You have decided to step into the exciting world of cryptocurrency. Good for you! Your first order of business should be to set up a cryptocurrency wallet of your choice. This is a simple process but there are many things you should consider before setting up your first cryptocurrency wallet. Some important questions need to be answered. Knowing what it is that you are trying to achieve will help you make the right decisions.
Are You a Hobbyist or an Investor?
Not everyone comes to Bitcoin or cryptocurrencies with the same mentality. Some people are merely curious. Others appreciate Bitcoin as a serious investment vehicle. Your own motivation needs to be considered before you decide which type of crypto wallet you need.
A Bitcoin hobbyist is someone that really just wants to learn a little bit more about the digital token. They have heard about it on the news and want to see what everything is about. A person in this boat might not spend more than $100 on Bitcoin over the course of their lifetime. Some of them will use it and go on to explore it farther, and some of them will lose interest.
A Bitcoin investor is someone that has seen the potential of growth in digital tokens. They are approaching these tokens just like stocks or the FOREX market. This type of individual will be putting a lot of money into cryptocurrencies, and they will probably be investing in more than one type of coin. As you can imagine, the wallet needs for this type of individual are much more complex.
So, ask yourself these questions to determine your own personal level of Bitcoin interest:
- How much money do I plan to spend on Bitcoin and other tokens?
- Will I want to spend my Bitcoin or will I want to hold it?
- Is Bitcoin something I will probably be interested in for a long time?
Once you have an answer to these questions you are in a position to choose a cryptocurrency wallet that will suit your needs.
Understanding the Different Types of Bitcoin Wallets
There are several types of Bitcoin wallets that are available. These include:
- A web wallet
- A paper wallet
- A hardware wallet
- A desktop wallet
- A brain wallet
All of these crypto wallets have one thing in common: each of them is meant to store Bitcoin or another type of cryptocurrency. But that is where the similarities start to end. Each wallet serves a common purpose but the manner in which it serves that purpose can be completely different from one wallet to the next.
Some wallets are meant for easy access. These wallets are generally very friendly to the beginner. Other wallets are made for the maximum amount of security. These are often preferred by those that have some Bitcoin experience. Some wallets are kept on your own computer. Some wallets are kept by a third-party. Still others are kept on a standalone device that can be carried around like a keychain.
Here again, there is a need for some questions:
- How often will I need to access my Bitcoin?
- Do I have a large amount of Bitcoin that I want to protect?
- Do I trust someone else to essentially be in charge of my wallet?
Reviews of Popular Bitcoin Wallets
Now you have some general idea of how you will be using a cryptocurrency wallet on a daily basis. The next step that you should take is to check out some of the reviews of Bitcoin wallets that are posted online. Guess what? You have come to the right place. Cryptoswede has a number of reviews on hardware wallets, and much general information on other types of wallets. We want to help you make an informed choice.
When you are reading reviews you will want to evaluate them in the context of the information that we have provided above. Take all of the questions into account. A good review should tell you how easy the wallet is to use, how easy it is to create, and how much, if anything, it costs. Yes, many cryptocurrency wallets are free. Others must be purchased. Some can even be moderately expensive.
The Hardware Wallet – Our Recommendation
Here at Cryptoswede we have a definite preference for hardware cryptocurrency wallets. These wallets are contained on a physical device that you can carry in your pocket. Hardware wallets provide the ultimate in security for owners of Bitcoin. No one can steal your coins unless they have access to your device.
Popular Hardware Wallets Include:
We have reviewed all of these wallets so that you can get an idea of how they work. Each of them has different features. Most can be had for around $99, and that is a small price to pay for your piece of mind.
- What Happens To Bitcoin When Crypto Whales Lose Access To Their Wallet?
- Just How Safe Is Bitcoin? Why The Crypto Critics Are Wrong
*** Here at CryptoSwede you will find information on Crypto Mining the different cryptocurrencies as well as the best cryptocurrency exchanges. You can trade or you can set up trading bots instead and then store the crypto on crypto wallets. Later, spend them using crypto debit cards!***