Top 10 Features of Crypto Wallet App — How to Choose the Best One?
Cryptocurrencies are not kept on computers or smartphones, as this would make them vulnerable. This is something that Satoshi Nakamoto, the creator of Bitcoin, never wanted to happen. The idea, which is currently working just fine, was to keep them as decentralized as possible.
That is why digital assets exclusively exist within the "blockchain environment," a decentralized database of records of the vast number of users that have access to all identical copies of it. For that reason, a crypto wallet is different from traditional wallets, as it is essentially a "connector" for accessing the blockchain. It is a mechanism that verifies that you can use the cipher stored in it to conduct operations.
For instance, if the registry shows that you have, let's say, one Bitcoin, the price of which changes daily, this amount will be displayed in your wallet on the screen. However, without a unique "key" to it, you will not be able to do operations with this one Bitcoin. Only you can use it to exchange for another cryptocurrency or send it to someone you choose.
After creating a crypto wallet, the system algorithmically generates an address for each sum of cryptocurrency that you need.
Every time you want to receive a particular transfer with the desired coin or token, you will have to specify a similar combination that your wallet will produce, which you share with those you want to. But remember, it is visible to everybody on the Internet since it is not secret information. However, even though anybody can see the public address, nobody will ever find out who the owner is unless they don't reveal themselves.
The cryptocurrency wallet is nothing more than a public and private keys collection. The first is not usually confidential, as it is used to identify senders and receivers of crypto transactions. However, a private key is precious, and you must do all it takes in order to keep it safe. Think of it as a PIN code to your debit card. Without it, you are not able to access it. Also, every single transaction is confirmed with the assistance of a private key.
Another critical factor when using a crypto wallet is the so-called seed phrase. It is a combination of 12 or 24 plain English keywords (such as bed, chair, sun, etc.)
These words are basically a backup plan for getting into your wallet if you forget or lose your generated passwords. When you first activate your personal wallet, it will generate these seed phrases for you immediately. Now, no one should see or hear the seed phrase. At the very least, you should write it down on paper and keep it in a secure spot. If you are able to memorize them and learn by heart, it will be even better.
Types of crypto wallets
They can be divided into custodial, non-custodial, hot, and cold.
In traditional finance, a custodian is an intermediary who keeps track of clients' assets and guarantees their protection. That, however, does not mean that the client or another entity acting on his behalf can't engage in direct management.
Things are even smoother in the world of cryptocurrencies. A custodial wallet is one that is registered with a third-party service, such as a cryptocurrency exchange. Such a wallet can be easily managed through the web interface, and the password can be quickly recovered, but the exchange still knows your identity and has access to your assets - after all, they are the one who holds the private key and not you. An intermediary's funds may be frozen by order of the court in unorthodox situations or lost due to their network being hacked. As a result, by opting for such a wallet, you sacrifice anonymity and security in exchange for ease. However, this does not imply that the solution is ineffective or completely unsafe.
You can utilize multiple currencies on the same exchange that takes care of your funds, and there may be better exchange rates and other valuable tools. Or, if you want to put a significant sum of money in your wallet, you can consider not storing all of your coins in one storage but choosing several solutions.
You are directly responsible for your non-custodial wallet. Only you have access to the private key and the seed phrase that has been algorithmically generated. On the one hand, hacking is far more complicated. However, if you forget both the access password and the seed phrase, nobody will be able to help you: the funds will remain in the blockchain. Nothing will be done with them, but access to them is lost forever. This is the option you should go with if you want to store cryptocurrency safely, or at least some part of them without interacting with a third entity,
Cold or hardware wallets are physical devices with a screen and buttons, such as hard drives or flash drives. This type of wallet "remains on your desk," entirely disconnected from the Internet most of the time. It only needs to be connected to a computer and network when a transaction is confirmed, giving hackers very little time to hack it. In addition, cold wallets offer complete protection, such as chosen PIN code, confirmation for each action, additional encryption, and more. In other words, if you consider your cryptos extremely valuable, that is precisely how they should be preserved.
Suppose you don't have too many crypto assets yet. If you consider them a not essential part of your savings, and you're not worried about losing them, you can simply start using hot wallets to explore this ecosystem. What is the implementation of such crypto wallets? You may download these software applications for free and install them on your computer or smartphone. Cybercriminals have a considerably more comprehensive range of attack options since they're constantly connected to the Internet, unlike cold wallets. The confidence principle applies here as well. It is always preferable to choose proven and open source solutions.
