It is only natural for anyone who has money to find a safe place to keep it. It’s the major reason why banks have become an indispensable part of our financial systems. Although cryptocurrency is virtual money, you still need to keep it safe if you do not want wish to lose it. Exchanges cannot be trusted to do this job for you. The high volume of trade that goes on daily renders them vulnerable. Thankfully, wallets are there to the rescue. We present some of the best cryptocurrency applications for storing your digital wealth. All the wallets presented here are ‘hot wallets’. This means they are always online whether you are connected to the internet or not. If you need to store a large amount of cryptocurrency, you should consider creating an offline wallet.
If you need to store your Bitcoin, there is hardly a better wallet than the original Bitcoin client. Bitcoin core is available for Mac, Linux, and Windows operating systems. The wallet is designed as a ‘full node’ Bitcoin wallet. This means that the moment you launch and create an account, it would download the full blockchain available (a little over 160GB at present). Subsequently, it downloads the blocks as they are updated. Although this type of wallet may be heavy on data consumption, it holds numerous benefits in terms of security. As it possesses all blockchains, you would be protected from scams. A person cannot spend the same BTC twice if you use this wallet and you cannot be deceived into believing you have received funds that have not been sent. The wallet also guarantees your privacy with the Tor anonymizing network.
Launched in 2014, Jaxx has the advantage of embracing a number of cryptocurrencies. It is more than a Bitcoin wallet as it is capable of storing other coins such as Bitcoin cash, Ehtereum, Litecoin, etc. the first time you launch the wallet, you are given a 12-word master seed that you would be asked to write somewhere and keep it safe. Without this master seed, it may be impossible to recover your wallet if you fail to remember your password. Jaxx has a simple interface that makes it easy to use for beginners. It could also serve as a mini-exchange as it allows for the conversion of one cryptocurrency to another, as long as both currencies are supported. The security of the wallet has been questioned a number of times. So, it is advisable to use it for storing only a small amount of cryptocurrencies.
Electrum also supports the popular operating systems namely Mac, Windows, and Linux. Unlike Bitcoin Core, Electrum is a thin wallet. It doesn’t download the entire blockchain. Instead, it relies on other servers when it needs to process payments or check your balance. This could make processing of transactions very slow but it is a very good alternative for individuals with limited internet access. The ‘thin’ nature also makes it susceptible to certain kinds of security threats.
This is a beginner-friendly wallet that also has the added advantage of being able to hold multiple currencies. It also generates a master seed on start-up and you are advised to keep the master seed safe and offline. If you have multiple coins in the wallet, you can get a quick glance at your balances via an easy-to-read pie chart. Conversion of one cryptocurrency to another is allowed on the wallet. When choosing a digital wallet, security should be your foremost consideration. In the light of this, there seems to be a preference for open-source wallets which allow the community to constantly review the system for bugs. Among the wallets listed above, Bitcoin Core and Electrum are open-source, Jaxx is closed-source and Exodus is somewhere in=between.