Lesson 2, Topic 1
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How And Where Is It Better To Open A Cryptocurrency Wallet In 2021

digitalscotland September 8, 2021
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Cryptocurrencies are once again in the spotlight. In the past year, we’ve seen bitcoin and peers finally getting out of the bear market, more than quadrupling in value.

Moreover, since January, their popularity seems to have exploded and investors around the world have once again established cryptocurrencies as a sound investment opportunity.

However, whether you are trading cryptocurrencies to make a quick profit, investing in the long term, or storing your shiny NFTs, you will need a cryptocurrency wallet. Some of these wallets even allow you to buy bitcoin with a credit card, making them a convenient way to get started with cryptocurrencies.

We wrote this article to explain the importance of crypto wallets and give you the best options available on the market. Let’s begin.

Why do you need a cryptocurrency wallet?

Cryptocurrencies are digital representations of value. As such they don’t exist in any physical shape or form but reside as pieces of code on the blockchain.

To access and use cryptocurrency coins, we need to use software solutions called cryptocurrency wallets.

A cryptocurrency wallet uses two unique codes to handle the coins:

  • A private key – which acts as a “pin code” to your coins and allows you to spend them. Make sure you always keep this one secret. While cryptocurrency wallets are virtually unhackable, you are responsible for keeping your private key safe at all times.
  • A public address – the address you will share when you want to receive crypto coins. It’s the location of your coins on the blockchain and can be compared to your bank account number.

Types of crypto wallets

When you begin your search for the best crypto wallet available, you might become quickly overwhelmed by the myriad of choices available. This is because there are various types of crypto wallets, made to serve different purposes. Let’s have a look at the different types of wallets:

  • Mobile wallets – mobile apps that help you access your crypto on your phone. Ideal for daily transactions and small amounts of crypto.
  • Desktop wallets – the desktop counterparts of mobile wallets, transform your PC into a crypto vault. More secure than mobile wallets, they can be used to store larger amounts of crypto.
  • Hardware wallets – devices that are specially designed to store cryptocurrencies. While they aren’t free like the aforementioned types of crypto wallets, they provide the least compromise regarding security paired with great day-to-day usability.

So with that out of the way, you must be wondering which type of wallet you should choose. Well, the answer to this question really depends on your personal preference.

For instance, if you use your crypto daily, we would recommend installing a mobile wallet. On the other hand, if you invest large amounts of money into bitcoin, safety becomes increasingly important. In that case, you should purchase a hardware wallet.

In either case, make sure that when opening a crypto wallet you are using a secure connexion to ensure the safety of your funds. With that said, we can finally dig into our list of the best crypto wallets.

Best mobile and desktop wallet – Atomic Wallet

Atomic Wallet comes in both a mobile and desktop version, allowing you to link your wallet across two of your preferred devices. We especially like the simple and beginner-friendly interface where even neophytes will feel right at home.

Furthermore, Atomic allows you to buy crypto with your credit card and has an interactive btc price chart to show you the latest price movements.

Finally, it can hold more than 100 different cryptocurrencies, so you won’t have to download a different wallet for each and every crypto you want to invest in.

Best NFT wallet – Enjin wallet

With the digital art craze hitting the markets, it would be unwise to omit the best NFT wallet out there – Enjin wallet.

In addition to allowing the storage of the most popular cryptos and all ethereum-based tokens, this mobile wallet stores NFTs created on the ERC-20 and ERC-1155 protocols.

This way you can store your digital collectibles and bitcoin thorough a single, secure app.

Best hardware wallet – Ledger Nano S

The Ledger Nano S is hands down the most popular hardware wallet on the market and for a good reason. It’s affordable and offers no compromises on security.

Furthermore, it provides a clear web interface to manage, buy and sell the 100+ coins it supports. If you plan on becoming a serious crypto investor and can spare the money get this wallet.

Closing thoughts

When choosing your cryptocurrency wallet, you need to make sure you aren’t making any compromises. Picking a wallet from our list will provide a decent level of security paired with some great convenience. When starting out, a free wallet such as Atomic or Enjin will do just fine.

However, when your investments increase considerably, make sure you are using hardware wallets as they are the most secure options available.