CRYPTOCURRENCY WALLETS GUIDE


What is a wallet and why do you need one?

There are multiple choices of wallets available with varying difficulty of ease of use, features and security levels.

A wallet is simply used to store your Cryptocurrency coins safely off of exchanges and in your full control. Without a wallet you can’t store, spend or receive coins. A wallet is your online bank account.

You have a public address (Bank account number) to send and receive funds and a private key, which is basically your password to access your wallet.

Why not just keep your funds on exchanges?

Exchanges can and have been hacked in the past, so if you have at least $1000 dollars it may be time to get a hard wallet or at least get your money off of the exchanges.

Exchanges that have been hacked in the past:

  1. Mt Gox exchange.

    At the time it was the biggest Bitcoin exchange in the world. It wasn’t just hacked once, but twice! The first time was back in 2011 where a hacker managed to enter and steal 2609 Bitcoins.

    The second attack came in 2014 and managed to destroy Mt. Gox as a business and a lot of people lost all their Bitcoin stored on there. Over 750,000 Bitcoins were stolen this time. When you consider there less than 17 million Bitcoins in circulating supply (many millions are considered lost on old hard drives) 750,000 is a large amount of the entire Bitcoin market supply.

  2. Bitfloor exchange

    This time only 24,000 Bitcoin were stolen and the exchange actually covered the loss to their clients.

    Sadly it was forced to close its doors.

  3. Poloniex exchange

    Poloniex was at one time one of the largest exchanges where you can trade many altcoins and they have a very neat Bitcoin lending platform built in where you can lend your Bitcoin out for a nice daily return.

    Although we do not know the exact amount stolen, it would have been a lot and thankfully their customers were refunded their losses in full by Poloniex temporarily raising their trading fees to help repay customers and they also paid out of their own pockets to speed up the repayment process.

    They did however suspend their platform for a while meaning your funds were stuck in limbo and you were unable to trade.

  4. Bitfinex exchange.

    This exchange is still running and we use it ourselves to buy altcoins.

    In 2016 120,000 Bitcoin was stolen.

    Bitfinex slowly refunded its customers their losses over time.

  5. Coincheck Exchange.

    Coincheck is one of the largest exchanges in Japan. The hackers stole 523 NeEMcoins, which at the time was worth $534 Million. The hackers only managed to access NEM coins and Coincheck is looking to refund all customers.

How to choose which wallet is best for you?

Different wallets store different altcoins, so you may need multiple wallets if you intend to buy and store a lot of coins.

You also need to work out how you might want to use your wallets. For example Mobile wallets (wallets on your phone) are not as secure, but are good for small transactions and ease of use.

Most secure wallets in order are:

  1. Hard wallets. (Not connected to the internet and the best choice)
  2. Paper wallets
  3. Desk top/mobile wallets. (Easier to learn and use, remember to have a VPN and also good anti-virus software.)
Mobile wallets
Desktop wallets
Hard wallets
Paper Wallets
Mobile wallets

Mobile wallets

These are wallets (apps) that you can download directly onto your phone. Some wallets work with android and apple phones, some only work on one of these options.


It is important to use these mobile wallets for storing very small amounts of coins on, as they are very susceptible to hacking and can be used only from your phone, so if your phone is lost or stolen it can be difficult to retrieve.

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Desktop wallets

DESKTOP WALLETS GUIDE

What is a desktop wallet?


A desktop wallet is downloaded directly onto your PC or laptop. Once downloaded your desktop wallet will only be accessible from the computer you downloaded it onto. Desktop wallets have a good security level (less than hard wallets) but they can be hacked by a virus.

Hard wallets

HARD WALLETS GUIDE

What are hard wallets?


Hardware wallets are the most secure method to store your cryptocurrencies.


Hardware wallets store your private keys on them and although they make transactions online, they are stored offline at all times making them very secure.


Hardware wallets can store multiple different cryptocurrencies on them.


To use them you simply plug them into your computer and put your pin in. They are a little more complicated to use, but well worth the effort!

Paper Wallets

PAPER WALLETS GUIDE

What is a crypto paper wallet?


Paper wallets are very easy to use and provide a very high level of security.


A paper wallet is simply a piece of paper that you print out and on it is stored your public and private address keys and QR code.


How do you move crypto onto or off your paper wallet?


To move crypto onto your paper wallet simply copy your public address on the paper and send to that address.


To move crypto off of your paper wallet simply scan your QR code on the paper or enter your private key.


Do not forget to clear your browser after printing and store your paper somewhere very secure and secret.


Further information on paper wallets:


Thank you to https://bitcoinpaperwallet.com for supplying this guide below:

PAPER WALLET GENERATORS.

Below are some websites that allow you to create a crypto paper wallet:

  1. Bitaddress.


    Website:

    https://www.bitaddress.org/bitaddress.org

    To use this site simple click the link above and then move your computer mouse around till you have generated a 100% random wallet.


    Once you have reached 100% you will see something like this below:

    Now print this and store safely!

  2. Walletgenerator.


    Website:

    https://walletgenerator.net/


    When you arrive on this site you will see this:

    To use this site simple click the link above and then move your computer mouse around till you have generated a 100% random wallet.


    Once you have reached 100% you will see something like this below:

    Now print this and store safely!


    Further information on this site:

    Your wallet will look like this:

  3. Bitcoinpaperwallet.


    Website:

    https://bitcoinpaperwallet.com/


    When you arrive on this site you will see this:

    Click on the ‘generate new address’ and you will see this:

    To use create a paper wallet simple click the link above and then move your computer mouse around till you have generated a 100% random wallet.


    Once you have reached 100% you will see something like this below:

    Now press the ‘print wallet front’ and store somewhere safely.