Why do I need a multi-currency wallet?
Altcoins are gaining significant popularity. This is evidenced by the growth rate of altcoin market capitalization, which has long surpassed that of bitcoin. This is reflected in the steadily declining index of dominance of the first cryptocurrency. There are a lot of altcoins, and the capitalization of some of them has already exceeded $ 1 billion. Many altcoins are interesting not only because of the technology and idea that underlie it, but also represent attractive objects for portfolio investment. A logical question arises – where is the best place to store various digital assets?
Why is a separate wallet for each altcoin – it is inconvenient?
Some users set a separate wallet for each cryptocurrency (for example, Electrum-Dash or Ethereum Wallet). This approach, of course, provides a safe way to store digital currencies, since each of these wallets gives you the opportunity to control the private key. If you store the latter in a secure place (for example, write it on paper and / or save it to a flash device that is always offline), you can be 100% sure of the safety of digital savings. However, this method has some disadvantages. Firstly, many scattered wallets are inconvenient. Secondly, for each of them it is necessary to save a unique key seed phrase (which will be the private key). How many digital currencies – so many unique phrases. If you lose one of them, then the entire digital currency from the corresponding wallet will be lost.
Why should not you store large amounts on exchanges?
Many crypto enthusiasts prefer to store altcoins on exchanges. This is very convenient, as modern trading floors support dozens and even hundreds of different altcoins. However, this approach has many significant drawbacks, as the user has to trust funds to a third party. Most cryptocurrency exchanges are centralized, completely uninsured against hacking, and are also regularly subjected to DDoS attacks. All this jeopardizes the safety of funds. Therefore, users who do not trade in large volumes on crypto-exchanges should consider other options for the long-term storage of crypto assets, where control over the private key is provided and, accordingly, full control over digital assets.
As with exchanges, this option is hardly reliable, since it also involves third-party control of funds. On the other hand, online wallets often support many popular cryptocurrencies and even allow transactions with low fees. However, this, perhaps, the advantages of this method of storing altcoins end. Among the many online wallets for digital currencies, one can distinguish the Cryptonator service, or, for example, HolyTransaction, popular in the Russian segment of the network.
With the increase in the number of smartphones, many different mobile wallet services have appeared, both for Android and iOS. Many cryptocurrency online services also have a mobile version (for example, the aforementioned Cryptonator). Some mobile wallets are highly reliable (since they make it possible to save the seed phrase) and an intuitive interface. Such applications include, for example, Coinomi mobile wallet. The latest version of the wallet offers to save the passphrase at the first launch of the application. Coinomi integrates the popular ShapeShift exchanger and the application currently supports about 60 altcoins.
Crypto-wallets as browser extensions
In this segment, Jaxx, which exists in the form of extensions for the Chrome and Firefox browsers, has gained considerable popularity. This wallet is characterized by ease of use, minimal design and flexibility of settings. However, most importantly, it makes it possible to control the private key in the form of a seed phrase. The project team is constantly adding support for new altcoins. For each of the digital currencies supported by the wallet, there is no need to export and save the private key – it is enough to backup only one seed-phrase, consisting of 12 words. Using this phrase, you can instantly restore all wallets, as well as the balances available on them.
Multicurrency wallets installed on a computer are a good tool for storing crypto assets. Among them, Exodus can be distinguished, which features an intuitive and beautiful interface, control over private keys, an integrated ShapeShift exchange platform and support for many altcoins. As for the Jaxx wallet, it also has a desktop version available for Windows, OS X, and Linux.
This type of cryptocurrency wallet can be considered the most reliable, since such devices provide the maximum safe, “cold storage “digital assets” in a secure, isolated environment. This is perhaps the best way for long-term storage of significant amounts of funds. A private key that is used to sign transactions is securely built into the hardware crypto wallet. Among the most popular wallets of this type are Ledger Nano S, Trezor and KeepKey. Each of them supports several of the most popular altcoins, including ETH, LTC, DASH, etc.