Best Cryptocurrency Apps For June 2021
Cryptocurrency wallets are a safe way to store your digital assets, but you really only need them if you plan to amass large amounts of crypto assets or want to spend your crypto easily. The cryptocurrency you own is protected by public and private keys – much like your PIN and bank account number. You use a wallet to store your encrypted keys and keep them safe.
There are two types of wallet:
- Cold wallet. This is usually material that is kept offline, making it extremely difficult to hack. Cold wallets cost between $ 50 and $ 150 and are often considered the safest way to store digital currencies.
- Warm wallet. Active wallets are connected to the internet, so they are not as secure. However, like normal wallets, they are a handy place to hold small amounts of crypto that you may want to use.
Until recently, when cryptocurrency became more mainstream, wallets were much more needed. In the beginning, several cryptocurrency exchanges fell victim to hacks. And at this point, if your crypto was stolen, there was no way to get it back. So, long-term crypto enthusiasts use exchanges only for trading and store their coins in their own wallets.
However, nowadays it is much safer to leave your coins at the stock exchange or brokerage house where you bought them. The best cryptocurrency app will have excellent security and store your assets offline in a cold room. Several companies also insure the crypto assets they hold.
Additionally, some platforms do not give you the ability to move your digital currencies. For example, the crypto platforms offered by Robinhood or SoFi Active Investing are designed for investment purposes. So if you bought Bitcoin with them, you won’t be able to withdraw it from your account.
In contrast, exchanges like Coinbase and Gemini have built-in wallets. Like any good exchange, each allows you to transfer your currency to an external wallet, although you may have to pay a withdrawal fee. You may need to find a wallet that is compatible with your exchange.
Think about what you plan to do with your cryptocurrencies before you buy them. If you are investing for the long term and want to buy and hold, you might be happy to hand over your crypto keys to the exchange or brokerage. But if you plan to trade regularly or want to spend your coins, a wallet may make sense. In this case, you will need to look for the best cryptocurrency trading app that will easily connect to your wallet.