Let’s look at some interesting statistics for us to gauge the general direction of where the world is heading to. In 2018, research done by Hootsuite and We Are Social revealed that more than four billion users could access the internet by mid-2018. That’s a seven percent year-on-year increase. As a result of this, there was a network effect and the number of social media users shot 13 percent year-on-year to 3.2 billion whereas the number of mobile phone users jumped to 5.2 billion during the same period. This is super interesting and just goes on to show how digital and global the world is becoming.
Therefore, in a digital world, it makes sense that there is a fitting option that allows for the free and autonomous transfer of funds without third parties. In every system, whenever third parties, better known as brokers or middlemen are cut off, the consumer ends up benefiting. It has been demonstrated beyond reasonable doubt that blockchain effectively cuts out these choke holding and expensive middlemen.
At the center of this blockchain revolution are wallets. Digital wallet as a piece of code coupled with the open source nature of the space is meant to serve the users in the most secure and transparent mode. Meanwhile, users while staying aware of many choices at their disposal, shouldn’t ignore the due diligence that will either fortify their digital asset garrison or expose them to malicious, weakness hunting black hats searching for sieves in wallets.
Today, I’ll take you through the main types of wallets and let you know the advantages of each. Note that the choice of a wallet largely depends on your intentions. As I break down these wallets, I’m also going to make one big assumption, that you have a stash of coins and are looking for the best option that secures your properties.
Cryptocurrency wallets, contrary to popular assumptions don’t necessarily store your coin in the way real life wallets work. Instead, you get to create a public address for sending and receiving crypto with others on the blockchain. Simultaneously, you have your own private keys to control your digital assets. As a matter of fact, the coin is always on the blockchain only that control over their fate lies with the possessor of private keys.
Types of cryptocurrency wallets
Cryptocurrency wallets come in different specifications depending on user needs. Nonetheless, a few distinct examples have become apparent over the years. These will be the criteria for the classification of cryptocurrency wallets.
The broadest form of classification is to class cryptocurrency wallets either as hot wallets or cold wallets. Hot wallets are those connected to the internet while cold wallets are on hard drives that can be plugged into a computer.
An online wallet offers services on the cloud similar to a website. In essence, you can access the service from any desktop provided you have internet access. There are even exchange platforms that offer wallet services, though mostly as a secondary function. Some web-based wallets include: Binance, Quadriga CX, CoinBase, Cryptopia and every other wallet offered by an exchange platform
- The convenience of access and use.
- Less secure than hardware wallets since you have to trust the wallet service provider.
- There can be limits to the amount of coin you can trade.
Mobile wallets come in the form of phone apps. They are great because of portability and you can use it to make payments at remote locations. Mobile wallets are generally safer than online wallets unless you happen to actually lose your phone or a separate security breach happens. Example include: Jaxx, Copay, Bitcoin Ox
- Convenience in use and portability.
- Ability to use phone camera scan QR codes to quickly and easily send and receive BTC.
- There is still the likelihood of security breaches on your phone.
- The mobile wallets still need high-speed internet to function meaning that their portability is not necessarily an advantage.
Hardware wallets come with a reputation for robust security. They rely on hardware encryption to store, send and receive the digital currencies. There a few companies that have a distinction in this field and include Trezor and Ledger Nano S.
- The hardware wallets literally can’t be hacked and offer unparalleled security.
- A completely decentralized experience since wallet security is literally in your hands.
- Not as convenient as online storage since the process of installing the hardware drive is cumbersome.
- A complex technical process to recover private keys in case of loss.
Desktop wallets rely on a user making a download of the wallet software and installing it on their desktop. Some desktop wallets even facilitate trading without an exchange to make the user experience more wholesome. Often time, they are multi-currency. Example include: Exodus, Bitcoin core, Multibit
- Convenient cryptocurrency use as the desktop wallet is at your work station.
- Highly decentralized experience.
- The software takes storage space on your PC.
- Compatibility issues with the software itself can frustrate a user.
Why Bitcoin Ox
Luckily, the decision by wallet providers to launch products that prioritize functionality and security while trying to make interfaces as comfortable as possible points to evolution and incorporation of learned lessons. Exemplifying this transitioning is a web-based wallet, Bitcoin Ox. It is free as it comes but there are a lot of benefits it tags along with. Here is what you get:
- Bitcoin Ox offers full access to xpub, xpriv, seed, and addresses. This variety boosts your operational capabilities making life easier.
- Easy to use compete with fiat currency conversion rates saving you time.
- Supports Bitcoin Improvement Proposal (BIP) 39 for Mnemonic code. This means the wallet is compatible, Heuristic Deterministic and you can easily recover your wallet thanks to the passphrases which you can back up.
- There is QR support meaning you can easily send or receive payments without copy pasting or manually writing addresses.
- Excellent support which includes multilingual capabilities. Add that to their track spending feature from a watch-only account and supervision has been simplified.
- You can support multi-crypto wallets using one or multiple seeds without hustle.
- The company is planning to release a convenient user app that will have the benefit of convenience for a user.
- Supports GAP limits suitable for big wallets
Crypto is clearly a diverse, multi-discipline field where options are available depending on the end user needs. Bitcoin Ox is safe, multi-currency and support is unparalleled. It has never been hacked, allows full control of private keys and with a QR code, you can spend your coins anywhere and whenever you feel like.
Bitcoin OX offers unparalleled user convenience in the blockchain space. Not only is it secure but also convenient. In the wallet space, it seems to be the case that you have to trade for either and not both. Accordingly, Bitcoin OX rises above the rest for this combination of possibilities.