In addition to the different types of cryptocurrency wallets and the characteristics of each one, there are 6 criteria that you should look for in these wallets, which are:
1. Optimum use of the wallet
The most important factor as we have seen in choosing the right cryptocurrency wallet for you is your use of it.
If you want to trade cryptocurrencies, or want to buy and sell products, hard wallets are not practical at all.
The best option for you in this case is digital wallets that are quick to transact, while hard wallets are ideal for long-term investment or holding a huge amount of cryptocurrency.
2. Two-factor authentication
Another very important feature that may determine your choice of one digital wallet over another is the two-party authentication.
Where there is another security or firewall method, such as the wallet sending you a code on your phone number through which you can confirm access to your account.
This method is very effective because it secures you, even if someone finds out your wallet password.
3. Multi-signature support
Multi-signature is a great feature found in many cryptocurrency wallets, which is that several parties own their keys to the wallet, and transactions are only authenticated by signing more than one of them: according to their settings.
To imagine this, let's say that there is a small joint project between you and two friends of yours, and for some reason you decide to open a cryptocurrency wallet for this project.
But you did not want only one person to control the wallet and to be involved in making decisions and approving transactions…
Here, using a wallet that supports multi-signature would be an excellent solution, since no transaction is made until it has been authenticated by at least two of you.
This feature - as you have noticed - is suitable for large companies and projects managed by more than one person.
It may be practical in the case of couples, so if your need or use of cryptocurrency requires you to share the decision with one or more people, you will be tempted to choose a wallet that supports multi-signature.
4. Multiple currencies or one currency?
An important factor that will determine your choice of portfolio is the types of currencies you will own.
If you own one specific currency, your choice will be easy, and you will choose a good portfolio of wallets that support this currency.
If you intend to own more than one currency, choosing a separate wallet for each type of currency is not practical at all, and instead you will need to choose a wallet that supports many currencies to keep your currencies in one wallet.
5. QR Code Scanner
Mobile phone users often need a wallet that supports QR code.
This is because it will facilitate and speed up many processes for converting currencies and various transactions, so if you are one of them, you will definitely need a supportive wallet and a QR code generator.
6. Backup options
Surely you will need options for backup, or a security door to turn to in case of any problem with your wallet whether it is cold or hot, software or hard.
So be careful when choosing a wallet for your cryptocurrency to choose one with suitable backup options, in order to preserve your money in case of any problem with the wallet.
Cryptocurrencies are the oil of tomorrow, and many companies, institutions and even countries today desperately want to enter this world and seize the maximum amount of profits from it.
We have recently heard about giant companies entering the world of digital currencies, such as Facebook, which shocked the world with its intention to launch its Libra (Diem) currency.
Tesla is also investing billions in digital currencies, and even the giant PayPal has provided the ability to deal with many digital currencies, including Bitcoin.
Banks and countries now allow dealing and are also dealing with digital currencies, whether willing or forced, as the global economy and the Covid 19 pandemic have paved the world for a new era governed by digital currencies.
If you have any question or inquiry leave it to us in the comments, we will be happy to answer it as soon as possible.
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