With the exponential rise in the popularity of the Cryptocurrency markets, the safety requirements have also increased.
Crypto, being an unregulated market, lots of investors do not feel safe holding their cryptocurrencies with the exchanges.
There have been quite a few incidents of exchanges getting hacked, as well as a large number of crypto portfolios getting hacked and seized.
A crypto wallet, compared to an exchange, is a much more secure way to store your cryptocurrencies.
Without using a crypto wallet, it is very hard for investors to directly own and control their crypto assets. Most importantly, cryptocurrencies stored in a wallet are resistant to outside control and censorship.
However, numerous different Crypto wallets are available in the market, which creates confusion among investors on which wallet to choose. So in this article, we discuss 8 key features that a good Crypto wallet must have.
What Are Crypto Wallets?
Before jumping on to the features, you should be familiar with the various types of Crypto Wallets.
Based on the type of ownership, a crypto wallet can either be custodial or non-custodial. In a custodial wallet, the wallet is registered with a third party like a crypto exchange and they hold the cryptocurrencies for you.
This means that they have access to your crypto assets and hold the private key and the user’s identification details.
Whereas, in a non-custodial wallet, you have exclusive access to your crypto assets and your private key. The only catch is if you lose your private key, you will lose your cryptocurrencies.
Non-custodial wallets are recommended for those who are highly concerned about the safety of crypto wallets and exchanges. Then there are hot and cold wallets.
Cold wallets are physical wallets and they are great for those who do not want online intervention in their assets and are risk-averse. Some examples of cold wallets are – Ledger, SecuX, SafePal, etc.
Hot wallets are online software applications that you can use to store your cryptocurrencies but they are more vulnerable than cold wallets. Some popular hot wallets are – Trust Wallet, Crypto.com, Coinbase, etc.
8 Essential Features To Consider When Choosing a Crypto Wallet
1. Fast and Efficient Transactions
Crypto wallets work on blockchain technology. The technology is so efficient that users can send and receive cryptocurrencies at fast speeds and in a completely encrypted process.
So, a wallet that runs on blockchain technology is a good choice as blockchain transactions are secure and they can neither be removed nor manipulated in any way.
2. Supports Multiple Cryptocurrencies
A good crypto wallet must have the facility to store as many types of cryptocurrencies as possible. Users own various types of different tokens and coins and want to store their assets in crypto wallets.
So, users should choose a wallet that supports the maximum types of cryptocurrencies.
It is an important feature for those investors who have diversified portfolios containing different types of cryptocurrencies.
3. Safety and Security features
The most crucial thing to look for in a crypto wallet is, of course, its security features. A wallet must be secure enough so that the user can be confident in storing their assets in it.
Choose a wallet that can assure protection against intruders and hackers. Always make sure that your wallet has 2-factor authentication.
You can also look at a Crypto wallet’s EAL (Evaluation Assurance Level) Rating before storing your assets. The EAL rating should be as high as possible but not less than 5.
4. Easy User Interface
Every user wants an easy user interface in any application and a hassle-free experience. A crypto wallet should also provide a good user experience.
You should always try to pick a wallet that is not too complicated to use.
In this matter, you can look into the reviews of other users for a better understanding of the user experience that it provides. The wallet should also make connections between various platforms easier.
5. Real-time Conversion Rates
Transaction fees in a crypto wallet are calculated based on the current conversion rates. So, a crypto wallet must be efficient in providing real-time conversion rates and calculating them with efficiency.
The wallet should be able to facilitate seamless transactions. This feature is a must because using crypto wallets involves transactions using various modes of currencies and requires constant conversion between currencies.
Every good crypto wallet must have the feature of giving the user prompt notifications regarding every transaction and other information relevant to the user.
This is also an important security measure that every wallet should have. Users must always be aware of any unauthorized transaction which may occur in their portfolio.
7. Automated Logging-out
Automated logging out is a great feature to have in a crypto wallet. Most of the users in their daily usage often forget to log out of their accounts.
This can create a high risk for malicious activity in user wallets, and their assets may be compromised. If the account gets automatically logged out, it ensures the safety and security of the user’s assets.
8. Cross-platform Operatability
A modern crypto wallet should be able to provide the user with the flexibility of operation across different platforms. It should be accessible across different operating systems.
This ensures that users can easily access their assets using any available platform. It also makes development easier and faster and reduces costs.
To Sum Up
These are the main features that you must consider while choosing a crypto wallet for yourself. The bottom line is that you should prioritize the safety and security features.
Those are the most important ones. Apart from that, you should choose the wallet which has the maximum useful features.