Multi-currency wallets for cryptocurrency

MEW Wallet

MyEtherWallet serves all tokens issued on the Ethereum blockchain, including NFT. Private keys and passwords are stored directly with the owner. The interface has tools for interacting with smart contracts and decentralized applications.

Coinomi

Another interface in the rating of multi-currency crypto wallets supports 145 digital coins (Bitcoin, Ethereum Classic and others), as well as 160 types of fiat money. The general functionality includes a Web3 browser and tools for working with the DeFi decentralized finance marketplace. The app includes a payment card platform for buying coins with a payment card.

Blockchain

Popular online cryptocurrency hot storage service with 80 million active accounts. There is support for over 200 currencies, a built-in trading terminal for trading and a staking protocol. Probably the best multi-currency wallet for cryptocurrency in Russian. As with any exchange, it supports a large number of payment systems for deposits and withdrawals.

Why you need a multicurrency wallet

With the launch of Bitcoin in 2009, software appeared that allowed users to interact with records in the blockchain. It could be used to move coins, make public keys and store private keys. As new digital assets were launched, developers introduced programs and applications.

With the growth of the cryptocurrency market and the emergence of a large number of projects, the problem of managing coins arose. It was inconvenient for users to keep dozens of applications to work with each individual coin and store passwords to private keys. A multi-purse for cryptocurrency can interact with different blockchains within a single software environment.

The scope of application of coins has expanded significantly. This has been facilitated by the development of software to interact with the blockchain.

More and more applications of coins are emerging. Due to the growing number of coins on the market, users more often choose software that can work with many types of blockchains and tokens.

Types of multi-currency wallets

Cryptocurrencies come in several types – they are divided by the way they access digital assets and the method of saving:

• Desktop – the very first type of software that allows you to manage cryptocurrency from the user’s computer. All confidential files are on local disks under the owner’s control. Early versions needed to store the blockchain on HDD and took up a lot of free space. Now this drawback has been fixed, and the multicurrency wallet for cryptocurrency is a “thin” client without loading the registry on the PC. Private keys can be written to removable media, providing a higher level of security. If attackers gain access to a computer, it will be impossible to sign a transaction without connecting the device.
• Android or iOS mobile apps – smartphone software. When the private keys are on the owner’s phone, such wallets are called non-custodial. It is a fully functional cryptocurrency storage. Application – a software shell to connect to an account on the centralized exchange Trust Wallet.
• Hardware devices – equipment for offline storage of digital assets. When connected to a PC, private keys are created inside the media and are additionally protected by a cryptographic cipher. The transaction is signed securely. The average price of the device is $100.
• Online – mainly wallets on centralized exchanges. This method is the most convenient for interacting with cryptocurrency. On such platforms, it is easy to replenish the account with a plastic card and withdraw funds through payment systems. Exchange and trading services are available to the user. This method is called custodial, since private keys need to be stored on the servers of the exchange, which makes it the most insecure. Attackers can gain access to online services, resulting in multi-million dollar losses.

Cryptocurrency is not stored locally on a computer. It is a record on a blockchain. Programs only provide a bridge to communicate with the distributed ledger. The most important element of this is the private key. This is the identifier by which the network perceives the user as the owner of the digital asset. The priority of any participant is to maintain control over the funds in the account.

How to choose a cryptocurrency multiwallet

The method of storage affects the convenience of working with digital assets. Users pay attention to the built-in features of the software, such as multi-language or the presence of an exchange service.

The main criterion is safe storage of cryptocurrency.

