This is part two of a multiple part guide for people who are new to cryptocurrency. If you missed part one, you can read it here: https://steemit.com/cryptocurrency/@johngreenfield/cryptocurrency-beginner-s-guide-faucets-and-misc-part-one
So, by now you should have started getting cryptocoins from faucets and maybe a bit of pool mining too. But where to store them? Well, that’s where wallets come in. A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency. Most coins have an official wallet or a few officially recommended third party wallets. In order to use any cryptocurrency you will need to use a cryptocurrency wallet.
Picking the right wallet is important, as you need to make sure your funds are secure and easily accessible. There are a number of different types of wallets you can use including online, offline, mobile, hardware, desktop, and paper. Each “type” refers to what type of medium the wallet is stored on and whether or not the data is stored online or offline. Some wallets offer more than one method of accessing the wallet – for instance, Bitcoin Wallet is a desktop application and a mobile app.
Here is a quick rundown of the different types of wallets:
Desktop Wallet: The most common type of wallet. Typically an app that connects directly to a coin’s client.
Mobile Wallet: A wallet that is run from a smartphone app.
Online Wallet: An online wallet is literally a web-based wallet. You don’t download an app, but rather data is hosted on a real or virtual server. Some online wallets are hybrid wallets allowing encryption of private data before being sent to the online server.
Hardware Wallet: Dedicated hardware that is specifically built to hold cryptocurrency and keep it secure. This includes USB devices. These devices can go online to make transactions and get data and then can be taken offline for transportation and security.
Paper Wallet: You can actually print out a QR code for both a public and private key. This allows you to both spend and receive digital currency using a paper wallet. With this option, you can completely avoid storing digital data about your currency by using a paper wallet.
TIP: Watch out for browser extension malware if you are using online wallets, you may want to use a different browser for your online wallet than you do for your day-to-day internet browsing.
TIP: The term “hot wallet” describes a wallet connected to the internet. The term “cold wallet” describes a wallet not connected to the internet (for example a hardware wallet unplugged and in a safe.) When cryptocurrency is in “cold storage” that mean it is being held offline in a “cold wallet.” Funds you want to use like cash should be in hot wallets, funds you want to store long term are best held in “cold storage” in an offline wallet.
Here are a couple that I recommend:
Coinomi
Coinomi is a free, secure multi-coin HD wallet for Bitcoin and other cryptocoins. They have a great reputation among the cryptocurrency community, offer great security features and support just so many coins. Get the app for Android or iOS.
Signup Link: https://coinomi.com/
App: https://play.google.com/store/apps/details?id=com.coinomi.wallet
Wirex
Wirex is a cloud-based hybrid personal banking platform that offers bitcoin debit cards, remittances, and mobile banking. They’ve been around for a couple of years now, and I’ve been using their service since it started. It’s both a Bitcoin wallet, and cryptocurrency linked prepaid debit card. What this means is you can convert Bitcoin into fiat currencies (Pound Sterling, Dollar or Euro) and spend them using either a physical or virtual card. I highly recommend this service.
Signup Link: https://app.wirexapp.com/join/aYNhRagp20GYgNAPtMJbJQ
CryptoCompare
Now, let’s take a look at an example of a cryptocurrency portfolio. A portfolio is a way for you to view all your different holdings in one place, just like with a stock portfolio. Personally, I use CryptoCompare to keep track of my different accounts, wallets and other holdings. They’re also a great site for getting that latest news and keeping an eye on current prices. Just sign up, go to the Portfolio tab, enter the types and quantities of coins that you have, then sit back and watch your portfolio appreciate in value. They are working on an android app, which is currently in beta.
Signup Link: https://www.cryptocompare.com/
In the next part I’ll be taking a look at exchanges and other ways to purchase cryptocurrency.
If you know of any others I should take a look at, feel free to leave a comment!
I am in no way connected or affiliated with any of the mentioned products or services, these are all just genuine methods I’ve used to earn a little extra crypto (or not for the things labeled avoid!). Where it’s available, I’ve used my personal referral links so if you do sign up to any of these services, I’d really appreciate you using my link!
As always, never invest more than you can afford to lose. There are no guarantees when it comes to investments in general, but be extra cautious with cryptocurrencies. Peace and love