The market of cryptocurrency has observed a remarkable growth of more than 5 times in crypto wallets from the previous 3 years. A large number of entrepreneurs and businesses throughout the globe are entering into the world of crypto currency by raising their crypto wallets.
It is a must to have a crypto wallet either you are planning to start business or collecting crypto for future investments.
Therefore, with consideration of your goal, you must know how to select the right crypto wallet. Wallets are important part of having and investing in crypto currencies, in this industry without thinking about the type.
Choosing the right wallet is a burden, specifically for those who are new in this world of crypto currency.
Here in this article, we will guide you all about wallets- what are they, how they work and what things to consider while selecting one.
What are crypto wallets all about?
First, let us clear your misconception of regarding cryptocurrency wallets. Though the traditional and crypto wallets are the same, they actually don’t store your cryptocurrency.
You already know that the cryptocurrency is decentralized means that the storage in not in one single place, rather then it is documented in the transactions from and stored on the block chain.
The wallets are software programs that secure and store your private and public keys. However, in some cases this software is interlinked to hardware same like USB stick.
Actually no ‘real’ coins ever exchanged.
How do these key works?
A randomly generated private key is string of letters and numbers. It lets you to send crypto currency to someone else without the key, transactions can’t be approved. So it is difficult to keep it secure.
Losing the key means losing the coins.
The public key can be visible to everyone. It comes from the private key through a hash. It is a wallet address and others use it to send crypto-currency to your wallet.
Can you trust Cryptocurrency tools?
When choosing a cryptocurrency wallet, payment, or exchange processor, there are a number of factors to consider. Here are some key points, with some extra focus on wallets.
1. Reputation of a company
Think how experienced the company is, who is running it, how secured is your data on their servers.
If the private keys get insured who holds them or either or not they have a history of insider hacking and loss of crypto currency because of poor management practices of data or glitch software.
2. Integrated features
You must know the features that you want to add into your cryptowallet. The following major features that must be paid attention to while developing wallet are:
- Near Field Communication (NFC) support
- Automatic conversion rate
- User-friendly interface
- Biometric authentication
- Easy portfolio management
- Multi-currency support
- Customization of home screen
3. Backup features
There must be a backup mechanism to save your digital assets in any default. A proper mechanism will make sure safe and efficient custody of your digital currency. For this, mnemonic phrases are entered into the software system.
4. Security features
The past hacks in digital currency have led crypto traders or investors more concern about the safety of exchange wallets. So, security has become a main feature for any white label and customized wallet.
The features of security are:
- Biometric authentication
- Optimal session layout
- Multi-signature support
- Password-protected areas
- Two-factor authentication