The choice of the method of interaction with digital assets depends on the method of application and the results the user wants to get. Factors that influence the decision:

• The size of the amount. If the owner is going to operate a small amount of coins, it will be most convenient to get an account on a centralized exchange. When it comes to large capitals, there are more reliable wallets for cryptocurrency – hardware devices or desktop programs with separate storage of the private key.
• Number and type of transactions. Trading is a large abundance of transactions in the market. One solution would be to divide the amount of investment into several parts and trade cryptocurrency from different centralized platforms. This reduces the risk of losing all funds if one of them is hacked. For a long-term investment portfolio, when the volume of transactions is lower, there are non-custodial mobile apps on Android or iOS. They combine ease of management and security of storage.
• Type of cryptocurrency. There are programs that support only the Ethereum blockchain with all tokens issued on its basis. If the work is related to smart contracts, DeFi or NFT on this type of protocol, such software will avoid incompatibility in the network. However, a multi-purse for cryptocurrency can also cope with the requirements. It is not necessary to choose mono-branded ones.

For beginners, it is recommended to try several types with small amounts. This way, you can safely get the initial skills of working with the blockchain and choose yours based on experience and requirements.

Replenishing your wallet

The popularity of the digital asset market is on the rise. As a result, there are many newbies who face the problem of buying coins with fiat money. Not all storage methods have built-in features for processing plastic card transactions. There are several methods of replenishing a cryptocurrency wallet:

• Exchangers – services support more than a dozen payment systems: from bank transfer to virtual money – YouMoney, WebMoney. The price of cryptocurrency here is higher than on centralized exchanges. There are commissions and minimum transaction amounts. This method of replenishing a cryptocurrency wallet is the most expensive of all. Its main advantage is the lack of registration and the speed of processing the application. On average, the operation takes up to 15 minutes.
• Cryptocurrency exchanges are centralized platforms for trading and investment activities. The most popular method of replenishment. After confirming the identity, the user buys coins at the market rate without overpayment, using plastic cards. When the coins are credited to the internal exchange wallet for cryptocurrency, the owner can transfer them to an external address. This will protect against potential hacking of the trading platform. You can connect the confirmation of operations with a code, which the system will send by email.
• P2P exchanges are decentralized platforms where participants can trade with each other without intermediaries. The user creates an application, where he specifies the type of cryptocurrency to be purchased, the number of coins, his address and payment method. When the second party of the exchange is found, a smart contract is concluded, which automatically fulfills the terms of the transaction. This is a safe and completely anonymous method. The standard commission of the exchange is between 0.5 and 1%.
• Cryptomats – terminals for buying digital assets. They work on the principle of a fiat ATM, provide security in transactions. However, there are a number of disadvantages – poor distribution (even in large cities such terminals are represented in single copies) and a small selection of coins. The offer of coins is limited to the most popular ones – Bitcoin, Ethereum, Dogecoin, Litecoin. Another weakness of cryptomats is high commissions, reaching 6% per transaction.
• Telegram bots – an automated program complex created in the popular messenger Telegram. The user finds a chat room where he is verified: he specifies his phone number, residential address and attaches a photo of his passport or driver’s license. After confirming the information, he buys the currency.

The main advantages are high speed of transactions (5-7 minutes) and low fees (0.5%). Network commissions are paid by the initiator of the transaction. The disadvantages of bots are limited supply of coins, limits up to $1 thousand and the prevalence of fraudsters. Before entrusting your money to an automated program, you should familiarize yourself with lists of addresses in messenger with reliable bots.

The most common way to buy coins is with a plastic card. Almost everyone has it, with it it is very convenient to make online payments to purchase a small amount of coins.

The choice of service for replenishing a multicurrency wallet for cryptocurrency depends on the user’s requirements for anonymity and security. The highest volumes of trading transactions are observed on centralized exchanges.

Advantages and disadvantages of multicurrency wallets

Cryptocurrency owners compare the strengths and weaknesses of different storages. Active trading tools are not as secure. And hardware wallets are not as flexible to use as an account on a centralized exchange.

A wallet for cryptocurrency should first of all guarantee the safety of confidential client data, and then provide convenience. There are many multi-currency storages on the market, but the number of supported coins and tokens is not the main priority of selection.

Security measures

With the development of the IT sphere, it is becoming more and more difficult to hide your funds from attackers. Digital assets are proof of this – since 2018, hackers have been able to steal cryptocurrencies worth more than $6 billion. Information about attacks on the infrastructure of exchanges appears every week.

