Cryptocurrency has been in the major market share for the past few years with the Bitcoin Boom of 2018 bringing in so many more cryptocurrency options. While there were a high number of various “altcoins”, which were digital currencies that became popular and eventually are traded for bitcoin (and even cash), you could literally make passive income from investing and trading, or mining. But how do you keep all of that secure? Well, that’s where cryptocurrency wallets come into play. They offer security for your cryptocurrency to keep it neatly in an organized space, but also in a secure manner (or they try to keep it secure at least).
What is a Cryptocurrency Wallet?
Most of the time, it’s a software application that allows you to store your digital currency. There are many options for this. You can download standalone programs that are available on your computer and provides an encrypted file for your cryptocurrency, or you can sometimes even find what’s called “hardware wallets” that are a USB device to store your coin codes offline. One other option is the online wallets that are popular, such as Coinbase (which is also a cryptocurrency exchange site), and other popular coin-based websites.
The online method is a general good way of starting out, but you eventually want to continuously backup and download your keys so your cryptocurrency can’t get stolen or hacked.
Why Crypto Wallets are Important
While some companies offer a specialized type of wallet, honestly, one of the best methods is to get the USB drive that stores your crypto keys, obviously. Then it’s all in your hands. But also it’s important that you realize that this means a lot of extra work, and when you’re wanting to exchange it, you often have to put it into an exchange in order to trade, and it’s about the equivalent of having extra paperwork.
What About Mining Wallets?
There are a ton of mining websites out there, and even some that allow mining on their own servers if you don’t have a miner. This is known as cloud mining. So what is this and what does it mean? It means you have services that are mining your cryptocurrency for you, and are making passive earnings, which are stored in your wallet online on their servers.
These are in theory somewhat secure, but as a general practice, it’s important that you know you need to meet a minimum amount before you can withdraw the currency and put them into your own personal wallets. Sounds great right? Well, it’s not if that site gets hacked and you lose precious coin that you’ve been waiting for to accumulate. They do offer affordable solutions sometimes, though their prices can change at any time.
No matter what type of wallet you choose (some are perfectly find with their own faucet wallets and just make daily accumulative gains as a hobby while getting perks from things like referrals, daily claim bonuses, and more), it’s important that you have some way to secure your cryptocurrency, and the best way to do it is usually yourself.
There are some exchanges that are offering to increase your security, like https://rubix.io/, and allow trading options that are functional, like the first social media exchange platform Rubix.io. They are one of the first possible ways in the making that you can share coin with friends, family, and partners on Facebook and other social media platforms, while offering an ultra-secure wallet option.