An overview of crypto wallets - 1

Just decided to research on crypto wallets, it was worth my time, I learnt alot . Scatter ideas please bear with me. It's not my field. Lol!

1.1 what is crypto wallet?
They are applications in which cryptocurrency holders can send, recieve and store cryptocurrencies such as Bitcoin, ethereum etc.
This type of application is used in storing digital currency we can't feel or touch. It serves as a link that you can use to interact with a blockchain network.

1.2 Types of crypto wallets.

Crypto wallets varies in form ranging from downloaded softwares to physical devices.
The wallets are divided into three types:
♠️ Software wallet: they are wallet which comes in form of applications which are downloaded into mobile phones or desktop. These type of wallet uses the internet and as such requires maximum cybersecurity to prevent online theft. They are used for convenience storage. It is recommended you store a limited amount of cryptocurrency while using a software wallet.

♠️ Hardware wallet: These are physical devices invented for storage of cryptocurrencies. They come in form of a USB with OLED screen having side buttons. They are used mainly for long-term storage.
Since they are not connected to the internet, they are invulnerable to online hacking and so are said to offer best security services. Useful in storage of large amount of cryptocurrency.Its complexity makes it difficult for beginners to use during large investment.

♠️ Paper wallets: they consist of a piece of paper on which crypto address and its private key are visibly printed on it in the form of QR codes. During transaction purposes, the codes are scanned to reveal the address. They can't be hacked as they are operated in offline mode.

Depending on their working principles, they may further be classified into two :
♠️ Hot wallets: They are digital cryptocurrency currency wallets connected to the internet and are available online. E.g of hot wallets include Binance. They are mostly free or with little charges.


♠️ Cold wallets: this type of wallet are not connected to the internet rather uses physical method to store the keys offline, this action protects it from online hacks.
It is suitable for long term storage.
E.g include; trezor.

1.3 List of 5 Great Crypto Wallets

Before choosing a wallet to use for transactions ( send, recieve and store) , you are expected to analyse the pros and cons of the wallet. factors such as security, costs, and customer reviews. Security is obviously a big factor to consider, so it is important to use a wallet that is well known and has plenty of safety guidelines in place.
It is also important to choose a wallet that works properly with some of the larger exchanges, in order for you to complete transactions in the open market faster . 

Here are top 5 best cryptocurrency wallets for you to make the right choice:
1. Ledger Nano S wallet
♠️ Description

It is one of the most popular and reliable hardware wallet. It supports over 1,500 digital assets including the common ones like bitcoin, ethereum and more.
It provides maximum security as your private keys are kept within the device (offline).
♠️ Features
● They are made of stainless steel offering high resistance to physical damage.
● It takes the form of a USB drive.
● It has an OLED screen and two side buttons for confirmation of transactions.
● During configuration, it requires a pin code to secure your wallet.
● It uses 2-factor authentication steps,  ST31H320 for protection and STM32F042 for the operating system.
● Stores between 3-5 wallets.
● It has its own operating system called Bolos.
♠️ Pros
● It is the cheapest hardware wallet.
● It is compatible with most devices connecting with USB type B port.
● The device is portable.
♠️ Cons
● Limited internal memory.
● It has a small display and as such, not all the crypto address will be seen, such may result in sending cryptocurrency to a wrong address.

2. Trezor One

Description
It is the first cryptocurrency hard wallet. It is designed by Cryptocurrency advocates and a stellar cyber security team in Czech Republic. In Czech trezor literally means vault. It is highly secured.
♠️ Features
● It uses two-factor authentication.
● It has a password manager app.
● It is compatible with all Operating system types.
● It has a screen for display.
● It makes use of the internet during transactions. This is achieved when the device is connected to the computer via the USB.
♠️ Pros
● It make use of pass passphrase to boast the security of the wallet.
● It supports more than 1,200 cryptocurrencies.
♠️ Cons
● It doesn't support coins like Ripple and monero.

3. Keepkey Wallet

♠️Description
It is a hardware wallet that was launched in 2015. It is user friendly with a nice design.
♠️ Features
● It has a huge screen which allows you see the full cryptocurrency address unlike trezor and ledger nano wallets.
● For security it make use pin code and recovery seeds.
● It is very large in size.
● Pin codes are changed from time to time.
● It has no operating system, this makes it malware proof.
♠️ Pros
● It is highly secured as it does not have an operating system.
● Screen is large, so instances of sending cryptocurrency to wrong address is minimal.
● It is one of the cheapest hardware wallet.
♠️ Cons
● It does not support much cryptocurrencies ; just about 35 cryptocurrencies.
● It is less mobile due to the size.

4. Electrum Wallet

♠️ Description
It is a popular desktop hotware wallet which requires some mastery in usage. It is available to download for Windows, Mac OS and Linux OS for free.
♠️ Features
● It is extremely fast.
● It is open to any to contribute for further development.
● It has a simple payment verification method.
♠️ Pros
● No data is stored online thereby securing the privacy of its users.
● It has option to set custom fees for its users.
● It has greater level of security compared to other hot wallets.
♠️ Cons
● Only support bitcoin.
● Absence of customer support.
● Can be hacked.

5. Exodus Wallet

♠️ Description
It is a desktop and mobile hotware wallet with a beautiful and intuitive user interface.
♠️ Features
● the wallet uses graphs to explain the progress of your Bitcoin.
● It supports over 100 cryptocurrencies.
● the amazing feature is the ability to swap between a large number of cryptocurrencies.
♠️ Pros
● Supports huge variety of cryptocurrencies.
● It has good customer support.
● Exodus allows users to set custom fees, and automatically sets a fee that ensures the transaction completes faster.
♠️ Cons
● Prone to being hacked.

1.4 Precautions to take when using a cryptocurrency wallet?

Some safety measures you need to note while using cryptocurrency wallet include :
● Keep a small amount in your crypto wallet.
● Backup your wallet; this helps to protect against computer failures and many human mistakes like displacing it in cases of coldware devices.
● Ensure to encrypt any backup that has been exposed to the network.
● Use a strong password which contain letters, numbers, punctuation marks and must be at least 20 characters long.
● You must make sure you don't forget your password or you may lose your fund.

Thanks for reading, am just learning cryptocurrency.. I promise better articles ahead. I love you all.