Software Wallets for Cryptocurrency

Software Wallets for Cryptocurrency

Many platforms offer storage services for crypto coins. Key to success in crypto trading lies in attested and affordable electronic wallet. Below we will consider various software cryptocurrency wallets including their pros and cons.

While blockchain technologies and crypto market is expanding, crowds are craving at earning on digital currencies. 

Cryptocurrency Wallets Types

A crypto wallet is a space where your digital funds are stored. Wallets exist as programs and online applications recording transaction history.

Any cryptocurrency wallet consists of two distinguished components as follows:

  • Public key, i.e. so-called visible wallet address. 
  • Private key i.e. something like a password giving access to your savings.

Convenience and ease are one of the main qualities of mobile cryptocurrency wallets which are increasingly gaining popularity among users of Bitcoin and altcoins. A self-explanatory smartphone application allows easily checking your account balance, make purchases, transfer and receive money, refill your deposit, trade with crypto coins. The main criteria for choosing a mobile crypto wallet include easy-going interface, versatility, speed, usability, security, low power. The best selection is available for Android and Apple devices while BlackBerry OS has the fewest options. However, digital wallets do not store currency as virtual currency does not take any physical form existing only as transaction records in the blockchain. Taking into account that blockchain is growing, it requires several hundred gigabytes of memory. Smartphones do not provide corresponding storage size; therefore, an ample quantity of crypto coins needs solid and safer storage.

Web wallets are accessible via user`s browser and store private keys in the cloud. Beginners prefer this type of wallets because they use them for free without having any additional equipment.

Electronic systems are similar to ordinary banking operations. All users have their own accounts enabling payment transfers between them, as well as between their own web wallets.

Target audience using online wallets includes:

  • Customers shopping online;
  • Remote workers;
  • Entrepreneurs conducting business in the Internet and make a profit through web sites, blogs and social networks;
  • Advertisers and SMS managers who advertise in the network;
  • Users who make betting or play on various paid servers.

In other words, an online wallet is suitable for almost all users.

Such payments can be made from any gadget and any point having available Internet access. It takes several minutes to proceed with majority of payments which are properly recorded by the system keeping all transaction information. However, if a user has lost password to enter the system, it will be difficult to restore that, because the service requests a whole package of documents in order to prove identity of electronic wallet owner. 

Software wallets mean applications installed on users` devices guaranteeing higher security level and more control over wallets than any online alternatives. Software wallet can be accessed exceptionally via device on which it has been installed. Choosing this particular type of wallets, you`d better get a reliable antivirus program and keep a backup of your software wallet, as there are malicious programs allowing hackers to access your data and then steal your funds. Beyond that, if your PC breaks down you will lose an access to your funds along with entire cryptocurrency amount accordingly.

Thick software wallets mean complex software which downloads a complete chain of blocks and regularly updates it. System can verify authenticity of each transaction along the way and track all crypto coins providing with ultimate security level but by reason of its bulkiness the operational speed is slow.

Thin software wallets are portable and foremost applied on tablets, low-power laptops and smartphones.

Today, there are countless solutions on cryptowallet working principles, however, no matter which assets they are aimed at, all cryptowallets are divided into hot and cold ones.

Despite the same purpose of storing cryptocurrencies hot and cold wallets are substantially different.

“Hot” wallets operational mechanism is based on Internet connection giving easy and fast access to store private keys with but at the same time making them vulnerable to hackers. These are exchange accounts, online services, applications for smartphones, some wallets for PCs. Nevertheless, such services are convenient for making frequent transactions. 

A “cold” wallet has an opposite working principle. Private keys are stored without an Internet connection. From one side transaction processing is characterized by bulkiness of its procedure and slower speed, but from another side users can be sure that hackers will not get private keys. Such wallets can be either stationary or portable. The closest analogy is an external hard drive for a computer, where many people store some important data or documents. A primitive piece of paper, where the private key is printed and exclusively stored is also a type of cold wallets. Due to the inability to maintain frequent transactions cold wallets are an ideal solution for long-term storage of big amounts of crypto coins with the ultimate level of security. 

Experts recommend to use cold and hot cryptocurrency wallets in combination. Cold and hot cryptocurrency wallets demonstrate the greatest efficiency in collaboration.

