Cryptocurrency Wallet Guide
If you are someone from the Middle East and interested in the trade of cryptocurrencies, then the first thing what you really need to think about is where to store your digital currency even BEFORE you buy the currency. Read on to learn more about how and where to store securely your assets.
What is a Digital Wallet
Cryptocurrencies are stored safely on software known as digital wallet or simply wallet. Coins or tokens in these wallets can be sent or received to other wallets or cryptocurrency exchanges. These wallets have a key called as secret or private key. This private key is instrumental to conduct any transaction as it is used for signature. Therefore, no one should be able to know the private key of your wallet.
Each wallet also has an address called public key. Other cryptocurrency users can send cryptocurrencies to your wallet through a public key address.
Types of Wallets
There are five basic types of wallets.
Web wallets are connected to internet. They store the coins on a cloud. They are a good option because of the convenience that they offer. You can access them from anywhere with internet. However, their connection to internet also makes them susceptible to security threats. Therefore, these wallets are often protected with several encryptions and cryptographic algorithms.
Try out Wirex web wallet. It’s free, secure, easy to use and multi-purpose.
Cryptocurrencies can also be stored physically on hardware wallets which are generally USB drives. There are several hardware wallets in Middle Eastern stores. They can be connected to the internet when needed in order to send or receive a cryptocurrency.
However, most of the times they are offline which is their biggest advantage. Hardware wallet is expensive as opposed to online wallets but they offer more security too. A few bucks spent on these wallets may potentially save you millions.
Best hardware wallet right now is the Ledger Nano:
Paper Wallets are considered by many as the safest cryptocurrency wallets. As the name suggests, with paper wallets you can print and save your public and private keys on a piece of paper and store them at a safe place. Since they are accessible offline, paper wallets are not susceptible to hacking threats.
Desktop wallets are softwares that can be downloaded from the internet and installed on your Personal Computers (PCs) to store digital assets. Many popular Cryptocurrencies like Stellar, NEM and Lisk have their official desktop wallets on their website.
These wallets are generally considered reliable. They are more secure than web wallets. However, there is still the possibility of your PC being affected by any malware or virus. Therefore, it is recommended to save cryptocurrencies on desktop wallets on computers with no access to the internet.
How convenient will it be to have your cryptocurrencies always in your pocket? Mobile wallets are basically mobile apps that store your cryptocurrencies. They can be helpful as you can use your cryptocurrency as a mode of payment to any store or restaurant that accepts cryptocurrencies. However, mobile wallets can also be prone to attack from malwares.
If you are a cryptocurrency trader in the Middle East and confused about which wallet to use, then we would recommend you to think about your purpose of storage. If you plan to sell your cryptocurrencies in a few weeks then web wallets and desktop wallets are a good option. If you plan to use them as a payment, then mobile wallet is the best option. However, if you plan to save them for a long time, then think about hardware or paper wallets.