Cryptocurrency Wallets:Why do you need Wallets?

Cryptocurrency has taken the monetary world by storm with its decentralized and cryptographically protected features. Upon acquiring cryptocurrency, there are many ways to manage the digital currency - for holding and transferring funds. Using a cryptocurrency wallet makes managing crypto coins a seamless, efficient process. Here’s why you need wallets, and how a whitelabel cryptocurrency wallet can benefit you.

There are three types of wallets. Each of them have unique advantages over each other. Firstly, let’s have a look at the advantages that exchange wallets offer.

• Managing Keys - The data stored in a blockchain are often segmented to prevent a single key from accessing all of its data. In the process of fragmenting blocks, multiple private keys need to be generated. Too many keys can become a hassle to organize. Wallets provided by exchanges can store your private keys for you. Although convenient, its security protocols must properly be verified to ensure that your funds are in trustworthy hands.
• Supports Multiple Currencies - Wallets can hold multiple cryptocurrencies safely. It also seamlessly facilitates the transfer of funds of one denomination into another.
• Better Currency Portfolio - Tracking the influx and outflux of your cryptocurrency, especially when they exist in multiple types can be overwhelming. By connecting a cryptocurrency portfolio to your wallet, you can better monitor the performance of your cryptocurrency.
• Payments - With a cryptocurrency wallet you can transfer, withdraw and hold cryptocurrencies. Therefore, it offers a great payment feature.

Secondly, there is another type of wallet that can be used to manage cryptocurrency. That is, online wallets.

Bitcoin based wallets can be used on Blockchain.info. Ethereum based wallets can be accessed on MyEtherWallet.com. These online wallets provide high security and has multiple layers of verification protocols on the server.

Thirdly, there are cold wallets known as hardware wallets. These wallets are literally stored on hardware. This mode of managing cryptocurrency is acclaimed for possessing the highest level of security in storing crypto coins. Funds stored in hardware wallets are invulnerable to computer viruses as they are not connected to a network. Private keys are completely fortified from being intercepted by any third party. In order to perform transactions, they have to be verified and authorized in the hardware and not online.

Fourthly, there are paper wallets. These wallets are paper-based. They are absolute cold storage wallets that have cryptographically protected funds printed on paper. The only way they can be compromised is if it falls into the wrong hands.

Developing a cryptocurrency wallet can be time consuming and expensive. An alternate solution to circumvent the traditional hassles of developing your wallet is by opting for a whitelabel cryptocurrency wallet.

Contact Blockchain App Factory, a company that expertises in cryptocurrency for world-class solutions on how you can get a secure, fortified, well designed app to take care of all of your crypto funds.