keys to your wallet, resulting in permanent loss of your investments.
We recommend Exodus – free and works with many exchanges and cryptos
Hardware (‘cold’) wallets
A hardware wallet is a physical device that can store crypto offline. Usually, you have to plug it into your device, which makes it far more secure than an online Software wallet.
Cold wallets generally cost US$100-300 and you either need to collect them or have one shipped to you.
Buying a ‘cold wallet’ is a smart move if you are worried about security or if you are making large investments.
We recommend the following two brands
- D’cent including a one or two back of their Biometric cold wallets (best for Spanish speaking Latin America)
- Trezor – these can be integrated with Exodus (see above)
We no longer recommend Ledger – some news and internet reports suggest that they might have provided access to their crypto wallets to a government organisation. Please check or verify this for yourself.
Conclusion
Do not leave your crypto on an exchange. It is safer and smarter to transfer it to a software or a hardware wallet as soon as possible.
In general, software wallets are more convenient while hardware wallets are more secure.
Visit Exodus to get a free software wallet or go to D’cent or Trezor to buy a hardware wallet – using our links will get you the best price.
More recommendations coming soon!
