What is a Crypto Wallet?
According to statistics from The Global Payments Report 2023, in 2022, Thais spent 25% of their total E-payment transactions through E-wallets. This trend is expected to continue growing in the future. However, what you might not have known is that E-wallets (Digital Wallets), as we commonly call them, function quite differently from Crypto Wallets in many aspects.
In the context of the crypto world, a wallet is an application or software used to manage digital assets (Cryptocurrency). This includes sending and receiving crypto, staking tokens, or storing NFTs obtained from playing blockchain games. Moreover, it's used to securely store essential data like Private Keys, which are necessary to access and conduct transactions with specific digital currencies.
What are the distinct advantages of different types of digital asset (crypto) wallets?
Digital asset wallets, often referred to as crypto wallets, can be classified into various types based on their usage and security levels, such as:
1. Hardware Wallet
It is a hardware device used to store Private Keys. The advantage of a Hardware Wallet is its high security, as it does not need to be connected to the internet. However, it requires the Private Key to be written down and kept exclusively by the wallet owner. It acts like a password, used to access the wallet, sign transactions, and prove ownership of a blockchain address. There are various popular Hardware Wallet brands among Thais, such as Trezor, Exodus, and Mycelium.
However, writing down your Private Key on paper still carries risks. If the paper is lost, your Private Key is lost as well. So, remember carefully where you store the paper and your Private Key.
Absolutely do not take a photo or write it down on your computer, as hackers can breach the system and access your Private Key information. It's no different than leaving the key at your front door.
2. Software Wallet
These are crypto wallets that are connected to the internet, easy to use, convenient, and often free of charge. Examples include Bitkub NEXT, MetaMask, Trust Wallet, or Exodus.
Software Wallets can be accessed by downloading software or using a web browser. However, Software Wallets are vulnerable to hacking through various channels and from untrustworthy service providers. Those who use Software Wallets should carefully research the service provider and exercise caution when using any device that can access your wallet.
As for the Bitkub NEXT wallet, it has been developed and rigorously tested to ensure efficient functionality and high security on Bitkub Chain, Thailand's leading blockchain network developed by Bitkub Blockchain Technology.
3. Mobile Wallet
It is an application installed on a smartphone or tablet to conveniently manage and use digital currencies. Generally, Mobile Wallets can perform various functions, such as:
Manage and store digital assets.
Conduct transactions, allowing for convenient and easy sending and receiving of digital assets through QR code scanning or entering wallet addresses. (For Bitkub NEXT, token transfers can be made conveniently by simply entering the recipient's mobile phone number or transferring via wallet address and KUB Name Service).
Check balances, enabling instant checking of wallet balances and transaction history.
Equipped with security systems, often including security features such as two-factor authentication (2FA), password setting, or fingerprint scanning.
Which type of digital asset wallet is suitable for storing your crypto?
The choice of crypto wallet type depends on individual needs and usage patterns. For those who prioritize convenience for daily transactions, Mobile Wallets or Web Wallets might be a good choice. However, for those who require high security and intend to store their digital currency for the long term, a Hardware Wallet would be the best option.
If you're looking for a digital wallet that is easy to use, convenient, and secure, don't miss Bitkub NEXT. It has been rigorously tested and operates on Bitkub Chain, which features a decentralized and distributed system (Decentralized) powered by blockchain technology. Read more.
How secure are crypto wallets?
The security of crypto wallets depends on their type and how they are used. Generally, Hardware Wallets are considered the most secure because they are not connected to the internet. On the other hand, Web Wallets may be more susceptible to hacking. Therefore, when choosing a digital asset wallet, users should consider the trade-offs between security and convenience based on their individual needs.
Ways to enhance the security of your crypto wallet and digital assets
There are several ways to enhance the security of your crypto wallet, such as:
Two-Factor Authentication or 2FA
2FA, which is like your trusty companion, is a two-factor authentication method using an application, such as Google Authenticator. It adds an extra layer of security for you.
Set a password that is easy to remember but hard to guess
Create a password using your own logic and patterns. You can use the names of objects around you as a basis for your password, and include lowercase English letters mixed with numbers. Make sure the total length is at least 8 characters. You should also avoid using passwords related to your birthdate.
Back up your private keys and store them in a secure location
Don't forget to regularly back up your password information and change your password every quarter. It is important to store your password or Private Key in a secure location.
Diversify your digital asset storage
The digital asset market, like all investments, carries risks. Utilizing a diversification strategy is a popular investment approach. For instance, if you hold various types of Cryptocurrency, you can transfer coins and distribute them across Hot Wallets and Cold Wallets. This aligns with the classic saying, "Don't put all your eggs in one basket."
Confidently own digital assets with the Bitkub NEXT crypto wallet
A crypto wallet is an application or software used to manage and store digital assets such as cryptocurrencies and NFTs. It securely stores important information like Private Keys, which are necessary for digital transactions. There are several types of crypto wallets, including Hardware Wallets, Software Wallets, and Mobile Wallets, each with varying levels of security and usage methods. The choice of wallet type depends on the user's specific needs.
In addition, enhancing wallet security, such as implementing two-factor authentication (2FA) and backing up private keys, is important in protecting your digital assets from malicious actors.
If you want to store your digital assets with confidence and enjoy a hassle-free user experience, Bitkub NEXT crypto wallet is an option you shouldn't miss. Sign up for Bitkub NEXT now.
Risk Warning:
- Digital assets are risky. Please study and invest according to your own risk tolerance.
- Bitkub NEXT is a Non-Custodial Wallet service provider that is not a business operator under the supervision of the SEC.
References:
- Crypto Wallet หัวใจสำคัญในการลงทุนคริปโตฯ