Published on July 19th, 2022
Cryptocurrencies have acquired a significant part of an investor’s portfolio, but unlike the stock market, you can get a separate wallet to store your digital coins. Moreover, www.btcrevolution.io provides the best feature to traders, such as precise trading calls and live customer support.
Undeniably you get the option to keep the digital coins in your cryptocurrency exchange user account. Still, crypto wallets incur some potential perks that improve your trading and investment journey.
Dedicated wallets offer a massive number of features as compared to the cryptocurrency exchange in-built wallet. Here discussed are some potential benefits of utilizing a cryptocurrency wallet.
Benefits Of Using A Dedicated Cryptocurrency Wallet!
Security!
Due to the centralized nature of cryptocurrency exchanges, users must entrust their digital assets to others. Moreover, due to the complex nature of an exchange, a hacker can have access to your account and sell off all your digital assets quickly.
You make sure that your security becomes a priority by utilizing the dedicated wallet. Cryptocurrency exchanges ensure that they keep your password safe from hackers, but once you forget or lose it, it becomes tough for you to get back in control of your account. Email verification is one such process used by exchanges to keep users’ privacy intact.
2-Factor Authentication!
If you use a cryptocurrency exchange, you might receive regular emails with the details of your password change requests and many more. If a hacker gets access to this email, he can easily hack your account and sell off all the digital assets.
On the other hand, if you choose to use a crypto wallet, you don’t need to worry about these things. In addition, they ensure that only you will have complete control of your account, and no one else can even make simple changes to it.
Better Control Over The Assets!
If you store your cryptocurrencies on an exchange, you don’t have complete control over them. For example, exchange managers can sell off your digital assets whenever they wish to.
You can make regular deposits and withdrawals to and from these accounts at any time, and it is free of cost. As compared to the exchanges, crypto wallets offer better liquidity options, making them very important for day traders.
Different Types Of Cryptocurrency Wallets!
They make it much easier for you to store your cryptocurrencies and determine the features to use in your future cryptocurrency trading.
Public/private Vital Wallets
The most common type of wallets is private and public key wallets. In a public wallet, anyone can send money by depositing funds into your address. As a recipient, you will send the funds to someone else’s address or directly put them in your account.
If you choose to keep all these transactions recorded in a public ledger, it is known as a transparent wallet. On the other hand, in the case of a private wallet, only you and the person having access to your public key can view all these transactions. So it is known as a semi-transparent wallet.
Hybrid Wallets
A few hybrid wallets are a combination of two types of crypto wallets. Hybrid wallets use both public and private keys to store your digital assets. With this type of wallet, you can decide whether or not to make your transactions public.
If you choose, for want of safety, then all transactions will be made private. However, if you want complete transparency, all these transactions will be made publicly available.
Paper Wallets
Paper wallets are nowhere near as secure as dedicated online cryptocurrency wallets. You can easily make a paper wallet, take a digital picture of the QR code and keep it in a safe place.
On the other hand, digital wallets can be hacked in less than a second if safety measures are not used. Another significant benefit of using paper wallets is that you can print them at home and give them to your friends or family members for safekeeping.
Desktop Wallets!
Desktop wallets are wallets for keeping your cryptocurrencies safe. These wallets are downloaded and installed on your computer, and you can use them with a unique desktop platform like
Windows, Mac, or Linux.
Online cryptocurrency exchanges store all the user’s account private keys in servers to offer the best services to their users. Desktop wallets store all these private keys on your PC, making them very easy to carry around and use anywhere you go.
Image Source: Pexels.com