Those users who are engaged in mining will definitely have a dilemma making decision on which electronic cryptocurrency wallet to choose. There are a lot of options for storing digital coins and the range of offers on the market is constantly extending. Before you make a final decision, you should consider on how exactly you plan to use your savings and how often you will need to access them. With smaller amounts and frequent private operations, it is rational to turn to special services and applications, but if your coins require for reliable savings, it is recommended to pay attention to cold storage methods. Choosing a cryptocurrency wallet will mainly determine your first experience with cryptocurrency. If you choose the wrong one, then you risk losing all your money. The list of popular crypto wallet versions changes slightly over time, thus it is better to give preference to those ones which are offered by cryptocurrency sites, since they are tested directly by developers of virtual currencies.

Read also about Hardware Wallets for Cryptocurrency

Top 10 software wallets

Blockchain

Blockchain.com multi-currency wallet was created in 2011. The wallet supports transactions in the following currencies such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Stellar Lumens (XLM). It is available for iPhone and Android users. It has two-step authentication, you can create SEED codes and complex passwords, which makes it very reliable. Blockchain.com as a leading cryptowallet provider has launched a cryptocurrency retail lending program called Borrow available since March, 2020. Users will be able to get loans in digital USD stablecoins on the security of Bitcoins. In the future, the list is to be expanded with other cryptocurrencies supported by Blockchain.com such as Ethereum, Bitcoin Cash and Stellar.

Anonymous Rahakott Wallet

The wallet has a reliable protection, all data on servers is securely encrypted, even developers will not be able to reach it. An only way to access your wallet is to use your SEED phrase. Creating a wallet will not be a big problem, in 15 seconds you become .an owner of Rahakott Bitcoin wallet. 

Coinbase.com

Coinbase is one of the largest cryptocurrency trading platforms in the world. The application supports Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), EOS, Tezos (XTZ) and the native stablecoin USDC. The wallet has a self-explanatory user interface and offers its customers various financial instruments.

Exodus

This multi-currency wallet has a very easy -to-use interface being ideal decision for beginners on the crypto market. The software is available as for mobile devices (iOS, Android) as well as for desktop computers (Mac, Windows, Linux) supporting 103 cryptocurrencies. Users can quickly get help from technical support, which attracts people and makes the service popular.

Bitcoin Core

This desktop wallet is aimed at storing Bitcoins with full validation. A wallet requires for installation of entire Bitcoin blockchain to a computer, which captures a large amount of free memory, as well as time for complete synchronization. The wallet is a check point for other transactions in the Bitcoin network.

Electrum

This desktop Bitcoin wallet with extended functions works only on computers, as application has not yet been planned for mobile devices. Interface is popular among advanced users, and may be not convenient for beginners. Electrum supports only Bitcoin. It was introduced to the cryptocurrency market a long time ago and gained users` recognition and credibility.

Opera

This browser wallet is available for iOS, Android and desktop computers. At the moment, the wallet allows transferring and storing Ethereum and all tokens and stablecoins of the ERC-20 standard. Opera wallet owners get access to decentralized applications directly from the browser. In order to start working with dApps, a user has to purchase Ether and store it in the wallet.

Jaxx 

Being both mobile and desktop wallet this application provides with internal currency exchanger supporting several cryptocurrencies. Its ability to come up with SEED codes and a nice interface are main advantages of the wallet.

Coinomi

Coinomi is a multi-currency mobile wallet which supports over 40 crypto coins and tokens (including ERC-20), having a built-in ability to exchange coins among themselves including a function to regulate commission rate and selecting different languages for its interface. Earlier, Coinomi wallet worked only on Android, but developers released an application for iOS.

BitGo 

BitGo is a multi-currency online crypto wallet equipped with three keys. The first key belongs to site admins. The second key is possessed by the client. Third one is stored at Key Recovery Service. Bitgo transfer requires two signatures. In some cases, the owner is allowed to apply Key Recovery Service key. The system monitors such transactions to prevent users from hackers’ attacks.

Whichever option is taken, key security is in a sole user`s responsibility. Preventive measures shall focus on a regular updates of anti-virus programs, creating key backup copies and installing supplementary security rates.

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