Crypto wallets bear a similar resemblance to online bank accounts to store your cryptocurrencies. Unlike online bank accounts, crypto wallets are not backed by Government deposit schemes. They also store nothing other than cryptocurrencies. You also have guaranteed control over your funds for longer periods of time.
Some crypto wallets are regarded as non-custodial. This is because they are distinct from the accounts you may hold on crypto exchange platforms. When you store crypto in exchange, the exchange company is bound to have control over your cryptocurrencies. But if you transfer them to your own crypto wallet, only you (the owner) will have access to your wealth.
What Is The Main Benefit Of A Crypto Wallet?
If you are not one who is managing a huge company that owns so much cryptocurrency that the involvement of a third party is absolutely crucial, a crypto wallet is made for you.
If you get hold of your very own crypto wallet, no one except you will have access to that wallet through the use of a private key.
By opting for this non-custodial crypto wallet, all your wealth will be backed up by private keys. This will do the job of a password for your digital wallet. This will guarantee 100% security from invasion by hackers. If you ever lose this private key, you can make use of a secret phase. There are a total of 12 to 24 words you need to enter, which will serve as a backup password. In order to protect your wallet from hackers, you must keep your private key and backup password safe at all times.
How To Set Up My Crypto Wallet?
The process of setting up your own wallet takes only a couple of minutes. In order to set it up, you can either download the app you are choosing or install the browser extension. Then, you will have to set up a secure password, enter the name of your wallet and then write down your secret phase (comprising 12 to 24 words). Boom! Your crypto wallet has now been set up!
What Are The Various Types Of Crypto Wallets?
1. Desktop Wallets
These wallets are installed and accessible only from a single computer to ensure safety. Your computer is most likely to get hacked or become a virus that will make you lose your funds. In order to prevent this, desktop wallets offer the highest levels of security.
2. Hardware Wallets
These wallets store the owner’s private keys on a hardware device. Though they facilitate virtual transactions, they store the crypto offline so as to offer better security. The owners must plug in their device to a computer with a stable internet connection, enter a pin, send the crypto and confirm.
3. Online Wallets
These are accessible from any computing device as they run on the cloud. They store your private keys virtually. These are also under the control of a third party, which exposes your wallets to risk.
The Bottom Line
After you use a crypto wallet, you might want to trade in certain cryptos. For this purpose, you can visit KuCoin. It is a crypto exchange platform that exposes you to diverse types of crypto trading styles and interactions with global investors. There are also no restrictions to adhere to on this exchange. So, sign up for it now to know more.
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