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Varieties of cryptocurrency wallets

Since ancient times, wallets have been used by people to store and transport monetary units. They have always been different and in the typical sense (in the form of bills and coins), appeared somewhat later. Various objects were first used as these, and natural exchange was more practiced. At one time, the emergence of the institution of minting coins was a very progressive phenomenon, and after that, paper notes became widespread, the hegemony of which continued until modern times.

However, just 7 years ago, banknotes had a dangerous and powerful competitor in the form of alternative monetary units that could revolutionize the modern financial world. Virtual coins, which do not have a physical embodiment, change standards and typical stereotypes, and are a guarantee of the financial freedom of humanity in the future.

With the advent of digital currency, a completely natural question arose about a convenient place to store them. Traditional wallets are categorically not suitable for this purpose, because electronic currency does not look like coins or paper notes, it was "born", "lives" and "flourishes" in the vastness of the online world.

Given the virtual nature of digital money, it is not surprising that an online storage was created to save it - a cryptocurrency wallet. This is a special program that makes it possible to store electronic monetary units and use them as needed. In many respects, a digital wallet is very similar to a bank account, however, it is a much flexible and universal tool, and unlike its “respected colleague”, it does not obey the standards imposed by financial and credit institutions.

What are the features of virtual cash vaults?


An analysis of the positive and negative aspects of a digital wallet best gives an idea of all its features. Owners of electronic devices enjoy the following benefits:

The ability to purchase necessary goods and services from a distance. At the same time, to make a purchase, the user does not need to leave the office or home.
An online cryptocurrency wallet is much safer and more reliable than a regular wallet. Even in the event of its hacking and subsequent theft of funds, the Internet resource on which the wallet is stored, as a rule, compensates customers for financial losses. But if the money was stolen as a result of the negligence of the owner of the wallet, then he is independently responsible for the negative consequences of the hack.
Using a virtual wallet is completely free. Whereas for servicing a bank card or current account, customers are forced to pay a certain monthly fee.
The operation of the electronic wallet is not limited in time, does not have geographic targeting. The user only needs to create a wallet once and he can use it without the need for regular re-registration. By the way, all banking products must be reissued at regular intervals.
Simplicity of the registration process. To get a wallet, there is no need to fill out numerous forms and present documents, as is the practice in the banking sector. So, the well-known online cryptocurrency wallet Kryptonator, like many others like it, is created in just a few minutes, and the user does not need to provide any documents. In contrast to them, modern payment systems, for example, WebMoney, require the user to present a scanned passport and go through a full identification cycle.
Free choice of currency. Many types of electronic wallets can be found on the global web. Most of them are universal, that is, they are designed to store different types of virtual coins. However, the conversions carried out between different EPS, and even the exchange of various title units within each system, cost the owner of the vault a tidy sum. Quite often, digital storage, in contrast to EPS wallets, is optimized to accumulate only one kind of virtual money. So, the Ethereum cryptocurrency wallet supports work with only one type of virtual currency. But even in this case, the accumulated funds can be easily converted into another currency and is much more profitable than in the case of systems that work with fiduciary monetary units.
To be fair, it should be noted that digital wallets have some drawbacks. The main disadvantage is the relatively small number of outlets where the client can pay with virtual coins. It goes without saying that their number is constantly increasing. But still, this is clearly not enough for the multi-million army of Bitcoin adherents. In addition, even a universal cryptocurrency wallet is useless if there is no internet connection. Having a connection with the global web is a prerequisite for the performance of any digital device.

To gain access to the virtual wallet, a password is used, as well as special certificates that ensure the safety of the funds stored on it. But if the owner of the wallet loses this data, he will automatically lose access to his savings. Restoring access is a rather complicated process. Moreover, in some cases, this procedure is not provided at all and the money remains blocked forever. A multicurrency wallet for cryptocurrency makes it easy and simple to make any purchases. Sometimes this ease leads to the fact that people cease to sensibly assess their financial capabilities, which ultimately leads them to the path of bankruptcy.