Key features to consider when choosing a crypto wallet
The crypto wallet you choose should meet your personal and investment needs. While doing so, it also must provide improved functionality, not extremely complicated interface, robust security, etc.
Please read the following section and see the top qualities and features that a particular crypto wallet software must consist of.
The first main point must be the authorization by the wallet user. Remember that cryptocurrencies are at the relatively early stage of their development process; therefore, many cybercriminals are looking for ways to steal some from individual users as well as from the most respected crypto brokers and exchanges. This factor makes most wallet apps vulnerable to various security breaches due to the popularity and growing price of many cryptocurrencies.
The crypto wallet app of your choice must offer the fastest transactions, making it also easy and more secure with the QR Code Scanner feature.
If a particular crypto wallet software includes a QR code scanner, it offers every client to scan addresses together with a public key simultaneously. As a result, you can make improved transfers with your crypto assets with only one click on your smartphone.
Instead of writing all of the lengthy characters of public keys individually, the app user is simply allowed to scan the QR code. Once that is done, and the information is retrieved via the scanner, it will be safe and secure to send and receive crypto assets to/from you wish to.
Variety of cryptocurrencies
Every solid wallet should offer as many cryptocurrencies as possible.
Most effective crypto wallets are constantly adding new coins and tokens to their list due to increasing demand by the community. This happens primarily during the bull market since all investors are actively looking for new projects that these assets represent to gain as many profits within the shortest period of time as possible.
Moreover, adding new assets occurs because many of these new projects are either prosperous and will make stable income for a long time "hodlers" or, on the other hand, for those who seek so-called "pump and dump" tokens. The value of these primarily useless assets fluctuates for a short period of time, showing lucrative percentage gains. Once the "hype" is over, these tokens lose their value, and some exchanges consider and eventually delist them.
Another reason to have as many coins under one roof is that not every investor wishes to diversify their portfolio among other wallets to hold cryptocurrencies.
Every modern crypto wallet must have super-fast push notifications, which are in this digital era a critical feature that allows customers to be informed or notified of crypto transactions at all times. Users of crypto wallets must always be in check about the price of their portfolio, whether it is the success or failure of any transactions and other processes.
This feature ensures that you receive real-time notifications for all transactions on your account.
Up-to-the-minute conversion rates
No cryptocurrency wallet app is sufficient without being able to calculate transaction fees based on rapidly changing conversion rates.
This is due to the fact that the crypto wallet app allows users to transact money in many methods, such as the same digital currency, alternative digital currencies, or both digital and fiat currencies. This will almost certainly require them to provide real-time information on the current currency value in real-time.
Efficient and fast blockchain solutions
The blockchain technology on which crypto wallets run is a game-changer. Every user can send and receive digital currency in a completely encrypted and quickest way through the wallet. As already mentioned, every customer can view their available balance together with the entire transaction history. This is the case since all completed transactions are transmitted to the blockchain network, and they cannot be removed, hidden, or manipulated. It is an excellent proof of every successfully finished transaction.
Developers must allow customers to back up their wallets to secure their funds from computer or software failures. While generating a backup on one's laptop storage or an SD card would be beneficial, not everyone will consider it efficient enough. Every serious developing team behind the crypto wallet should consider integrating secure online storage tools like Dropbox or Google Drive into the wallet.
However, always remember that keeping vital information, such as private keys to your crypto wallet, should have a minimal chance of being misused. Therefore, always consider writing it down several times on your paper and keep it wherever you feel it will be safe.
A payment gateway incorporated into a cryptocurrency wallet can make it easier for consumers to buy and sell their digital assets. A crypto payment gateway enables several merchants to accept Bitcoin or any other cryptocurrency payment. Most of these payment processors nowadays support the purchase and sale of various altcoins, including Ethereum, Litecoin, Dogecoin, and so on.
A mighty crypto wallet should be complex and have a variety of features, such as those in this article. Its success also depends on its ability to log out automatically. Why is this important? Because it significantly reduces the possibility of outsiders gaining access to a user's account. Wallets should log a specific user out after a particular period of inactivity or even when the app is closed.
