Cryptocurrency Wallets: Which One Should You Use?
March 26, 2024

Cryptocurrency Wallets: Which One Should You Use?

Crypto wallets are a crucial part of blockchain technology. How do they work? How can you choose which ones to use?

Blockchain technology came with many new features, opportunities, and definitions that most of the global population is still trying to wrap their heads around. When one understands how blockchain technology works and what its components can do, it becomes a lot easier to settle into the blockchain space. One can find immense potential in opportunities to assimilate personal or professional abundance by exploring all that this technology has to offer.

A big part of blockchain technology is security, which helps to protect value via an on-chain ledger. This value can be monetary value and informational value. While the blockchain's digital ledger protects information through decentralized control, cryptocurrency wallets protects crypto assets. Crypto assets come in the form of fungible digital coins or as non-fungible tokens (NFTs). These crypto assets hold monetary value and sometimes functional and informational value as well.

Thus, crypto wallets are a vital part of blockchains. They must provide high-security and should be simplified in design, so even the most inexperienced blockchain user can easily navigate their crypto wallet. There are many types of crypto wallets that are available to us. These wallets can be custodial, non-custodial, hot or cold wallets, and even multi-asset wallets. We will explore each of these wallets soon. The most important factor one needs to know about crypto wallets is how they work.

Crypto wallets are an essential part of the blockchain ecosystem

Much like everything else that exists and thrives in the blockchain realm, crypto wallets are cryptographic in nature. Hence, every crypto wallet comes with a public key and private key. The public key can be seen and shared by the user with others. By sharing one's public key, users can send and receive crypto assets to and from other crypto wallet holders. Meanwhile, the private key must be kept a secret. Only the owner of the wallet will have access to this secret key. It is imperative to keep the private key safe. If it is lost or forgotten, the crypto assets within the wallet will be lost forever.

Some crypto wallets give you complete control over your private key. These wallets are non-custodial wallets. They give the wallet owner complete control and ownership over their wallet and the assets within. In contrast, custodial wallets do not give holders control or ownership of their holder. For those who are not confident in keeping the private key safe, the latter is a better option. However, for those who are holding a large sum in their wallet, it would be safer to keep a non-custodial wallet, provided they are confident they can keep their private key safely.

Some crypto wallets are only supported by a single blockchain. This means that this type of wallet can only hold the tokens that exist within that blockchain. The opposite of this is a multi-chain wallet. This wallet supports a variety of blockchains which gives it the ability to hold a wide range of crypto assets.

Crypto wallets could be single-asset or multi-asset wallets

To specify, crypto wallets come in the form of software (hot) and hardware (cold) wallets. Cold wallets are paper wallets or hardware wallets. These wallets are non-custodial and are not connected to the Internet. Paper wallets aren't as popular as they used to be since the emergence of more secure hardware wallet options. In the case of hardware wallets, even if the hardware fails, the owner can buy a new device and access their assets by typing in the same private key.

Hot wallets are wallets that are constantly connected to the Internet. These can be desktop wallets, browser wallets, or mobile wallets (apps). Hot wallets that exist on crypto exchanges are all custodial wallets. The crypto exchange that gives you your wallet will keep you private key. As for hot wallets that are setup by you on your desktop, mobile, or browser, these can be non-custodial so you will be given full control over your assets. Most crypto wallets come with two-factor authentication as well as PIN or fingerprint access for added security.

Crypto wallets come as hardware (cold) wallets or software (hot) wallets

The Pop wallet is the native wallet on the Pop app. Every Pop user will get their very own Pop wallet upon creating an account on Pop. The Pop wallet will begin as a custodial wallet in phase one. Once phase two of the Pop app is launched, the Pop wallet will give users the option to be turned into a non-custodial wallet. Users can use the Pop wallet to store and increase their Pop asset collection. Later on, they can choose to buy, sell, trade, transfer, mint or stake on the Pop app and the Pop wallet will help facilitate these transactions.

The Pop app will also allow users to connect to the Pop app with the PhinX wallet. The PhinX wallet is a wallet partnered to Pop. It offers a wide range of features to its users. It is a multi-chain, non-custodial wallet and is built to maximize ease and efficiency. The wallet also offers a special Guardian feature that'll allow users to rely on trusted PhinX users to assist them in an event where their private key may be lost. The PhinX wallet will make its debut soon and is eager to work with Pop.

The Pop app comes with the Pop wallet, later you can connect with PhinX

You can be one of the first to experience the Pop experience and check out the Pop wallet today! Pop's exclusive closed alpha testing round has been extended. Eager alpha testers can begin testing the Pop app and its features before the rest of the world. You can also drop a detailed response as quality feedback. High-quality feedback will receive USDT rewards. Check out Pop's community and social channels to get started now!