What Is a crypto wallet?
Although we talk about cryptocurrency as if it's the same as your usual bank assets, crypto is unique in how it works. Everybody's crypto holdings remain on the blockchain. Each wallet has its own public address (which is visible on the blockchain), and the only way to access your funds is through a "Private Key."
This is where a crypto wallet comes in. Crypto wallets will keep the user's private keys to their different currencies. With these keys, the wallet allows two things. First, it allows you to prove ownership of the digital currency, and second, the crypto wallet makes buying, selling, and trading cryptocurrency simple and easy for the user. Lastly, it will enable you to access easy multiple crypto casinos, take advantage of their different offering without having to leave your stash in the casino's hot wallet for long eventually becoming a liability.
Types of wallets
There are various types of wallets. Each has its own purpose and caters to specific audiences. The wallers can vary from online apps to a piece of paper with a QR Code. Let's break down some basic types of wallets.
Paper wallets are extremely simple. The user removes their Private Key onto a piece of paper in the form of a printed QR code. These can technically be the most secure and unhackable wallets, but they pose multiple issues. With a paper wallet, the user also can only move a specific amount of funds and, therefore, can't be reused. We suggest avoiding them.
A Hot wallet is the most common type of wallet used today. These wallets are generally free to use. They cater mainly to short-term investors, people who move their crypto around a lot, and people who are new to the crypto world. A hot wallet is generally a piece of software that uses cloud-based services for the crypto wallets.
Hot wallets come in three forms; Desktop Wallets, Mobile Wallets, and Online wallets.
These hot wallets are usually much more user-friendly and can easily be accessed anywhere, anytime. However, they are usually much less secure and are often subject to hacks or phishing attempts.
Hardware wallets / cold wallets
Hardware wallets are more popular for those who seek anonymity and security and want to hold funds for the long term. A hardware wallet is a sort of vault in the form of a USB. All the wallet information is stored offline, and the only way the owner can access their funds is by connecting the hardware device to the internet. These are popular for their hack-resistant features.
Dangers of wallets
Crypto wallets and crypto, in general, have a few flaws that could lead to you losing your funds or turning your effort to find anonymity pointless. Here are a few risks of using crypto wallets
As crypto wallets give all the responsibility to the holder, user errors can lead to losing access to your wallet and its funds. Some common mistakes that cause users to lose their funds are:
Lack of understanding of how crypto works
Forgetting passwords/ Mnuemomic codes
Sending funds to dead addresses
Losing their cold wallet
Due to the very nature of how cryptocurrencies work, the crypto industry is the most targetted industry when it comes to phishing and hacking attempts. Therefore it's essential that when using your wallet that you only access reputable websites or put in the research to ensure you're accessing a legit version of the website.
In addition to phishing and hack attempts, the cryptocurrency world is filled with scammers. This could be somebody promising trade and running away with your money or an entire crypto platform that ends up "exit scamming" with all user's funds.
Cryptocurrency is known for its unpredictable markets. Some cryptocurrencies that seemed reputable have fallen to less than 0.1% of their value within a few days. Although this is not specific to crypto wallets, holding your funds in a crypto wallet usually makes it more difficult and adds time to get to the point where you can exchange the cryptocurrency for a fiat currency.
How can you use them?
Crypto wallets give the user all the control. This means they can use the wallet as they please.
Casinos: Users can use their wallets to deposit funds to different crypto-based casinos. Some wallets, like Metamask, are imported into the casino UI to make things easier for the user.
Payments: The primary reason for the creation of crypto was to make decentralized payments easier. Using a crypto wallet, you can transfer crypto to anybody worldwide, and the funds should appear within a matter of minutes.
Investments: In the last few years, crypto has become one of the greatest investments. Using a crypto wallet, you have complete control over your holdings and can store them without trusting any third party to control them.
Anonymity: Anonymity is more critical than ever in a world that loves to control people and collect every bit of data as possible. Although there is more to it than just holding a crypto wallet, these are key aspects to ensure your funds and what you do with them remain 100% anonymous.
The top five crypto wallets
Choosing the crypto wallet that best suits your needs depends on a few factors and personal choice.
In addition to the types of wallets mentioned above, each wallet has its own characteristics. Here are a few factors you should consider when looking for the best crypto wallets:
Your understanding of how cryptocurrency works
Degree of control over the wallets
Anonymity and Security
The number of cryptocurrencies it supports.
Let's look at a few of the best crypto wallets and what makes them so great.
1) Ledger - the best hardware wallet
Ledger is known as the most secure crypto wallet in the crypto industry. The wallet has multiple models, but the most popular is the Ledger Nano S Plus. The offline wallet gives full control to the user and can only be accessed when unlocking the device using a unique password while plugged in using the USB-C cable that the wallet comes with.
The wallet is not the most user-friendly and requires a bit of basic crypto knowledge plus additional research to make sure that you keep your funds secure and accessible. But it helps the user remain %100 is anonymous using the Ledger-created proprietary operating system. The hardware wallet costs about $80, which is reasonable for its functionality when comparing it to alternative hardware wallets
2) Zengo - the most secure hot wallet
ZenGo is a widely supported hot wallet in the form of a mobile app. The wallet is extremely user-friendly and is one of the few crypto platforms that doesn't require KYC. The wallet includes a few additional features, such as buying and selling crypto within the dApp.
Zengo makes security a priority and includes security features such as 3-factor Authentication, Biometric Encryption, MPC Encryption, and more. This is the best crypto wallet for online gambling, short-term trading, and remaining secure.
3) eToro - the most user-friendly hot wallet
eToro is a great crypto wallet if you're new to the crypto market and just want to find a place to buy or keep your crypto for a while. The platform offers users top-tier customer service and is user-friendly in every way possible. But it is not an anonymous crypto wallet. Completing KYC is mandatory to use the wallet.
The platform is fully regulated, and therefore your funds should be secure and inaccessible unless your account is hacked. They combat this with 2-factor authentication and similar security measures.
4) PINT wallet - most anonymous hot wallet
PINT Wallet is the best on-the-go crypto wallet with top-tier features available through your mobile. The wallet only supports a few cryptocurrencies, but the wallet has a focus on Anonymity and user security which is why they allow users to use features such as its P2P marketplace, encrypted chats for Buyers and Sellers, in-wallet exchanges, and even escrow payments. Users can even remove their private keys to store in paper wallets or move them to hardware wallets.
The wallet is fast and easy to set up and provides its users with rewards as they use the platform. Overall it's easily one of the best crypto wallets.
5) Metamask - most popular crypto wallet
Metamask is easily one of the most popular crypto wallets. They have plugins on multiple casinos and crypto platforms to make things easier for the users. The platform is anonymous, doesn't require any KYC, and doesn't stores any user data. You don't even need an email to set up an account.
They include a few features, such as NFT support, multiple wallet addresses, and swapping of currencies. They have great live chat customer service and are supported by 21 million active users.
There are hundreds of wallets to choose from, and many more are being created each day. This means there is a plethora of options. Therefore you should take your time to research the wallets and what they have to offer. Once you've found one that suits you, test it out with something small, and take it from there.