A cryptocurrency wallet is what allows you to receive, store and spend cryptocurrency. It stores the public and private keys by which these operations are possible. It is like your bank account (wallet) which regroup and manage your sub accounts in the same bank (address).

To function, all wallet needs at least one address (called public address). Thus, your address is the “subaccount” that you give to your debtors to receive cryptocurrency, as you will give your account number to partners to receive money.

Each address is a long string of alphanumeric characters, but can be represented on the form of a QR code to be easy to scan.

Example of bitcoin address: 34eFfugtubn7qfRrQuZKbPnLwwsbYjSmM1

A wallet generate and store in reality couple of public/private keys. This keys will permit you to make your transactions and insure integrity of this operation. Public key is commonly called address and private key your signature (password). To receive cryptocurrency, you just need one public key, however to spend, private key is necessary.

Wallets generate and manage addresses (public keys) on demand. Some can also manage imported addresses from other platforms.

Choose your wallet:

Different types of wallet exist depending of what you want:

1- HOT WALLETS :

Hot wallets are those functioning on electronics apparatus (desktop computer, smartphone or tablets) connected on internet. Exp. Coinbase, Blockchain info, etc.

Online wallets:

Online wallets keep their private key online, where they are crypted with the help of a password define by the user. They have the advantage to be accessible from any connected device.
It is possible that the chosen wallet can be compromise or be offline due to technical reason.

Online wallets offer a low level of security.

Mobile wallets:

These are applications made for smatphone users, facilitating their transactions where ever they are.

The physical stealing or eventual hacking of their smartphone tend to make this solution vulnerable.

Desktop wallets or Local wallets:

These are software that can be downloaded and install on your personal computer. These wallets are divided in two categories:

• Full-nodes wallets, who keeps the entireness of the blockchain on your computer, and thus allowing you to be an actif user on the network. This is based on the principle of decentralization. You will need to have a large hard disk (stockage area) to register the blockchain and keep it up to date regularly.
• Light wallets, which keeps the blockchain localy, but depending of the existing blockchain network. It is generally based on servers without trusting them totally, they always verify the integrity of data. Their confidentiality is lower because the simplification of the validation of transactions needs the intervention of another server (central server), which associate your ip address with your transactions.
  Although the security level of different desktop wallets are high, you will always have to make sure that your computer is not vulnerable to virus, malwares, spywares, keyloggers or Trojans.

2- HARDWARE WALLETS

Hardware wallets are digital apparatus conceive to secure your assets in an optimal and independent way, because they keep your private keys directly in an embark sim, not vulnerable to physical, software attacks. The signature of transactions is made within the microprocessor. Thus, by diffusing through less secure computer or compromise there is no means to find your private keys. This is a highly secure way to keep your assets.

To spend your assets, the physical wallet have to be connected to your computer, smartphone or tablet.

3- Choose between a hot or hardware wallet:

Hot wallets generate your private keys on a connected devise, these private keys can’t be consider as 100% secure. It is advise to use a hot wallet as purse. It can keep a little liquidity, but not all your money. It is advantageous if you regularly make payments.

For its high level security, a hardware wallet is more indicated in case where you want to simply invest, keep your assets or if you possess an important quantity of cryptocurrency.

Lets note that hot wallets are free although hardware wallets are not.

Each type of wallet have its advantages and incovenients and they exist to bring solutions to different problems.

Some wallets target security, others target confidentiality.

Your needs determine the type of wallet that you will use, because there is no “perfect wallet“, it all depends of the situation.

Secure your wallet:

Cryptographic currency is liquid cash. If you loose your wallet, you loose your money. You need to be cautious in the manipulation of your assets :

• Use unique password, strong and long when you create your account: One strong password needs to have strings, numbers and signs and need to have at least 16 characters.
• You have to make sure to remember your password or your assets will be lost. In doubt, you have to keep a paper copy of your password in a secure place such as a safe.
• Have recourse to services with many level of authentication (for example password with sms confirmation)
• Keep the control of your private keys.
• Generate your private keys in a secure offline environment.
• Crypt your wallet for more security: your apparatus or hardware wallet can be stolen.
• Protect your equipments with a password.
• Keep your software up to date: the last version of your software have security corrections that are very important.
• Scan your computer regularly to protect your computer against viruses and other malware.
• Be very careful with online services: Many stock exchange and online wallets have been victim of attacks due to security failure in the past. Just keep small amount of money in your mobile or online wallet.
• Your savings should be kept in a secure environment: an offline wallet, also known as as cold storage offers high level of security for savings.

Usage of your wallet to receive and spend your assets:

How to receive coins?

To receive coins, you need to give your address (public key) to your partner. It is like given him your bank account number for provisioning.

How to spend coins?

From your wallet, retrieve the menu which permit you to send coins, the follow the steps which will bring you till the end of the operation. Note that for this you will need the public key of your partner.

Ranking of the best cryptocurrency wallets