Keeping your financial assets safe and secure should be a priority. A great way to do so is to invest in a good digital wallet. Not only will it provide you a way to perform cashless transactions for your daily purchases, but most digital wallets also provide excellent security features to keep your assets safe from malware attacks. Learn more about what is the best digital wallet for cryptocurrency here.
What is a Digital Wallet?
To know what is the best digital wallet for cryptocurrency, you must first understand what a digital wallet is and how it works.
A digital wallet is sometimes referred to as an e-wallet. With the boom of technology came the innovation of storing different payment methods in a single wallet on your mobile device, tablet, or computer. Storing payment information such as credit cards in a digital wallet also allows the user to perform several transactions.
Transactions that can be done with digital wallets include paying for goods and services online, sending money to family or friends, receiving money or remittances from the same, and handling bank accounts. Nowadays, most banks have their own software that acts as both a digital wallet and an app to monitor all your funds and transactions.
Digital wallets were created in line with the trend of going cashless. Cashless payments have continued to be the preferred payment method.
Before digital wallets were developed, cashless payments in the form of credit and debit cards already existed. This method was considered to be more secure than bringing a huge amount of cash around in your physical wallet. In case you lose your credit cards, you can immediately call your bank to have them blocked. But if you lose your cash, there is little chance that you can still retrieve it.
Another advantage of a digital wallet is that it is not necessarily connected to a bank account. Although banks do provide a platform for all their account holders, individuals who do not have an account can still open a digital wallet. Platforms such as PayPal, Venmo, or Alipay can allow anyone to register an account with just an email address.
In this way, cashless payments through digital wallets have continued to thrive. You can either transfer funds to make a purchase or scan a QR code of the merchant to make it easier for you to pay for any goods or services acquired.
Digital wallets are also equipped with security features that make it difficult for potential hackers to access your funds. Aside from the security features that it can provide, a digital wallet is far more convenient to use while also keeping all your funds organized.
What is a Digital Crypto Wallet?
Now that you have an overview of what a digital wallet is, it is time to apply this information to cryptocurrencies.
First off, the actual cryptocurrencies cannot be stored in a digital wallet. What you are actually storing in a digital wallet is a unique address of your cryptocurrency asset. This address is what you need to input in the program or exchange to buy, sell, or trade your cryptocurrency asset.
But how is this protected? Just like digital wallets that contain your funds and credit card information, cryptocurrency wallets do the same for your crypto assets. The only difference is that it stores an address and not the actual cryptocurrency. Therefore, the security features of a digital crypto wallet are very similar to that of an e-wallet.
Some digital wallets that were made for cryptocurrencies carry security features like two-factor authentication and dual private key protection. Some software developers also make use of their own servers to store the secure information of the user. This way, in case you lose your passwords or the mobile device itself, you will be able to recover your digital crypto wallet.
Cryptocurrencies must be stored in a digital wallet or a hardware wallet, depending on your preference. Although hardware wallets are now highly recommended especially for traders with a lot of crypto assets, software wallets remain to be popular especially as these wallets now feature enhanced security.
Best Digital Wallets for Cryptocurrency
So, what is the best digital wallet for cryptocurrency? We have rounded up three of the best digital wallets that provide a top-notch user experience as well as excellent security features.
Take note that when choosing a digital wallet, this means that you are willing to pay for the top-notch security that it can provide. Although a lot of cryptocurrency exchanges have features similar to a crypto wallet, security is not the best on crypto exchanges and investing in a wallet is still the best choice.
The ZenGo wallet is one of the most highly rated digital wallets for cryptocurrency. It provides several security features including user-only authorized transactions. You get a lot of control over your crypto assets with this wallet.
Another amazing feature about the wallet is that you can create your account using just an email address and Face ID. Losing your mobile device will also not be a huge issue when trying to retrieve your crypto wallet because the ZenGo server stores another security key in case this happens.
The Exodus wallet is a good option for beginners. With a very user-friendly interface, this wallet will allow you to execute transactions and trades without much of a hassle. Furthermore, this wallet is not limited to only Bitcoin. It can carry several cryptocurrencies that can also be traded for other cryptos that are available in the wallet’s app.
Users also recommend this wallet because of the excellent customer support that they experience. The only issue so far with the Exodus wallet is that it runs on a closed-source code, meaning that users do not have access to how it works. Fully trusting the developers behind this Exodus wallet can be a bit daunting, but with all the good reviews, it seems like a good choice for a beginner.
This type of wallet is solely focused on Bitcoin. Unlike Exodus, the Electrum wallet has a more complicated user interface that can be confusing for beginners. However, due to being focused on Bitcoin only, using this wallet is seamless and transactions can be easily performed without a hitch.
What’s more, this wallet runs on an open-source code, which is good news for security-minded users. There is also a lot of user control for this wallet, making it one of the best choices for avid Bitcoin traders. Discover more about digital wallets here!
Discovering what is the best digital wallet for cryptocurrency is not just about finding the most expensive or highly recommended wallet. You must also consider the features that will work the best for you.
If you are just interested in trading Bitcoin, there are specific wallets that are focused on this cryptocurrency. But if you want a more diverse portfolio, finding a good digital wallet that carries several crypto assets should be your best bet. Whichever digital wallet you choose, make sure that you secure your password, PIN, and other security access codes to keep all your assets safe.