Did you know that according to Markets and Markets, the size of the cryptocurrency market is expected to be valued at $2.2 billion by 2026? This growth would be with a compounded annual growth rate of 7.1%.
Considering how quickly the cryptocurrency market is growing, many cryptocurrency-related products are emerging. One of these is crypto wallets.
Are you considering getting a crypto wallet? In this case, it’s vital that you do your research first.
However, if you need help deciding which features to look for, you might feel stressed about making this critical decision.
Fortunately, this article will review the key features all top crypto wallets must have. Finally, you can get the right crypto wallet and be well on your way to becoming the next prominent cryptocurrency investor.
Not Elon Musk or Winklevoss twins big, but you’ll still be able to use a wallet properly when storing your digital assets. Read on to learn more.
What Is A Crypto Wallet?
Before we go into the key features that all top crypto wallets need, we’ll answer the question, “What is a crypto wallet?” With a crypto wallet, you can easily track your crypto assets, seeing them all in one place.
Having all of your cryptoassets in one place can be helpful when making decisions, for example, about which cryptocurrencies to trade or spend.
It’s like opening up a standard wallet or looking at your bank account balance online before making a financial decision.
But in addition to making it easier to know how much you have of each crypto asset, you’ll also have a more manageable time making cryptocurrency transactions.
It’s important to note that there are different types of cryptocurrency wallets.
Depending on how much wallet security you want, how easy you want the wallet to be to use, and other preferences you might have, one of these wallet types might be better for you than the others.
One type of cryptocurrency wallet is the hot wallet. Hot wallets connect actively to the Internet. On the one hand, its connection to the Internet makes carrying out cryptocurrency transactions much more manageable.
On the other hand, these wallets are less secure. There are two types of hot wallets. One is the desktop wallet, and the other is the mobile wallet.
Cold wallets are cryptocurrency wallets that are not Internet-connected. On the one hand, this means the wallet is less likely to be hacked. On the other hand, this means that physically storing your cryptocurrency assets is necessary.
Some examples of cold wallets include paper wallets and hardware wallets.
The last type of crypto wallet you might consider getting is the custodial wallet. When you use this type of wallet, you have a digital wallet but do not have the keys to access it. Instead, there’s a service provider that has access to them.
You can spend and access your assets with this type of wallet. However, you do not have complete control. There’s the risk that the service provider could get in the way of you transferring funds or falling victim to scams.
Key Features All Top Crypto Wallets Need To Have
Now that we’ve reviewed the different types of crypto wallets, we’ll review the key features they should have. These include a good reputation, the right amount of security, being able to have access to your private keys, and more.
A Good Reputation
You need a trustworthy crypto wallet provider for digital assets like cryptocurrencies. After all, there are many crypto scams and hackers out there. Therefore, choosing a wallet provider with a good reputation will protect your assets better.
To determine whether the cryptocurrency wallet has a good reputation, check out what trustworthy cryptocurrency websites say about them. Additionally, look at reviews people who have used the wallet have posted.
One of the most important features when choosing a cryptocurrency wallet is security. This is especially true if you want to use a hot wallet to ensure the internet connection is secure. Something to look for in terms of security is the sign-in process. The wallet should require you to sign in with a PIN, facial recognition, or fingerprint recognition.
Having Access To Your Private Keys
Even though a custodial wallet can be easier to use at times, there’s a problem with getting this type of wallet. You won’t have access to your private keys when using a custodial wallet. Why does this matter?
That’s simple. If you do not have access to your keys, you will not have control over your cryptocurrency assets. Someone could easily access your cryptocurrency if they were to have access to your private keys. Additionally, if the host goes bankrupt, they could hold onto your cryptocurrency assets. Another issue if you don’t have access to your keys yourself is that you have to ask the “custodian” of your crypto assets whenever you want to use them. Again, this process could delay the action you want to complete.
