When you get into cryptocurrency investment, you may well ask yourself, “Do I need a crypto wallet?” Perhaps, you have previously heard of wallets but you may not understand what they actually are or know if you will need one.
“Do you need a cryptocurrency wallet?” Well, the truth is that it depends on you and your personal situation, but most likely you will need one. However, to help you understand if you do, in fact, need a wallet, we will look at the following questions:
- What is a cryptocurrency wallet?
- How do you get a crypto wallet?
- Why do you need a crypto wallet?
This article looks into the above question to help you grasp as much as possible about a crypto wallet.
What is a cryptocurrency wallet?
Like a conventional wallet for cash, a crypto wallet is a place where you can store your money (in the form of cryptocurrencies). However, you need to understand that storage of the coins is done through what are known as public and private keys and are needed to access the digital assets. Typically, when transacting in crypto, you need both your public key (your wallet address) and your private key (the account password).
While the public key is synonymous with the bank account number that you can share with people who may need to transfer funds to you, the private key is similar to the password of the account that you keep to yourself and do not share with anyone.
Since cryptos are purely digital assets, you do not hold physical coins or tokens in your wallet, but your store information in the wallet about your private and public keys and these are the ownership stake of your digital assets.
There are several types of crypto wallets, but they can be broadly classified as hot wallets, which are connected to the internet and easily accessible, and cold wallets which are offline storage.
How do you get a crypto wallet?
Once you buy your cryptocurrencies, you have two options about the storage—you can leave them in the same place you bought them, (the exchange), or you could get them transferred to your own wallet where you can hold them.
If you are investing in crypto and if you are wondering how to get a crypto wallet, we are here to answer that. To get a hot crypto wallet, you need to create it by downloading an app to your device from some of the exchanges or opening an account with the various providers, then creating a wallet. However, for cold storage, you have the software installed on a piece of hardware such as a portable hard drive.
It is vital to choose your wallet provider carefully so work with a secure and reliable platform like YouHodler. Also, check the ease of use and chances of earning interest when you have your coins in your wallet. Fortunately, YouHodler’s multi-coin wallet allows you to earn interest when you integrate it with interest-earning accounts. Therefore, choose YouHodler’s wallet because it has lots of benefits.
Why do you need a crypto wallet?
So, do you need a crypto wallet? The truth is that you may need or you may not need one depending on your needs and what you want to do with your coins. Leaving the cryptos in the custody of the exchanges is a safer option as long as you adequately protect your passwords and undertake various authentication measures to safeguard any unauthorized access to your assets.
Importantly, getting a crypto wallet gives you full control over your digital assets. You can move your coins around the blockchain networks and have a chance to view your account information. Also, you can transact easily if you have a mobile wallet app on your smartphone or tablet. If you only need to store your digital assets, cold storage like hardware wallets on your desktop is the best option to reduce possible losses.
Conclusion
You are now better informed about what crypto wallets are and if you need one. Whether you need one depends on your needs and what you want to do with your crypto assets. Most importantly, ensure you observe security measures as you get and work with the wallets to avoid losing your assets to scammers.
