Crypto Wallet: Why You Must Buy One!

Crypto Wallet: Why You Must Buy One!

What is a Crypto Wallet?

In order to store cash safely, you’d deposit it in a bank. It’s pretty much the same for Bitcoin; in order to keep your bitcoins safe, you need a crypto wallet. You can either choose a third-party online coin wallet or a hardware wallet, which are both great options. But why do you even need a wallet in the first place? Well, that’s because a Bitcoin has a private key. When you open a Gmail account, you receive an email address and a password. Similarly, in Bitcoin, you receive a Bitcoin address which everybody can see and send money to. You also receive the password, a private key. A Crypto Wallet simply stores this information safely for you.

Technically, if you were to memorize your Bitcoin address and Private Key, your brain would be a crypto wallet.

Why do you need a Crypto Wallet?

The whole idea behind a hardware crypto wallet is that your Bitcoin information is not stored in a system with an internet connection. If there’s an internet connection, people might be able to hack into the system and get your private key. Now, if someone gets access to your private key, the person can pretty much say that it’s theirs and you can lose your investment. Think of it as a secure wallet that makes sure no hacker can get access to your bitcoin.  

However, a hardware crypto wallet can’t be broken into, unless someone steals it from you. You need a crypto wallet because it’s much safer. The secure element in a hardware wallet protects your information by encrypting them using cryptography. Cryptography is essentially like creating a puzzle and then saving the information so that even if people gain access, they cannot read what is within. Now, don’t believe that hardware crypto wallets are the only ones that protect your bitcoins.

Usually, you can get away with using an online wallet albeit it not being as safe as a hardware crypto wallet. However, if you’re ready to invest large sums into cryptocurrency, we suggest you get one immediately.

What is the best Crypto Wallet?

Ledger is one of the pioneers of the hardware crypto wallet market. Currently, it’s one of the best companies providing a hardware wallet. Ledger’s “Ledger Blue” is the iPhone of hardware wallets. It’s one of the most versatile and easy to use hardware crypto wallets available today and for good reason. The Ledger Blue is almost as big as a smartphone and has a large touchscreen which is very practical. On a full charge, the device will last you a full day’s usage.  So you can definitely carry out a few transactions throughout your day without facing many issues. Check out our guide for how to buy Bitcoin in a few simple easy steps!

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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