It’s worth getting a wallet that has backup features. After all, when you have the key to access your crypto wallet, you might do your own backup by writing down the key. After this, you would store the written-down information somewhere safe. However, this can be a bit of an issue. For one thing, you could end up losing said piece of paper. Second, if you have more than one type of cryptocurrency, you’ll have to have more than one key. It can be stressful to keep track of so many keys.
You can save your keys if you have a crypto wallet with backup features. They’ll be stored in the cloud (Google or App).When a wallet offers this feature, you aren’t just able to save your crypto wallet key or keys. It will also automatically save any other keys generated when you create another wallet. It’s important to note that the crypto wallet will store these keys in an encrypted form. Additionally, you’ll create a password you use to access them. This process is much easier than typing every key for every cryptocurrency or crypto wallet. However, remember that you can keep the paper version if you feel more comfortable having your key yourself.
The Multi-Sig Option
A feature that might interest you is the multisig option. When you have a multisig wallet, this means you have a cryptocurrency wallet that requires at least two people to approve a transaction before it goes through. There are different options you have within the multisig option.
First, you can decide how many people you want as participants in the multisig wallet. Second, you can decide what number of these participants you wish to authorize transactions. For example, let’s say you have five people you want to have as participants-This could include your parents, a sibling, and three close friends.
Then, set up the wallet so that two of them must authorize a transaction before it goes through. If you were to choose this type of multisig option, this would be a “2 of 5 multisig wallets.” If you’re interested in greater security, look for a wallet with the multisig option.
You may have noticed that many are free if you’ve been researching various cryptocurrency wallet options. However, you do have to pay for some of them-This is often the case when it comes to hardware wallets. If you have a large amount of cryptocurrency, plan on having a large amount, or think you’ll be holding onto your cryptocurrency assets for quite a while, it might be worthwhile to get a hardware wallet. Therefore, paying for a hardware wallet is a good idea in this case.
When you use a cryptocurrency wallet, it should be easy to use. Otherwise, you’ll feel frustrated whenever you conduct a cryptocurrency transaction. So if you decide that you’re going to get a desktop or mobile wallet, ensure that it is user-friendly.
Not sure how to find out? You can start by looking at reviews to see whether other users have found the wallets you’re considering easy to use.
Additional Useful Features
Consider looking for additional valuable features when choosing your top crypto wallet. These include the elements of personal notes, display currency, and unlimited wallet creation. We’ll review each of these in detail now so you can decide if they’re crypto wallet features you want.
Do you want to be able to keep track of the details related to the different cryptocurrency trades and other types of actions you take when using your crypto wallet? In this case, the personal notes feature might be helpful to you.
When a crypto wallet has this feature, you can add text when you transact. These details can include; where, what, how much, and to whom you sent cryptocurrency assets.
Many wallets allow you to toggle what type of currency is on display. This way, you can see your cryptocurrency displayed as the cryptocurrency amount itself or how much it would be worth in your local currency.
It can be helpful to view your cryptocurrency assets, especially if you plan on switching between EUR, GBR, and USD.
Unlimited Wallet Creation
If you want to organize your wallet, so it’s as easy to use as possible, look for one that allows you to create as many wallets as you wish. With the unlimited wallet creation feature, this is possible.
Why Choose ByteWallet?
From the makers of the Byte Federal cryptocurrency ATMs, ByteWallet is the best mobile wallet to store your digital assets.
ByteWallet is a non-custodial wallet. You own your keys; you own your crypto. This is how decentralized money is supposed to be held.
With our convenient ByteWallet, users can store, send, and receive crypto safely and efficiently, manage their ByteFederal account, find the nearest Bitcoin ATM location, and more.
Need More Information
Now that you’ve learned about the key features all top crypto wallets should have, you might need more information. For example, you may want to learn more about the top crypto wallets available or to decide whether a hot, cold, or custodial wallet is right for you.
At Byte Federal, we’re happy to help. CONTACT US to learn more.