Newcomers take security issues lightly, and it is their accounts that become victims of attacks.

When private keys are concentrated in the hands of the owner, only he is responsible for their safety. There are a number of recommendations to ensure data protection:

• Installing updates. Cybercriminals take advantage of vulnerabilities found in operating systems and software to gain access to a computer. Developers are quick to close discovered holes with updates, restoring safe device functionality.
• Licensed software. Installing official applications protects against the possibility of embedding malicious code. You should never use unlicensed software. They often have viruses or data interception programs sewn into them.
• Two-factor authentication. This security element should be enabled on all services where it is provided. It is desirable to have an additional SIM-card if SMS confirmation is used for two-factor authentication.
• Installation of antiviruses. Additional security software is effective against most massive attacks using already known vulnerabilities. You should also enable the built-in firewall and firewall, if any.
• Separate device. To work with large amounts of cryptocurrency, you need to allocate equipment. This reduces the likelihood of installing third-party programs with embedded malicious code. You should create a separate account in the operating system without administrator rights and log in only under it, which will deprive attackers of the opportunity to download viruses.
• Public Wi-Fi. You should not use such wireless networks to work with digital assets. Hackers can intercept data through poorly secured communication channels and gain access to the account.
• Phishing. Checking the address bar allows you to avoid the risk of transferring personal data when entering a fake site. Such resources completely copy official ones in order to trick the user into entering login and password.
• Cloud storage. Do not place private keys or other information on such services. You can lose data on them.
• Backup copying. Copies of information placed on different carriers will protect the owner from complete loss of access to the account.
• Asset allocation. The general recommendation is to divide the capital into different vaults, reducing the likelihood of losing all funds due to the hacking of one of them. Online wallets and exchange accounts should hold a small amount of coins and tokens.

With the increasing demand for digital assets, cryptocurrency security rules come to the forefront. Hackers use a wide range of tools to intercept sensitive information. This includes developing high-tech viruses, finding vulnerabilities in operating systems, sending emails with embedded malicious links, and social engineering (hackers present themselves as a support service, and victims give them all the information themselves).

Compliance with these recommendations does not guarantee the complete safety of koins, but it greatly reduces the risk of suffering from the actions of fraudsters.

More and more people are choosing smartphones as their main means of communication with the world and cryptocurrencies. This opens up new opportunities for attackers. Protection on phones is not as effective as on computers, in addition, users often use public Wi-Fi networks to send transactions, reducing the level of security.

Conclusions

The cryptocurrency market is growing rapidly due to the arrival of new participants. Since digital assets do not have a physical form, there are software packages to interact with them. They allow the exchange of cryptocurrencies and tokens by editing records in the blockchain. There are many types of vaults that meet different security and convenience requirements. For example, centralized exchanges offer a wide range of services and tools, from exchanges to margin trading. But they are at the bottom of the security and anonymity rankings.

Practicality and reliability are the main criteria when choosing a storage facility. Having determined the direction of the main activity, the user begins to try and search for his option. Cold methods are not suitable if there is activity with many transactions. It is inconvenient, the point of offline storage of cryptocurrency is lost, if you need to frequently apply the private key on the Internet. When using online services, such as for trading, it is recommended to split the capital across multiple trading platforms.

When private keys are under the control of the owner, it imposes a certain responsibility. It is necessary to independently monitor the state of antivirus software, update the operating system and make regular backups.

Replenishing a cryptocurrency wallet is a non-trivial task, although it has become easier since the launch of Bitcoin in 2009. There are many ways to buy cryptocurrency using traditional payment systems. Participants choose the degree of privacy they need. A quick and convenient way is to use the services of a centralized exchange, where after verification you can trade cryptocurrency at the market price without overpaying in third-party exchange services. There are also DEX-platforms, where participants exchange with each other without disclosing their personal data. If we are talking about a small amount of coins, you can conduct the transaction via Telegram-bot. The whole operation will be automatic and will take up to 10 minutes.

Frequently Asked Questions