However, if you use them incorrectly, investors can lose their own funds very quickly. You should definitely keep an offline wallet in a secret location and use strong passwords and double protection for online wallets.

Facts about the security of a crypto wallet:

•     Cryptocurrency wallets are very secure when used correctly.
•     There are advantages and disadvantages (explained in the text below)
•     If you send your coins to the wrong wallet address, they are gone forever
•     Wallets can be hacked or lost

Transfer money securely with a cryptocurrency wallet

Wallets can also be secured with passwords. As with classic eWallets, these guarantee that your own money is kept safe. When transferring payments, however, it is not only important to transfer money securely, but also correctly. Basically, the transaction process is intuitive and easy to handle. The cryptocurrencies only need to be transferred to the correct address. However, caution is required in this process! For example, there is a different address for each cryptocurrency. If you mix up the addresses or make a mistake, the cryptocurrencies can be lost forever.

A distinction must therefore be made between the public key and the private key of a crypto wallet. While the public key is there so that other people can pay into one's own wallet, the private key is there so that one's own coins can also be spent. Wallet owners must therefore always make sure that they keep the private key safe and can issue the public key. Swapping the keys is extremely dangerous. Before each transaction, you should therefore check whether the correct key is being passed on. You should also always have a safe place to store the private key. If this key code is lost, you can no longer access your cryptocurrencies.

What is a cryptocurrency wallet useful for?

A wallet allows you to manage your cryptocurrencies. Each wallet has the following functions:

•     Storage of coins and tokens. These can be stored in a protected and secure way. Storage is completely free of charge.
•     Sending coins and tokens to other participants. The participants can be any other wallet or exchange.
•     Receipt of coins and tokens by other participants. The cryptocurrencies are sent to you by other wallets.

Which wallet is right for me?

For holding cryptocurrencies for the long term, a hardware wallet is recommended from my experience. It is very safe and you can secure this in the real world once again! It is also more suitable for larger investments.

For traders who exchange coins and tokens daily, on the other hand, an online (hot) wallet is recommended. A hot storage wallet is completely free and you can send and receive your coins online in seconds.

Does trading also work without a wallet?

Trading with https://exness-ar.com/tnzyl-exness/ can also work without a wallet! For example, it is possible to trade cryptocurrencies via CFD - also called contact for difference - (unsafe investment) with an online broker or to store the coins directly with an exchange. I recommend the providers eToro, BDSwiss and IQ Option for trading without a wallet. With these providers, you can buy a cryptocurrency directly without a wallet with just a few clicks.

My conclusion on the cryptocurrency wallet

A wallet is a sensible investment to store and send coins and tokens. Among the wallets there are also different designs, which I have explained above. It is important to find a suitable online wallet for yourself and your coins. My personal favourite is the Ledger Nano X. The cost of this physical wallet is around 100 euros. My coins are absolutely safe on this hardware wallet.