Having now been around for more than a decade, cryptocurrencies like Bitcoin and Etherium have become household names. Today, more people than ever before are turning to crypto as a way to make payments and store funds.
But when it comes to investing in cryptocurrency, storing it is just as important as buying or selling it. Choosing the right crypto wallet is crucial to safely and conveniently storing and accessing your Bitcoin or other crypto funds.
What Is A Crypto Wallet?
A cryptocurrency wallet is a program, service, or device that allows you to store cryptocurrency like Bitcoin. When someone acquires cryptocurrecny, they can store it in their crypto wallet until they need to use it for a transaction.
How Does A Crypto Wallet Work?
Wallets store private keys – very long hexademical codes that are known only by you and your wallet. In order for a transaction to take place, the key in your wallet must be matched with a public key in the blockchain. Until your keys are needed for a transaction, they will be stored safely in youe crypto wallet.
How Much Does A bitcoin wallet Cost?
Using a bitcoin e-wallet likely won’t cost you anything if you’re simply using it to store your crypto. However, whenever you complete a transaction using the funds in your e-wallet, the exchange or service will likely charge you a fee depending on what you are trying to do. This fee will vary depending on the service.
If you prefer an added layer of advanced security, then you should consider using a hardware wallet. While hardware wallets offer many security benefits that e-wallets just can’t, they will also cost a bit of money to purchase.
How Do You Cash Out Your Crypto E-Wallet?
Nowadays, the cryptocurrency trading process has been simplified, and many crypto trading services also give you the ability to cash out your cryptocurrency. For example, if you live in the US or certain parts of Europe, exchanges like Coinbase and Binance will allow you to withdraw your funds directly to your bank account.
Additionally, there are also peer-to-peer cash out services like LocalBitcoins that connect you to real people seeking to buy bitcoins in right now. How you choose to accept funds (bank transfer, cash deposit, cash etc.) is up to you, giving you a bit more flexibility when cashing out.
Need To Use A Crypto Wallet Today?
Now that you know what a crypto wallet is and how it works, let’s talk about which ones you can use right now. Here are our top 3 cryptocurrency wallets that you can use to store your crypto today!
Coinbase – The Best Crypto E-Wallet
Coinbase is one of the most popular crypto exchanges and is a great choice for anyone looking to quickly purchase, store, or transfer cryptocurrency like bitcoin. Coinbase not only makes it incredibly easy to exchange your bitcoin for other crypto currencies, but also makes it very easy to withdraw your crypto funds directly to your bank account.
Coinbase is a great crypto storage option that can conveniently be accessed from both your desktop and your mobile phone. And if you ever decide that you want to exchange the cryptocurrency in your e-wallet for another (from bitcoin to ethereum for example), you can do so within minutes.
Who Is Coinbase For?
Coinbase is great for everyone but is especially welcoming for beginners to crypto. Its simple interface, many features, and ease-of-use makes it perfect for anybody that is new to crypto trading and e-wallets.
What Separates Coinbase From The Pack?
Coinbase is incredibly convenient. Just link up your bank account, purchase your currency, and store it in your coinbase account. Coinbase has a massive user base and is the biggest crypto exchange online today.
Exodus – Versatility & Flexibility
Founded in 2015, Exodus is a crypto wallet/exchange that has quickly come to rival Coinbase as the most popular e-wallet around today.
Exodus features both desktop and mobile functionality and is compatible with several different kinds of platforms, making it a more versatile and flexible wallet than most others. Exodus is compatible with hardware ‘cold wallets’, allowing you to take advantage of the added security that a hardware wallet provides while also giving you the benefits of having a e-wallet that is accessible through both desktop and mobile.
Why Is Coinbase Superior To Exodus?
Exodus has many features that may appeal to crypto traders, but it also has been known to have security issues which may make it less appealing to those seeking to store serious funds. Additionally, the transaction fees when trading crypto can be quite high.
Who Is Exodus For?
Like Coinbase, Exodus is a great e-wallet for beginners and for those looking to store their crypto with minimum hassle. However, advanced users and serious crypto traders may find it lacking in certain features.
PayPal – The New Kid On The Block
The mainstream adoption of cryptocurrencies has been limited by the small number of platforms willing to let you buy, sell, and trade with them. In early 2021, PayPal, one of the most popular payment processors on the planet will begin handling cryptocurrency.
PayPal’s service will allow people to buy, hold, and transfer cryptocurrency directly from their PayPal account. By linking your bank account to your PayPal account, you will be able to convert crypto and withdraw it directly into your account. Additionally, storing your crypto in your PayPal account will give you the added benefit of allowing you to spend it at any of the 26 million+ merchants in PayPal’s network.
Is Storing Crypto In PayPal Safe?
PayPal has a long history as a secure place to stash funds and transfer money. There’s no need to worry about placing your crypto in the hands of PayPal, even if cryptocurrency isn’t something they specialize in.
When Is Crypto Support Coming To PayPal?
Cryptocurrency support is expected to come to PayPal by early to mid 2021 at the latest.
Which Cryptocurrencies Will PayPal Handle?
PayPal is expected to allow users to buy, trade, and sell bitcoin, ethereum, litecoin, and bitcoin cash.
Related Blog Posts
- Top 10 Affordable Bitcoin Competitors for Savvy Hodlers
- Are Double Spend Attacks the Bitcoin Kryptonite?
- Exploring Crypto Sentiment in 2021 [Survey]
- Innovative Cryptocurrencies and Their Unique Selling Points