Choosing the Best Cryptocurrency Wallet in South Africa
To choose the best cryptocurrency wallet in South Africa is an important thing to do. It belongs to the first things that you have to prepare before you make the first cryptocurrency purchase. This is because the wallet will not only be the place to store the crypto but also the tool for you to control the money.
Cryptocurrencies have many differences when compared to traditional assets that everyone may be used to. One of the biggest differences is that cryptocurrencies allow for someone to take full control of their own money. This means that when cryptocurrencies are stored in your wallet, you are the only person who can access these funds. As amazing as this is, it also carries a few risks. And what are the risks?
Here’s everything you need to know about crypto wallet in South Africa. We’ll be going over the different types of wallets that you can choose from, and the security of each type.
What is cryptocurrency wallet?
You can think of cryptocurrency wallet as the equivalent of your bank account for your South African Rands. However, the key difference between the two is the fact that you are the only person who has access to the funds stored in your cryptocurrency wallet. Unlike a bank account, no one can help you gain access to these funds if you lose the wallet, it is therefore very important to keep it safe.
Before you can invest in cryptocurrency you’ll need a wallet that will allow you to store your coins. It is very important to ensure that you choose a wallet that provides the right amount of security for your crypto. Over $1.7 billion worth of cryptocurrency was stolen in 2018 alone. You can protect yourself against theft and hacks by choosing the correct crypto wallet.
What is the best cryptocurrency wallet in South Africa?
Again, choosing the right wallet is important. However, it can also be quite difficult to decide which one is best for your needs. Here in South Africa, as in other countries, there are several types of cryptocurrency wallet to choose from according to your preferences.
The first thing you should learn is crypto wallet can be categorized into hot wallets or cold wallets. The first one, hot wallets are the wallets that are on your computer or your phone, they are convenient but they are at a higher risk of getting hacked because they are connected directly to the internet. The second one, cold wallets are slightly less convenient to use. However, we would strongly recommend using one as they store your funds offline, keeping your crypto safe from hackers.
Let us give you more information on hot wallets and cold wallets
Hot cryptocurrency wallets
There are different types of hot wallets that you can choose from. Majority of them are free so it’s entirely up to you to decide which one you’d prefer to go with.
- Desktop Wallets
It can be downloaded and run on your laptop or computer. These wallets connect directly to the internet so it is important to make sure that you don’t have any viruses or malware on your computer. They are very convenient, but they are not suitable for larger sums of money.
Electrum, a Bitcoin-only desktop wallet, is one of the examples. It’s simple to set up and use. It’s also open-source and well known throughout the Bitcoin industry. Another example is Exodus, which supports over 100 different cryptocurrencies. It is also simple to set up and use.
- Mobile Wallets
Mobile wallets can be downloaded onto your phone through an app store. These are similar to desktop wallets, they’re both convenient to use however they are not the most secure option. Storing all your cryptocurrency on your phone is risky as there is a possibility that you end up losing your phone or someone manages to hack your phone. It is recommended to only use mobile wallets for holding small amounts of cryptocurrencies at a time.
BlueWallet (similar to Electrum) is a mobile wallet that is open source and Bitcoin only. It is easy to set up and use, it even allows you to use the lightning network! Another example is Trust Wallet, one of the most popular mobile wallets, which is also easy to set up and use. Supports over 40 different cryptocurrencies.
Cold cryptocurrency wallets
Just like hot wallets, there are some different options to choose from cold wallets. And it is important to make sure that you set your cold wallet up correctly, or there will be a chance that it won’t be secure as you think as it would. Feel free to contact Easy Crypto if you need any guidance when setting up a cold wallet 🙂
Here are two kinds of cold cryptocurrency wallet,
- Hardware Wallets
Hardware wallets are physical devices that hold your private keys on them, rather than keeping them on your computer or phone. The device is usually connected to your computer through a USB cable, and once this is unplugged your funds are stored entirely offline.
When you set up your hardware wallet, you will be given a recovery seed. This will be used to restore your wallet if the hardware device is lost or damaged. It is important to make sure that you write this down and never enter it on your computer or phone, this includes taking no pictures of it. As soon as these words are on an internet-connected device your wallet is no longer offline and your funds are at risk of being stolen if your phone or computer is compromised. Always keep your recovery seeds offline!
Trezor is one of the best cryptocurrency wallets in South Africa. It is an open-source hardware wallet that supports 100’s of cryptocurrencies. Another example is Ledger, a well-known brand that also supports 100’s of cryptocurrencies.
- Paper Wallets
Paper wallets are an easy way of setting up a cold wallet. You simply generate your private key and your address, and then print it out along with QR codes to allow you to send cryptocurrencies to your address, and so that you can easily import the wallet into a mobile wallet when you’re ready to spend your crypto.
Paper wallets are easy to set up. Although, we wouldn’t recommend you store larger amounts of money on them as they are much easier to lose or damage, and they need to be generated and printed in a specific way to ensure that they are truly keeping your funds safe.
How about that? Have you finally found the wallet that suits your preferences and needs? Or do you still find questions about cryptocurrency wallet?
Here, do not hesitate to contact Easy Crypto to find out more about the best cryptocurrency wallet. And let’s buy your first cryptocurrency in South Africa 🙂
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