Last Updated on Jan 27, 2022 by James W
Cryptocurrency used to be a niche asset, but it has become a legitimate force in the global economy in recent years. Many people have begun to invest or use crypto in their day-to-day lives, and more retailers are accepting currencies like Bitcoin as a standard method of payment. This surge in accessibility and visibility has made a lot of people curious about crypto and interested in purchasing some for themselves. However, if you’ve never purchased cryptocurrency before, it can be confusing to understand how the system works. Before you even make a purchase, you’ll need a crypto wallet, and there are quite a few different wallets to choose from. Keep reading if you want to learn more about the best crypto wallet for beginners.
Which cryptocurrency wallet is best for beginners?
With so many options to choose from, it can be difficult to find the best cryptocurrency wallet to suit your needs. There are different types of wallets, with some being online, some accessible via desktop, and some that are used through a mobile app. Online wallets are websites or apps that store your keys on a server. Software wallets are applications installed on your computer or smartphone, with keys stored on a local device or flash drive. Paper wallets are physically printed versions of your public and private keys, as well as QR codes for ease of use.
However, if you’re interested in security, your best option is to use a hardware wallet. A hardware wallet stores your keys on hardware specifically designed for crypto transactions and doesn’t leave your cryptocurrency vulnerable to bad actors who may be able to take down a server or hack an online wallet. Though hardware wallets have the reputation of being more difficult to use, this is no longer the case. They’ve become much easier to use and remain the safest option for storing your assets. If you need a recommendation, experts say the Ledger Nano X is the best option out there right now.
What is cryptocurrency and how does it work?
Though cryptocurrency is gaining an increasing amount of attention in the mainstream media, many people still don’t understand what it is or how it works. Basically, cryptocurrency is a type of digital currency that can be exchanged for goods and services and that uses an online ledger with cryptography that secures online transactions. An increasing number of businesses have begun to accept cryptocurrency as payment, though many still primarily treat crypto as a speculative asset.
Cryptocurrencies are supported by blockchain, which is a decentralized technology spread across many different computers worldwide and used to manage and store transactions. The attraction of this technology is its security and anonymity. Though blockchain was developed for use with cryptocurrency and is still primarily used for that purpose, many businesses are interested in finding other applications for blockchain technology.
Another crypto asset that has been garnering attention in the investment world is NFT. NFTs, or non-fungible tokens, have taken the art and media world by storm. Put simply, an NFT is a unique unit of data that can be purchased, and ownership can be verified using blockchain technology. Most NFTs are reproducible digital media like art, videos, and photos. With major brands, gaming companies, and even sports leagues getting in on the NFT market, their popularity seems unlikely to fade anytime soon.
There’s a lot to learn about cryptocurrency, and you should make sure you educate yourself before you invest. Crypto provides an innovative and secure way to invest and spend money, but you need to make sure you understand how to purchase and protect your crypto. Finding the right wallet is essential if you want to keep your assets safe and protect yourself from scams, hackers, and other malicious actors. While online wallets may seem more convenient, the best way to guard your cryptocurrency is to opt for a hardware wallet like the Ledger Nano X.