Conditions for secure wallet registration


Thanks to the application of simple rules, the process of registering a digital wallet will be very simple, and the funds accumulated on it will be completely safe. First, you need to designate a valid postal address in the global network to which the system will send notifications to the user. It is also recommended to set a complex password of at least ten characters on the Litecoin wallet and other types of virtual storages. During registration, it is desirable to indicate correct user data, which will open access to additional wallet features. In addition, if access to the virtual storage is lost, the system will be able to restore it based on the owners request, if personal data were identified during the registration process.

Some password recovery services require the introduction of a secret phrase, which was voiced when registering a cryptocurrency wallet. Experienced users do not recommend memorizing these words. It is much safer to print them and keep them away from the password. It is better not to store any other identifiers, which include passwords and logins, in electronic format, but also print and place in a place inaccessible to strangers.

The most reliable services from a security point of view are resources where the user must pass two-step verification. In this case, first he needs to specify a username and password. And at the second stage, he must accept an incoming call from the system operator or enter a one-time code sent via SMS. As practice confirms, such an online cryptocurrency wallet is reliably protected from unlawful encroachments. And even if it lacks certain functions, or does not support operations with some types of virtual coins, the user can always additionally create another wallet.

Varieties of digital wallets


There are many different online wallets. Their classification is carried out according to different principles. Depending on the type of installation, a distinction is made between wallets registered on a home PC, a special service or a mobile device. The multi-wallet for cryptocurrency supports working with several types of virtual currency. But more often a digital wallet is only designed to hold one type of coin. The classic way of remembering keys involves storing them in a special service storage. Whereas the hybrid option means separate storage and use of multisignature.

It should be noted that almost every wallet supports work with the first and most famous digital currency Bitcoin. But there are also wallets that are adapted to store other types of currency. A striking example of such a virtual storage is the online cryptocurrency wallet Kryptonator, which supports work with Litecoins, which have rightfully won the title of virtual silver. Whereas Bitcoins have long been associated with gold.

Cryptonator is considered to be a very reliable service through which customers can manage their assets, accumulate virtual coins, and convert them into other types of currencies. Access to the wallet can be obtained at any time of the day and from anywhere in the world, but a prerequisite is the presence of a connection with the global web. The wallet functionality makes it easy and quick to make a transfer, send money or pay for a purchase. The online wallet for cryptocurrencies Kryptonator has proven itself well when the user is working on faucet sites. Balance replenishment is carried out using the Yandex.Money service. At the same time, the wallet owner does not have to worry about the safety of his savings, because his account is reliably protected thanks to the use of innovative security certificates.

At this stage, Ethereum wallets are very popular. Until this year, this cryptocurrency was not particularly in demand. But now the situation has changed dramatically, the cost of coins has increased more than twenty times and continues to increase. Therefore, many crypto-aggressors have switched to Ether, and for this they need a wallet for the Ethereum cryptocurrency. It can be created in several ways, but users recommend doing it through the www.myetherwallet.com service.

First you need to come up with a seven-character password. Moreover, it is desirable that it includes letters and numbers of different registers. The invented combination must be entered into the window and click on "generate". This completes the wallet creation process. But the user is advised to print the identifiers and hide them in a place inaccessible to strangers. To enter the repository, you need to use the "Send Transaction" tab and indicate the password in the window that opens. Next, you should open a wallet for Ethereum cryptocurrency and start accumulating virtual coins.

Classification of Bitcoin wallets


It shouldnt come as a surprise that multicurrency cryptocurrency wallets are gaining popularity. However, the division of storages by the number and variety of cryptocurrencies operated with their use is only a separate area of systematization. There are several types of modern virtual wallets designed to work with the first and most popular digital currency. They are classified according to the following criteria:

A desktop wallet, the first version of which was developed by Satoshi Nakamoto, in parallel with the creation of Bitcoin. The functionality of this virtual storage makes it possible to make money transfers with the participation of cryptocurrency, and also guarantees the safety of funds. The only drawback is that the wallet is loaded onto the wallet, at the very first time it is turned on, information about all transactions made in the Bitcoin system since its foundation. However, other variants of universal cryptocurrency wallets were created on the basis of Bitcoin Qt, the first Bitcoin storage. It was later rebranded and is now called Bitcoin Classic.
The above wallet is not the only one. Over time, many worthy alternatives have been developed, the enumeration of which is not the topic of our story. However, the story will not be complete without mentioning one of the most successful models, called Armory. It has an additional printing and offline storage function. It also boasts a very high level of security, so it is traditionally chosen by miners who store significant amounts of money on digital wallets. However, it should be noted that Armory, being a completely independent software, is just an add-on for Bitcoin Classic.

