coins are gaining prominence and popularity with an astounding speed. Their growth has astonished everyone including propagators of bitcoin.
It has also been indicated by the declining price of bitcoin. Altcoins have established an outreach to larger market and some of them exceeded 1$ billion in number. Altcoins are getting more popular because of ideas and markets they deal in. Each one of them is dedicated for a particular market which makes them more valuable for users. This also makes multi currency crypto wallet development a much demanded professional. As their number and utility is increasing, the question that arises is, where do we store an assortment of crypto coins?
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Why keeping separate wallet for each coin?
So far, the general approach is to keep a separate crypto wallet for each altcoin, for example, Electrum-Dash or Ethereum Wallet. It is definitely a safer way to store your digital assets, considering that each wallet has its own private key which makes the storage safer.
You can store your altcoins using the cold storage device which gives you 100% security. Apart from cold storage, the hot storage of coins with digital asset also gives you the same amount of surety as the wallet is secured with its own private key.
However, this method also causes some inconvenience. First of all, managing different wallets for different coins is not an easy task. Secondly, you also need to save each key seed-phrase. For using every coin, you need to first grope for its key and then you’ll use the coins.
Lastly, apart from storage of coins, saving their private keys would also be a responsibility. Upon losing any of these keys, you’d lose the digital currency in that particular wallet once and for all.
Read More: Store and exchange your coins with Multi-cryptocurrency wallet
Why keeping coins with crypto exchanges isn’t suggested?
It is also noted that people keep their altcoins with exchanges as well. It is surely very convenient as all the exchange platforms offer digital wallet to store different variety of coins. However, it raises a big question mark on the security as you vest your assets into the surveillance of a third party.
Moreover, most of the crypto exchanges are centralized, they do not provide any security against hacking attempts and DDOS attacks. This makes the safety of your coins highly vulnerable and if you lose them once, there is no surety that the exchanges will compensate for that loss. Due to lack of regulations, cryptocurrency exchanges are not contractually or legally bound to indemnify you in case of theft or loss of tokens.
Cold Storage/ Hardware Wallets
Hardware wallets which are also known as cold storage are probably the safest way of storing your coins. The reason is simple, these wallets are not connected to any other device and work completely offline. There is no way one could hack into a cold storage. To access this storage you need to have embedded private keys which remain with the owner of wallet.
There are some popular hardware wallets such as Nano S, Trezor and KeepKey. All the hardware wallets are designed to support various alt-coins such as ETH, LTC, Dash etc. The private keys are always embedded into the core of wallet making it inaccessible in any other way.
Online Wallets
Similar to crypto exchanges’ wallets, online wallets are also not a safe option. Online wallets also involve private keys shared with third parties. However, online wallets come very handy if you are in active trading of cryptos. They offer a wide variety of popular cryptocurrencies and also enable to execute transactions at lower commissions.
Mobile Wallets
As compared to online wallets, mobile wallets are much safer as they come equipped with features like seed-sentence and intuitive interface. They are also more convenient than any other version of crypto wallet.
Desktop Wallet
Desktop wallets have been proved to be an efficient means for storing multiple coins. Currently there are a number of desktop wallets such Exodus. Like its other counterparts, desktop wallet can also include multiple currencies such as ETC, LTC, DOGE, DASH, GNT, REP.
Some of these wallets also offer intuitive and attractive interface. They also come with enhanced features like built-in exchange in shapeshift form and integration of private keys.
Technoloader is a blockchain development company that develops multi-currency crypto wallets at very affordable price. We are a team that holds expertise on every section of this technology. Hire a crypto wallet developer from us and never face any issues with your crypto trading.
