Cryptocurrency is one of the ways to save funds during unstable times in the financial market. Moreover, it is an alternative way to carry out various transactions and receive payments from any point in the world, regardless of sanctions and various restrictions. After all, cryptocurrency is not controlled by banks, the state, or specific companies. Let’s figure out the types of crypto wallets, how to create a crypto wallet, and carry out various operations with its help.
What is a Crypto Wallet and Why is it Needed?
A crypto wallet is a service or special program that allows you to store, exchange, trade, and perform various operations with cryptocurrency. To create a crypto wallet, you need to register on a platform/site/cryptocurrency exchange or another resource. You will be issued a cryptographic code in the form of public and private keys that ensure the security of funds.
It functions according to the principle of an ordinary wallet, allowing you to store and spend digital coins and tokens. However, it is essential to understand that it contains data about the keys, and the cryptocurrency itself is stored in the blockchain.
Types of Crypto Wallets
A cryptocurrency wallet can be of different types depending on the level of security, the number of available cryptocurrencies, the interface, etc. Let’s consider several categories of crypto wallets.
Format, or Principle of Operation
Cold Wallet These are special devices that connect to a computer, laptop, etc.
Hot Wallet
These are mobile, desktop, and web applications that are installed on a device.
Encryption
This refers to the storage and management of public and private keys of the crypto wallet.
Custodial Wallet
Such a wallet is issued by a cryptocurrency exchange, a fund, or another intermediary that stores the user’s keys on its server.
Non-custodial
Wallet In this wallet, the user fully controls the private keys, which are not transferred to third parties. In case of loss of keys, access to funds can be restored using a special phrase recorded during registration.
Type of Device
You can use wallets on different devices, so there are several options for services.
Hardware Wallet
A special device stores your keys to the wallet. Outwardly, it resembles a flash drive and connects to a PC.
Desktop Wallet
The crypto wallet in the form of an application is installed on a computer. All data about crypto savings and private keys are stored in the PC’s memory.
Mobile Wallet
This is an application for a smartphone or tablet. Private keys are stored in encrypted form on the gadget, and information about transactions is on third-party resources.
Online Wallet
The service functions through a browser, and you can log into it from any gadget: smartphone, tablet, or PC.
Paper Wallet
In this case, the private key to the wallet is written on a sheet of paper in the form of a QR code. Access is opened through special sites; information about the keys is on physical media.
Main Characteristics of a Good Wallet
A crypto wallet where it will be safe and convenient to store your digital savings should have certain characteristics.
Platform Availability. It is desirable that the wallet is compatible with the OS of both smartphones and PCs or has at least browser extensions.
User-friendly Interface. This is not a triviality because if the user does not understand how to transfer or buy cryptocurrency, they will not spend time figuring it out but will look for a more understandable analog.
Security and Confidentiality of Data. The service should have these items described in detail, all processes should be described so that the user understands on which blockchain the service is based, how the security of funds is ensured during transfers, etc.
Customer Support. Support for users who can help with any question as quickly as possible through different channels: e-mail, messenger, through Discord.
Token Visibility. It is essential that all tokens presented in the wallet are recognizable. This is important both when exchanging and from a security point of view.
Wallet Reputation. The creators of the project will gladly write that their product is the best of all. However, it is essential to read user reviews and study what is written about the service on the Internet.
There is also another parameter — compatibility with the blockchain. This can be a fundamental moment for those who work with a specific cryptocurrency, for example, Bitcoin or Ethereum.
Popular Crypto Wallets
There are three popular services that have earned a reputation as reliable platforms to create a crypto wallet. Most often, these are hot wallets.
Exodus
The crypto wallet allows you to store, buy, and sell cryptocurrency on different devices: smartphones, tablets, PCs. It supports more than 300 cryptocurrencies, as well as NFT and various crypto assets. Exodus is compatible with different operating systems on gadgets: on smartphones — iOS and Android, on PCs — Windows, MacOS, and Linux. There are also extensions for the Chrome browser.
Trust Wallet
The crypto wallet works with various digital assets: from cryptocurrency to NFT. Since it belongs to the Binance cryptocurrency exchange, there is an option for simplified cryptocurrency transfers for exchange users. Trust Wallet is compatible with iOS, Android, and has an extension for the Chrome browser.
The service supports over a million tokens and is compatible with 50 blockchains. Also, the wallet has its own TWT token, which helps in the development of the ecosystem. By purchasing it, users can participate in decisions to improve the functions of the wallet and receive bonuses.
MetaMask
The crypto wallet operates on the Ethereum basis, so it is intended for storing, buying, and selling ERC-20 tokens. It interacts with BNB Smart Chain, Polygon, and HECO, thanks to which users can work on these platforms with DEX and DeFi services.
MetaMask allows you to store and exchange both cryptocurrency and NFT tokens. Moreover, the service is compatible with hardware wallets, Ledger, and Trezor. It works on smartphones with the iOS and Android operating systems and has an extension for browsers on PCs.
What Should a Crypto Wallet Necessarily Be Able to Do?
When creating a crypto wallet, pay attention to what functions the service has.
Standard Set:
Generation of a unique access key Setting a limit on the duration of the working session Support for multiple cryptocurrencies Buying and selling cryptocurrency Conducting transactions to other wallets Creating a QR code for transactions Setting up push notifications Monitoring and updating the exchange rate of currencies Compatibility with iOS and Android gadgets Additionally, the wallet may have such options:
Calculation of the commission depending on the amount in the deal Conversion of fiat into cryptocurrency Interaction with cryptocurrency exchanges, which simplifies cryptocurrency trading Access to staking
How to Open a Crypto Wallet in Russia?
If you are not planning to store large amounts in cryptocurrency, it is not worth opening a non-custodial or cold wallet. Since it is something like an electronic safe, you will have to work hard to open it.
It is easier to open a custodial or hot wallet. First, you need to choose a desktop or mobile version of the wallet, depending on what is more convenient for you. A custodial wallet can be opened on exchanges, in a browser, or through special applications. And then, the instructions for opening a wallet in most services/programs are approximately the same.
Go to the main page. Click on “Create a new crypto wallet.” Specify personal data, set a secret code, write down the private and public key, and set a password for the application. Go through verification if it is available on the platform/service. To start using the wallet, you need to replenish it. For example, through a transfer from another user. Or by buying cryptocurrency through an electronic payment system, an online exchanger, using a card, and P2P trading. It is essential to clarify before creating a wallet that the service works with users from Russia. Only in this case, it will be possible to create a crypto wallet with replenishment and withdrawal with the help of a bank card. Now, for example, such exchanges work with citizens of the Russian Federation: Bybit, KuCoin, Phemex, BingX, MEXC, and OKX. Also, you can change cryptocurrency into rubles and withdraw it to a card using the Wallet in Telegram.
You can create a crypto wallet on our platform with a high level of trust and a convenient interface. A multicurrency crypto wallet with more than 200 currencies from the company ECOS, which provides cloud mining services. The service has a wide range of functions that allow you not only to trade, buy, and exchange digital assets but also to work with NFT, engage in mining, and have access to ECOS portfolios. You can withdraw funds from the wallet to a card. Also, ECOS clients are waiting for regular rewards and bonuses for the active use of their platform.
