When crypto traders decide to buy and sell cryptocurrencies, they will need a space to keep their currencies safe. While choosing a cryptocurrency wallet, the first aspect that users consider is safety. The general belief is that only good cryptocurrency trading services can provide safe and secure wallets. So if you’re a crypto exchange wanting to add a wallet to your service offering or a wallet service provider in the making, safety should be on top of your agenda. Before we get to wallet development, let us understand how a wallet functions and which are the best crypto wallets available on the market.

What Are Crypto Wallets?

A crypto wallet is a software programme or a physical device that stores your private keys  and allows you to send and receive cryptocurrencies. Private keys are nothing but passwords that give you access to your cryptocurrencies. 

Unlike normal wallets, which can hold actual cash, crypto wallets don’t store your crypto. Your crypto lives on the blockchain but can only be accessed using a private key. Your keys prove your ownership of your digital money and allow you to make transactions.

Private key and public key is the key pair that makes up a crypto wallet.  A public key allows you to receive cryptocurrency – it’s a cryptographic code that’s paired to a private key. While anyone can send transactions to the public key, you need the private key to prove that you are the owner of the cryptocurrency received in the transaction.

A cryptocurrency wallet, which can be hardware or software, provides a secure location to keep your proof of ownership. Crypto wallets are not only safe but they also provide you greater control over your digital currency than most exchanges.

Moreover, the use of crypto wallets has been more diverse now. They are not just used as storage devices but are also playing a major hand in Web 3.0 development such as smart contracts processing applications, NFT storage and much more.

How Do Crypto Wallets Work?

When an investor sends you a digital currency, such as Bitcoin, Ethereum, Cardano, Ripple, or any other asset, it does not necessarily mean they are sending money to your crypto wallet. It means they’ve signed off on your wallet’s address as the owner, which means the crypto on the blockchain now belongs to you, not them. As we discussed earlier, the two significant components of crypto wallets are private key and public key.

  1. Public Key: It is a string of characters that represents the identity of the user. This key can be shared with anyone in order to perform transactions but at the same time others cannot access it.
  2. Private Key: The accessing part comes in the private key. This code is also a string of numbers and alphabets which is known only to the user.

Top Crypto Wallets To Look Out For In 2022

  1. Exodus: Exodus is a piece of software that encrypts your digital assets and stores them on Trezor hardware. The platform allows you to earn a lot of money on your digital assets. You can use its mobile or desktop version, depending on what  works best for you.

You can not only store your coins and earn a reasonable interest rate on your savings but you can also send and receive coins with ease. The organisation provides customers with round-the-clock customer service, informative FAQs, videos, a large knowledge base and charts to guarantee that they get the information they need.

The platform is also recognised for allowing you to receive, send, and exchange cryptocurrency using your mobile, desktop and hardware wallets while on the road.

  1. Binance: Binance is a fantastic website that allows you to trade or invest in over 150 different cryptocurrencies. The platform is well-known for having an API that allows you to integrate your existing trading programme.

Binance primarily assists you in creating a Bitcoin wallet and provides 24/7 customer service. Clients for iOS, Android, Web and PC are all supported by the software. In addition, Binance provides both basic and advanced trading interfaces.

  1. Coinbase: ​​Coinbase is the finest cryptocurrency wallet and ranked first on our list for a variety of reasons. It’s a cryptocurrency exchange that shot to fame in the US quite quickly. The website allows investors and traders to purchase and sell a wide spectrum of coins, including Bitcoin, Dogecoin and Tezos. In addition, the firm has its own Visa-backed debit card that works with Apple Pay and Google. The platform also has offline storage for a variety of digital assets and is supported in over 100 countries. When people sign up for Coinbase, they will also receive a $5 registration bonus. You can also schedule your currency trading on a daily, weekly or monthly basis. 
  1. Huobi: This crypto wallet is majorly known for its expert services in asset diversity management. Huobi is a multi-asset platform that sells a variety of cryptocurrency-related goods and services. Since  the platform allows you to access hundreds of different tokens, it is one of the best Bitcoin wallets for asset diversification.

As a result, if you’re the type of investor who likes to invest in a variety of projects, the Huobi wallet may be used to keep all of your tokens in one secure location.

  1. Mycelium: Mycelium has been active since the dawn of the cryptocurrency age, and its wallet is one of the most well-known Bitcoin wallets. This is a mobile-only wallet that supports both Android and iOS. There is presently no desktop version.

The Mycelium wallet features a pleasingly basic UI, however it only supports a few types of cryptocurrencies compared to others listed here: You may send and receive Bitcoin, Ether and ERC-20 tokens like Tether USD, USD Coin and Binance USD but not the hundreds of esoteric coins created in recent years. You can purchase and sell Bitcoins right in the app, and Mycelium also allows you to buy Bitcoins using conventional fiat currency.

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