Desktop wallets, despite their huge information capacity and a fairly wide variety of functional capabilities, are the most secure options for storing crypto savings today.

Mobile wallets that you can create directly on your smartphone. This is very convenient as they can be used in the store to pay for purchases. Moreover, working with applications does not require entering all the data for making a payment. Thanks to this approach, the mobile version of the multicurrency wallet for cryptocurrency allows you to complete transactions in just a few clicks. The convenience of this option also lies in the fact that only an insignificant part of the blocks is loaded into the application. Then, as the main check is carried out on reliably protected nodes of the Bitcoin network. The most common versions of a mobile wallet are Blockchain and Haro. Moreover, in the first version of the wallet, encrypted keys are stored on the smartphone, and the server contains copies of the codes. Mobile versions have been developed for other types of digital coins as well. A lot of mobile wallets have been created for the Litecoin and Ether cryptocurrencies, which occupy leading positions in the top alternative currency units after Bitcoin.

Online wallets, the keys to which are stored on the server of a company specializing in the provision of services for storing crypto savings. Some services simultaneously serve both mobile and desktop wallets, which makes it possible for the owner to manage their savings from several devices at once. The main disadvantage of this option is the storage of money on an external resource. If attackers manage to bypass security systems, then the cryptocurrency wallet and the savings stored on it will fall into the hands of criminals. Moreover, not the least is the question of the reliability of such an online resource. It goes without saying that no one canceled the responsibility of the service, which is responsible for the safety of customers savings. But practice shows that a powerful hacker attack in most cases leads to the bankruptcy of a company. Despite the existing risk, online wallets are in high demand in the market, because compared to other models, they have the widest functionality. The most popular types of these online cryptocurrency wallets are Coinbase, Circle, and Haro.
Gadget wallets, which are specialized devices for storing keys. The functionality of these devices allows you to make money transfers and payments. Also, most of them are optimized to work like flash cards and look like them.
A paper version of a cryptocurrency wallet. Already from the name it becomes clear that we are talking about a written document that contains the keys. You can create a paper version of a multicurrency wallet for cryptocurrency at bitadress.org. To do this, the user needs to select wallet parameters on the appropriate tab and set the number of addresses. After completing the process, you should print the document. Balance replenishment is carried out using a public key. The main advantage of such a wallet is its security, because hackers cannot get to the keys. On the other hand, the loss of the paper version will make it impossible to restore access to savings.


How do I create a virtual wallet?


There are several ways to create a universal cryptocurrency wallet. It is most convenient to resort to the services of special services, while it is vital to choose resources with a reliable security system. Although, by and large, no one can give a 100% guarantee of protection against a hacker attack. Cooperation with a reputable service is good because even with a loss of funds, the administration will do everything possible to compensate for the losses to the client.

In addition, the virtual wallet can be registered on a PC. And if the cryptomager intends to work with only one type of coin, then he can use a special application to create a wallet. So, on the official website of the Litecoin cryptocurrency, you can download an application for registering a wallet. It is ideal for dealing with your chosen type of digital money. But at the same time, wallet synchronization is rather slow, since it downloads data about all transactions that took place on the network.

Therefore, thin or light wallets have become so popular. Their main advantage is the downloading of information by the system, which concerns only transactions made by the owner of the wallet. Whereas data on financial transfers of other network participants are not taken into account. This makes the lightweight version of the multi-currency cryptocurrency wallet quite a handy tool.

As for the mobile versions of online wallets, more and more users prefer this option. They are installed directly on a smartphone and make it possible to manage savings anywhere and anytime.