Technology is affecting the way people do nearly everything these days–particularly the way they manage their money. There are digital currencies that take dollars out of your wallets and keep them stored in a drive or a cloud, like popular cryptocurrencies Bitcoin and Ethereum.
If you’re a person who uses Bitcoin to make financial transactions or you are interested in investing in cryptocurrencies, one of the smartest moves you can also make is to use a cryptocurrency wallet. A cryptocurrency wallet is designed for the particular purpose of managing cryptocurrency for safekeeping, and it’s the best choice for using your money and keeping it safe. Here’s why you should have a cryptocurrency wallet for your money today.
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What is a Cryptocurrency Wallet?
A cryptocurrency wallet is a type of software that stores information about your cryptocurrency, allowing you to interact with various blockchain and send or receive digital currency. A wallet doesn’t store actual currency, it stores both private and public keys that can interact with different blockchain. You can get an app-based crypto wallet, one that exists solely on the cloud, or one that’s stored on a desktop. You can also invest in a physical hardware wallet for your cryptocurrency.
Why Should I Be Using a Cryptocurrency Wallet?
Here are the four most important reasons you should be using a cryptocurrency wallet today:
They Give You More Control
If you don’t use a cryptocurrency wallet, your private and public keys are stored on an exchange. This means that you’re entrusting your keys to a third-party, which means that if they shut down, or they have a security issue, you run the risk of losing your currency. There is no regulatory body for the exchanges, so there’s no one overseeing what happens to make sure your currency stays safe.
They are Convenient
Cryptocurrency wallets are convenient for you to use. If you use an online cryptocurrency wallet, you can access it from any device that has an Internet connection. Simply log in to your wallet and send and receive from there.
They are Safe
Not only do cryptocurrency wallets give you more control over how your public and private keys are handled, they generally provide more security for your currency than if you did not keep them in a wallet. Hardware wallets are particularly safe because they’re not kept online and, in turn, not accessible by hackers.
Why is Not Using a Cryptocurrency Wallet Naive?
If you choose not to use a cryptocurrency wallet, you’re making a naive decision that could put your currency at risk.
Most importantly, because there is no regulatory body of the exchanges, and they are hackable or reachable by outside security threats, if you leave the keys to your currency in the exchange, you expose it to a wide range of threats that could take it away.
Also, using cryptocurrency as a means of paying for goods or services should be convenient and easy. By using a cryptocurrency wallet, you can give yourself easy access to your currency when you need. If not, the process to access and exchange your currency can be more involved or a hassle, negating one of the reasons that cryptocurrencies were invented in the first place.
If you’re ready to invest in cryptocurrencies like Bitcoin, or you already have but you’re not keeping your money somewhere secure, it’s time to get a cryptocurrency wallet. Wallets can make using the currency easier than ever, while also ensuring that your money stays safe, so you can invest and spend with confidence.