Picking a Wallet for Your Crypto: What To Look For

The selection of a cryptocurrency wallet requires a clear understanding of the wallet type specifics available today. Such specifics contribute to the security of the crypto funds, as well as their availability. The features of the digital wallets also offer specific benefits in the form of additional analytics and management tools. At the same time, these benefits may also result in additional risks for their users.

Types of Wallets and Their Specifics

Cryptocurrency holders are able to select from the five main types of digital wallets. These wallets differ based on their core features:

• Online wallet: offers access through several devices using internet connection and cloud technology. The convenience of the wallet also implies additional types of risks.
• Mobile wallet: works through an application installed on the smartphone. The security of the wallet largely depends on the security of the phone.
• Desktop wallet: requires installation on the personal computer. Similar to the mobile wallet, the security of the desktop wallet depends on the security of a particular PC.
• Hardware wallet: includes installing private keys on an external device, commonly the USB drive. Such a wallet requires internet access only during authorization during the transaction, making it the most secure one from the previously mentioned types.
• Paper wallet: implies using a physical paper for recording keys. The recording may exist in the form of QR code for the subsequent scanning. Similar to hardware waller, its offline nature contributes to its security.

FoPay wallet

FOIN wallet will combine the features of the mobile and desktop wallet with the cold storage features supporting the safety and privacy of the transactions. The core benefit of the wallet stems from its ability to simplify the financial operations for the merchants accepting various types of cryptocurrencies. Merchants will be able to register using their email and the password with the set minimum security level. The system allows password restoration using the verified email. Verification option utilizes Google Authenticator.

By the way FoPay was confirmed to be completely secure. Find out more details in this article.

Merchants are able to add users to their back office to ensure cooperation, while also managing the levels of their access and blocking them upon necessity. FOIN wallet allows the addition of the other vendors for further cooperation. Each vendor receives a unique code for entering on the merchant’s website during the payment process. The wallet provides the history of transactions with an ability to return the transaction from the current balance. The merchants are able to select the types of cryptocurrency accepted, while also withdrawing funds in the blockchain. The authorization process has an added level of security with the digital print of the merchant’s device. The merchants have to verify the new devices being added to prevent security breaches. Transparent Captcha protects against the phishing attacks. FOIN wallet allows managing hot wallets, while also transferring funds to the cold wallets.

Wallet Selection

The selection of the specific type of waller requires consideration of the following factors:

• Security level
• Convenience
• Cost
• Utility
• Design
• Analytics

Wallet security depends on its exposure to the internet or potential access for the third parties. Hot wallets imply constant internet access, while cold wallets minimize such access. The recommended strategy is to utilize the cold wallets for storing the long-term funds while managing the short-term funds with the hot wallets. Such an approach will minimize the risks related to the large sums of cryptocurrency while allowing flexibility with frequent transactions.

Various wallets fall into different types of core categories with the respective benefits and drawbacks.

Online wallets

Coin.Space wallet

Coin.Space wallet is a multi-currency wallet supporting Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, and EOS. The wallet uses AES-256 encryption for the device on the client side. The wallet enforces BIP 39 encryption during wallet creation. The access to the wallet implies entering the 4-Digit log-in. Coin.Space wallet protects https websites from impersonation with the fraudulent certificates.

BitGo wallet

BitGo offers a business wallet with cold storage features. The wallet includes institutional-grade controls, namely whitelists, spending limits, and multiple approval levels. The wallet supports over 100 cryptocurrencies and tokens. The accounts vary depending on the level in the organizational structure. Furthermore, the wallet also offers storage for fiat currencies.

Mobile wallets

Mycelium wallet

Mycelium wallet is a single-currency Bitcoin mobile wallet offering a wide range of features. The wallet allows sending and receiving bitcoins while offering bank-level security. The wallet offers five types of accounts, namely Hierarchical Deterministic, a single address, hardware, Bit ID, and watch only. The wallet has integration with Cashila, Glidera, Coinapult, and Trezor. The core features are billboard, secure chat, privacy focus, and trader rating availability.

Eclair Mobile

Eclair Mobile is a single-currency wallet offering connection to Lightning Network for instant and relatively cheap payments. The wallet supports Bitcoin. ACINQ has developed Eclair mobile with the Electrum server support and routing synchronization.

Desktop wallets

Electrum wallet

Electrum wallet is a hardware wallet focusing on speed and simplicity, as well as the low usage of resources. The wallet ensures encryption of the keys, as well as recovery of funds with the added level of security. Electrum wallet utilizes the servers indexing Bitcoin blockchain, contributing to the speed of the transactions. The verification of the transaction history occurs with the SPV technology. The wallet also offers cold storage capability, while supporting the third-party plug-ins.

Armory wallet

Armory wallet focuses on security through cold storage and paper-backups. The cold storage and the distributed multi-signature technologies support the security of the wallet. Offline Bitcoin wallets imply complete avoidance of internet connection. The approach implies the utilization of watching only the wallet during the connection to the web. Theft is possible only in case of physical access to the desktop.

mSIGNA wallet

mSIGNA wallet supports corporate-level scalability, simplicity, and speed of the transactions. The wallet supports BIP32, offline storage, multi-signature transactions, paper backups, encrypted electronic backups, as well as multiple device synchronization. mSIGNA wallet was created by Ciphrex Corporation. The wallet supports the creation of multiple keys’ generating with the one-time master key backups. mSIGNA wallet allows account sharing as well as access from different devices, contributing to the utility of the wallet.

Hardware wallets

KeepKey wallet

KeepKey wallet is a hardware-based wallet supporting multiple cryptocurrencies. The wallet offers the physical device with a display for the connection to the PC via USB port. The device supports the generation of the private key, storage, and signing of the transactions. The process includes initialization and backup that ensure the security of funds and transactions.

Ledger Nano S wallet

Ledger Nano S wallet offers a device with the OLED display for double-checking the transactions and confirming them. The wallet supports multiple currencies while focusing on simplicity and restoration potential. The total number of cryptocurrencies supported by the wallet reaches 1100.

Trezor

Trezor wallet focuses on convenience and security as its two core features. The wallet requires an online connection for signing the transactions. Trezor wallet has implemented several layers of security measures, including firmware verifications, protected key operations, additional passphrase support, secure updates, reliable recovery, hardware seal, and write-protected bootloader. Trezor wallet supports a wide range of currencies including Bitcoin, Litecoin, Ethereum, Dash, and Z Cash.

The analysis of the cryptocurrency wallets includes a wide range of factors, such as security, mobility, user-friendliness, convenience, and style. The wallets might be available free of charge, as well as at the cost reaching $99. Security levels differ based on the specific wallet type and its features. The mobility of the wallet depends on the type of the wallet, similar to style and convenience. Cryptocurrency wallets falling into various categories have their respective benefits and drawbacks, requiring careful analysis of the core factors before the selection of the most suitable wallet.

The variety of wallets is particularly broad in the modern day. However, the merchants value the combination of security, simplicity, and utility. FoPay wallet combines these features with a specific focus on security with the cold and hot wallet management, as well as the ability to work with various cryptocurrencies in a single wallet. Vendor control of the wallet is intuitive and understandable focusing on efficiency and effectiveness of the operations. FoPay wallet is responsive, secure, and useful. These features contribute to its superior position amongst the other available options.

If you’ve chosen FoPay wallet for your crypto our FAQ may be helpful for you.

Originally published at https://fopay.io on July 2, 2019.