Multiple operating system interoperability
Developers behind every wallet should strive to build various operating systems to appeal to the broadest number of potential users. They should implement a cross-platform mobile app development since it improves efficiency and gives them more options. These methods most likely lead to faster development times, reduced costs, rapid deployment, and continuous management capabilities.
How to choose the best crypto wallet?
When it comes to selecting a crypto wallet, newcomers are usually concerned. Cryptocurrencies require a significant commitment of time, energy, and capital, requiring the use of safe storage and management resources. The question of how to select the right cryptocurrency wallet is gaining traction as the popularity of cryptocurrency keeps rising to new levels.
Of course, choosing a crypto wallet for your crypto assets should be approached carefully. Here are a few examples of important considerations to make when selecting a cryptocurrency wallet.
The reputation of the wallet
First thing first, research a particular wallet's reputation. You'll need to put in a lot of time and effort to select the optimal wallet for your requirements and desires. If you're a novice looking for a crypto wallet, the best action plan is to stick with the well-known options. Referrals, worldwide recognition, qualifications, and awards for the organization are some of the vital signs that might demonstrate the reputation of a cryptocurrency wallet. Only after conducting an extensive study on the wallet's developers will you be able to identify the ideal crypto wallet for yourself.
That being said, verify the wallet's legitimacy by looking at the creator's credentials and the accomplishments he achieved in the crypto industry. It would be best if you also verified the wallet for any previous instances of security breaches. At the same time, you need to look into how the company dealt with security flaws and setbacks in the past.
The wallet's safety
When most people seek a crypto wallet, they generally look for the safest option. When selecting one, you should have confidence in protecting your funds. That’s why the security of your coins should be the top priority.
Consider using a wallet that guarantees the security of your funds against cyber criminals and hackers. Most importantly, you must have credible confirmation that your wallet is secure against various malicious attacks.
One may ask, how to choose which crypto wallet is the safest?
The EAL, or Evaluation Assurance Level, is a rating of the security of a crypto wallet. The EAL grade, which ranges from one to seven, is a great indicator that will quickly determine the most frequent question, "Which is the safest crypto wallet?" A wallet with an EAL score of 5 or higher would be considered very safe.
The next crucial factor is the availability of backup facilities. It's important to remember that the information in your cryptocurrency wallet is quite valuable. As a result, it is essential to ensure that the data in the wallet is adequately protected.
The backup mechanism will come in helpful for recovery, especially if you lose your wallet data or your gadget is damaged. Consequently, you should select an alternative with a reliable and effective backup system. Most importantly, you should make sure that the crypto wallet's backup procedure is simple and straightforward so you can gain access to your funds without problems.
Another important aspect in selecting a crypto wallet should be the app's focus on user experience. The functions of a crypto wallet should be convenient and straightforward for you to handle. You can't make the most of it if you don't have these tools. That being said, before you decide on a crypto wallet, take a closer look at what users have to say about them.
Check other users' reviews about their experience with a crypto wallet, as well as other features. Examine the crypto wallet's user interface. Make sure the crypto wallet has a simple, well-organized UI that you can easily explore. Aside from ease of usability, the wallet should make it much easier to integrate with other cryptocurrencies and financial platforms.
When you decide on utilizing a crypto wallet, consider diversification, it works effectively in the field of cryptos and the world of traditional money. If you have a lot of different digital assets, it's a good idea to keep them in different crypto wallets.
Remember that the seed phrase is everything to you when safeguarding your crypto assets. It's critical that it doesn't end up in the wrong hands. It must also never be forgotten or lost since that would mean that all assets will be lost forever without the chance of recovering them.
Take appropriate precautions when sending cryptos. Always double-check the addresses of the receiver, as well as the URLs and certificates of the websites. Verify the websites from which you obtain wallets. Every move should be examined, and remain careful since the crypto industry is full of scammers.
Definitely do not ignore the use of two-factor authentication. Suppose someone gains access to the account on a cryptocurrency exchange, for example, where your funds are located. In that case, they will be unable to validate the withdrawal of funds due to the effectiveness of 2FA.
Security is everything when it comes to crypto. Therefore, always take it seriously and do everything to store your assets as effectively as possible.
Separate addresses, save your information about wallets, put them in trustworthy services and mechanisms, and use cryptography software.