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Every cryptocurrency user is faced with the question of choosing a wallet. If earlier you had to choose from the TOP-5, now respected ratings offer at least 15, or even all 100 services.
The advantage of the newest available to users platforms in 2021 is that they do not push you to choose, but combine all the important functions. Modern developers have learned to create local clients with a maximum level of protection.
An example of such a project is the BitMarket Network Client. So far, this is only an alpha version of the wallet, but the obvious advantages of such a service are already visible: an open source code without hidden functions, access from any device, fast transactions and a friendly interface. Although it supports only Bitcoin and Litecoin now, in the near future it will be multi-currency. Also in future it will support the two-factor authentication.
By the way, right now this project is looking for qualified developers and users. On this stage it is very important to receive feedback and to involve specialists for developing a really high-level product.
Key features of modern services will help you decide in favor of one of them quickly.
- Non-custodial storage. Such crypto wallets do not store private keys, passwords, and user seed phrases, which indicates their security. Non-custodial storage shifts control over funds to its customers. But, the obvious advantage is that they provide users with the ability to exchange cryptocurrency for other crypto-assets.
- Openness. The program can contain open source or closed source code. The first one allows independent specialists to audit the service, and the second, as the name implies, assume your complete trust in the developer.
- Confidentiality. Indicators of a good level of user anonymity include rotation of btc-addresses, consolidation of crypto transactions, or support for address delivery.
- Convenient interface. Basic functionality will be more than enough for beginners. Advanced features often charge the interface and make interacting with it more difficult.
- Segwit format support. This is a must since the new bitcoin addresses allow transactions to be carried out much faster, as well as to carry out them with a commission that is approximately two times lower.
Now you can proceed directly to the assessment of wallets, which can be conditionally differentiated by their functionality.
Local
Wallets of this type can be created for a specific operating system or be cross-platform and not dependent on the OS.
Also, such local clients can be heavy or light. Heavy or decentralized ones involve the lack of trust in any particular node and download the full history of the blockchain. Light clients store part of the transactions, but the main history is located on remote servers. At the same time, keys, passwords, and seed-phrase are stored only on the client-side. Desktop wallets are considered by some to be safe as they exclude phishing. But, if you are not going to store large amounts, then it is more convenient to use online clients.
Mobile
Mobile crypto wallets are very convenient. They allow you to carry out transactions with bitcoins 24/7 without reference to the place. The main condition is an Internet connection. Fans of such services respond to arguments about the dangers of phishing that, compared with PCs, iOS, and Android, it is much more difficult to infect with viruses.
Mobile services are light clients that do not store complete transaction history and support Simple payment verification.
Hardware
They are not services, but devices that visually resemble a simple USB flash drive. This type of cryptocurrency storage is called "cold" (autonomous from the connection to the network). Users' private keys are stored in a secure area of ​​the microcontroller. These bitcoin wallets cost $ 50 and more. Logically, this type of storage is usually chosen for large amounts of bitcoins.
Multicurrency
Multicurrency wallets allow you to deposit, withdraw, and store various types of cryptocurrencies, like Bitcoin, Ethereum or Litecoin. The main disadvantage is that from a security point of view, different assets should be kept in different accounts. But, if the amounts for storage are small, then of course it is easier to accumulate and manage them from one place.
Such modern projects as BitMarket Network Client can be named a perfect example of a safe multicurrency wallet with an open access to the source code.
Online wallets
They are considered to be the most convenient resource for storing cryptocurrency. However, non-modern hot clients are susceptible to software attacks and phishing. You should be careful with them.
Conclusions
We used to keep our priorities in order to choose the most convenient cryptocurrency wallet. Oftentimes, convenience, and multitasking made you sacrifice security. But, in 2021, you can find the most secure modern wallets that meet all the requirements and take into account the shortcomings of their predecessors.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.