Storing your cryptocurrencies: 3 elements that make a good cryptocurrency wallet

Access to private keys

Make sure your wallet gives you access to your private keys, because, in theory, you cannot freely manage your cryptocurrencies if you do not have access to the private key of the wallet that contains them. This is not your app password or your trading account password!

The private key is usually an access key to a single address (account), while the initial phrase or passphrase is an access key to the entire wallet, which can contain multiple addresses.

Passphrases are generated randomly and each address has a unique private key. Anyone who has access to an address’s private key has full control over the cryptocurrencies linked to that address.

If you’re using a wallet that doesn’t give you access to your seed phrase, you technically don’t have a control over your cryptocurrencies. This is the case with trade-level portfolios such as Binance. If you have any problems, withdraw funds from these wallets can be locked and you will be helpless in the face of the situation.

Restore functionality

Managing all of your private keys can be quite tiring if you start trading a lot of cryptocurrencies from different chains.

However, the process is greatly facilitated by a wallet equipped with private key management tools.

Every cryptocurrency holder should know how to store and protect their private keys. That’s why Trust Wallet makes it easy for you with just one backup phrase. One key to keeping them all! #ProofOfKeys https://t.co/o68OgW0DTh https://t.co/lStVhdDUN6

Your private keys may be available through a recovery cloud service. Thanks to this feature, every new wallet you create immediately sees its new private keys saved in the cloud (Apple or Google). All your private keys are stored in the cloud.

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A unique password must be generated to decrypt the keys, which are stored in encrypted form. To regain access to all your wallets and all your cryptocurrencies if, for example, you lose your smartphone, simply reinstall the wallet application and connect via Apple or Google and enter your password for Backup.

Editable blockchain fees

The fees you pay to validators and miners on the public blockchain can be changed on some of the best wallets. They often offer 3 options: slow, medium or fast transactions. If you choose the “fast” mode, the cost of the transaction will be higher, but it will be completed faster.

The ability to choose the amount of costs it’s important. If you need to quickly buy a cryptocurrency, for example, before its price rises, you may want to speed up the transaction and put it first in the queue. Otherwise you can leave the default settings which will save you costs.

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