You might have a bank account for keeping your money safe. Of course, if you don’t trust banks there is always the option to keep your cash under a mattress. Unfortunately, in the crypto world neither of these actions will work…

We use WALLETS to send, receive, store, and monitor the activity of digital assets. Unlike a Prada purse made of leather, a crypto wallet represents a software program that holds your private and public keys. These keys will give you access to your crypto address. You send this address to other people for them to be able to send you coins.

Wallets are essential for crypto activities. Don’t confuse them with exchanges. Exchanges like Gate.io, Coinbase, Coinbene etc. are primarily created for trading. The scenario is that you buy coins from exchanges and keep them safe by putting your digital assets into secure crypto wallets.

There are 3 types of wallets, which provide different ways to store and access your digital currency: software, hardware, and paper.

Software wallets can be desktop, mobile, or online.

Desktop wallets only work on personal computers or laptops. We would pay your attention to Jaxx, Electrum, and Bitcoin Armory.

Pros: They are connected to the Internet and are easy to download.

Cons: You can access them only on the computer, in which they are installed.

Online wallet like a Freewallet is run by a cloud and are accessible to any computing device in any location.

Pros: They are more convenient to access and they store your private kays online.

Cons: You have to trust the host’s security measures, thus, your password might be able to be hacked easier.

Mobile wallets like LUMI, Wirex, and MYCelium can be downloaded from the App store or the Google store.

Pros: They can be used anywhere including retail stores. They also have a much easier to use interface.

Cons: Still not as secure as a hardware wallet

Hardware wallets work as small devices that occasionally require a connection to the web to conduct transactions. The examples are Trezor, Ledger Nano, and KeepKey.

Pros: Good for long term use. Hardware wallets store your private keys offline, away from hackers

Cons: Without a PC or a laptop you will not be able to access your assets.

Paper wallets represent a printed document containing a public address and a private key. The public address is used to receive cryptocurrency. The private key allows you to spend or transfer digital assets stored at that address. Good paper wallet generators are Bitaddress.org and Walletgenerator.net.

Pros: As the keys are not stored digitally they become immune to hacker attacks, malware, and any other digital thefts.

Cons: it is slower to use when you want to spend bitcoins.

There is nothing that is completely perfect. A cocktail dress is a good solution for a night party but a bad idea for an office attire. You should diversify all of your crypto assets across different storage platforms suitable for your particular needs. Mobile wallets like LUMI and Jaxx work well over a daily basis with small purchases as they are easy and quick to use. On the other side, hardware wallets are considered to be good for a huge sum of money storage because of a higher security level.

IMPORTANT: if you forget or misplace your recovery seed key and/or a PIN code, then you can’t access your coins. That is why you must memorize your PIN code.

AssetRush always recommends following basic security rules:

Backup your wallet with a seed phrase! A mnemonic phrase, which is a string of common words you can memorize, will strengthen your security. Keep your software updated so that you can have the latest security enhancements available. Keeping your software up to date not only applies to your wallet, but also software on your computer or mobile. Add extra security like 2 factor verification, available in many wallets.

If you have any questions about how to choose wallets, we are always happy to help and answer them!