Have you heard the news that banks are getting in on the mix in the cryptocurrency space? Would you store your crypto in a bank? Does this defeat the purpose?
Depending on your stance, it’s no denying that crypto is here to stay. With so much popularity in the space, you want to follow the best practices. This includes how to store your crypto.
What is the best multi-cryptocurrency wallet for storage? What do you need to pay attention to when deciding? Read our guide below to find out.
1. Hot or Not
A cryptocurrency wallet will fall under a hot or cold wallet. A hot wallet connects to the internet. You will download one of these wallets on your smartphone or computer.
There is no denying the convenience and ease of use with such wallets.
A cold wallet is a hardware wallet that never connects to the internet. Remember to store your private keys safely too.
Before you start storing your crypto on a crypto wallet, you need to see if the company can be trusted. You want to do your own research and ask around. Are other people using this and have they been around for a while?
You want a reputable platform with transparent information. If something feels fishy, it’s best to move on and find something you can trust. To do so, check to see if the data is saved, who is behind the team, and what their practices are in data management.
3. Who’s the Custodian?
Have you come across the terms custodial and non-custodial? Your crypto wallet will be one or the other.
A custodial wallet is controlled by a third party. This means that they hold the private keys. They are similar to banks in this fashion.
A cryptocurrency exchange is technically an example of a custodial wallet.
A non-custodial wallet is where you hold the private keys. This comes with greater responsibility and is recommended for seasoned veterans in the crypto space.
4. Crypto Support
When searching for the best multi-cryptocurrency wallet on the market, you want to see just how many cryptocurrencies it supports, right? Are there certain cryptocurrencies you’re looking for in particular?
With thousands of cryptocurrencies out there, you’ll want to choose a crypto wallet right for you and your needs. Many wallets these days will support ERC-20 tokens, dApps, NFTs, and stablecoins.
When searching for the best multi-cryptocurrency wallet, you’ll want to be mindful of the security features. Things like biometrics, 2FA, password protection, and multi-sig are all things to pay attention to.
Is there a proper backup mechanism? If something were to go wrong with the device, you want to ensure you can quickly access your funds again.
What’s the Best Multi-Cryptocurrency Wallet?
What’s the best multi-cryptocurrency wallet? That will depend on your wants and needs.
Go over our guide to choose carefully. Always follow proper precautions when dealing with crypto. Don’t do anything you’re not comfortable with.
For more insight into the world of crypto and finance, make sure you keep up with our blog.