WALLET of Cryptocurrencies or purses – VERY Important

Cryptocurrency Wallet or Purse why it is so important in the cryptographic world and in blockchain technology are wallets or purses.

The term cryptocurrency Wallet refers to a virtual wallet, purse or portfolio in which we can manage our crypto assets. It is software or hardware designed exclusively to store and manage the public keys and private keys of our cryptocurrencies.

Basically, the investor has three options: leave custody with the broker from whom they bought the cryptocurrencies, use a digital wallet or purchase a physical wallet, also known as a Hard Wallet.

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Which are the best ideal cryptocurrency Wallets for the investor

According to experts, the ideal portfolio depends a lot on the investor's profile and is linked to the ability to carry out the custody and transfer of their assets and their knowledge of digital security.

With the two major cryptos, Bitcoin and Ethereum, rising in value, protecting your investments is critical. Whether against attacks by hackers or scammers, cryptocurrencies have in fact become increasingly coveted by these groups.

Just like money and cards, cryptocurrency must also be stored so that it is not lost or, worse still, stolen by criminals. Also found as wallets, digital cards are responsible for storing the keys – sequence of numbers to pay and receive crypto – that give access to your balance.

There are two types of keys: public ones, which are used for sending and receiving, like a token address, and private ones, which are similar to the Lady of a Chest and cannot be transmitted to anyone.

Just like money and cards, cryptocurrency must also be stored so that it is not lost or, worse still, stolen by criminals. Also found as wallets, digital cards are responsible for storing the keys – sequence of numbers to pay and receive crypto – that give access to your balance.

There are two types of keys: public ones, which are used for sending and receiving, like a sample address, and private ones, which are similar to a password safe and cannot be transmitted to anyone.

When making cryptocurrency transfers to a cryptocurrency wallet, the operation is recorded in a blockchain or chain of blocks, here all transactions are recorded. The wallet is just a tool that allows you to access and control your assets.

Know the options of cryptocurrency Wallets or purses

Basically, the crypto investor has three options to store their assets: leaving custody with the broker that sold the coins, using a digital wallet or acquiring a physical wallet, also known as a Hard Wallet or Hard Wallet.

When buying coins on exchanges, the investor can choose to leave the platform itself storing their cryptocurrencies. This option is the most used by novice investors, taking into account that no action is necessary to leave the assets with the platform.

Digital cards, or software wallets, are programs that can be downloaded to your computer and smartphone. They typically allow multiple cryptos, not just Bitcoin and Ethereum, with a key pair for each altcoin. In addition, this mode allows backup, that is, it is possible to restore the wallet.

In turn, Hard Wallets are physical devices that resemble flash drives and contain the keys and crypto assets of the investor. However, these devices are not free like many Soft Wallets or soft wallets.

Advantages and disadvantages between Hard Wallet and Soft Wallets

Regardless of the type of wallet chosen, be it soft or hard, soft or hard, the investor needs to guard the recovery words very well, unless you keep your assets on the exchange, as in this case you won't have to do this.

Furthermore, like seed words, they make or support assets. If you lose your phone with your Soft Wallets or your Hard Wallet goes bankrupt, you can easily recover with these backup words.

If the investor decides to leave his cryptos in the broker, he will not have to worry about custody or the procedures necessary to have his own wallet. However, it is worth remembering that these platforms are much more visited by cybercriminals, given the volume of money they contain.

Soft Wallets are programs installed on computers and mobile phones with some paid and other free options. However, one of its drawbacks is the need for Internet access to carry out transactions. Another negative point is that they are subject to attacks from hackers and criminals.

On the other hand, Hard Wallets or hard wallets are always paid and acquire one of the costs on average ranging from $70 to $3,000. Like digital cards, there is the possibility of making backup copies. However, it is worth remembering that in case you go back on your word, your assets will be lost forever.

Opinions of two experts on Wallets and other options

According to experts, the optimal type of cryptocurrency wallet or Wallet will depend on the user's ability to carry out custody and transfer of their assets and knowledge of digital security. «The best thing in the world is that you do your own security, that is, be your own bank. The great magic of blockchain is precisely that, turning everyone into their own banker," says Bernardo Quintao, a Bitcoin market diplomat.

For Ney Pimenta, CEO of BitPreço, the laymen in the matter are safer leaving the assets with the broker. «If you are a very beginner investor, I advise you to choose a good broker so as not to lose your assets. To choose a good exchange, it is enough to check the credibility. The first point is to check if customers have already had security related issues. Look at the time it acts in the market“he says.

By leaving their assets on the exchanges, the investor has a series of additional security measures to protect their money. One of them is two-factor authentication, or double authentication. With this extra layer of protection, the user is able to prevent access by criminals, even if they have the password stolen, because to log in they must enter the code received on their mobile.

However, this additional protection is not 100% certain. According to Fábio Assolini, a senior security analyst at Kaspersky, the problem with the two-factor authentication of Soft Wallets and exchanges is the code that is sent via SMS. "By using this medium to send the key, the probability that someone will capture this SMS is high," he says.

The security analyst explains that in the United States there is a wave of crypto asset theft in which fraudsters carry out a scam called sim swap, in Spanish, chip exchange, or Chip change. The criminals go through the operators' own client and manage to activate their number on another chip. This way, all your authentications go to the thief's cell phone. Until you know it, all your accounts are reset to zero.

"So my suggestion is that investors go for platforms that use two-factor authentication done through apps, like Google Authenticator," says Assolini.

The safest options are always Hard Wallets

According to Assolini and Pimenta, the “safest” option, as long as they are well managed, are hard wallets. “However, you should pay special attention when buying your wallet, as it can be hacked. One must buy from reliable sources. I do not advise buying on the free or second-hand market," says the CEO of Bitprice.

In Assolini's opinion, Hard Wallets, while secure, are not practical. “Because there is a cost involved in acquiring the wallet, so a lot of people don't want to afford that and they also want the opportunity to transition quickly,” he says.

In case you are thinking of purchasing your own physical wallet, Assolini recommends going to bitcoin.org. Here the investor can check various types of portfolio, from physical to digital.