Looking for a safer place to store your cryptos? A crypto wallet is an answer – here are the top features a crypto wallet should have

There is a number of factors that define the ingenuity of a product, the same goes for a crypto wallet which should have the best-in-class features and be used while dealing with cryptocurrencies. According to a crypto wallet development company, by obtaining a crypto wallet you have the ability to send & receive and buy or sell cryptocurrencies from any corner of the globe. Cryptocurrency wallets have evolved a lot and have become more secure as it uses secret keys to store information of the digital transactions for blockchain ledgers.

How does a cryptocurrency wallet store cryptocurrencies?
As depicted by a blockchain development company in Kolkata, a crypto wallet works the same as a bank account but in a bit different manner, as it has a pair of public and private cryptographic keys. The keys have different functions, the public key allows other wallets to make payment to your wallet and the private keys allow spending or payment using the unique crypto wallet address.

The thing about using a crypto wallet is that it is highly secure and allows for instant transactions such as withdrawals and deposits can be done swiftly. The wallet even lets you keep a tab on the available balance of cryptocurrencies with transparent transactional fees. According to the best blockchain development company, you can even store the cryptocurrencies in your wallet in order to buy or sell them at any point in time. The wallet even keeps track of the encryption keys used to digitally manage transactions by storing the address on a blockchain where the digital assets are generally stored.

Top features that a crypto wallet should have can be listed as –

•    Must feature multiple crypto storage facilities

A crypto wallet should have multiple crypto storage facility helping store different types of digital currencies in a single location or under one roof. Before that, it is important to verify the account on an exchange or open a new wallet for storing and transacting the currencies using the wallet. There are multiple wallets that are purpose-built and can be only be used for storing just one cryptocurrency.

•    Must be able to maintain user anonymity

According to a crypto wallet development company, a crypto wallet should be able to maintain user anonymity and for that, it is important to check that the wallet only accepts only the email or requires any other form of confidential information of the wallet user. A wallet should be able to maintain user anonymity so that sensitive information’s never gets revealed by any chance.

•    Must be transparent

Digital assets should always be handled with care and the wallet used to store the cryptocurrencies should be transparent enough to explain the services offered, operating methods, and security levels used in the wallet. It is best to use open-source wallets for storing cryptocurrencies as they offer the ultimate security required.

•    Must have multi-signature security

Online hackers are always on the prowl to steal currencies, so storing your digital assets into a multi-signature wallet increases security. To store your cryptos a multi-signature wallet is the best option as it is the most preferred method of storing the cryptocurrencies. As per the best blockchain development company, using a multi-signature wallet the transactions can only be initiated using multiple keys that will permit the transactions. However, a user must always guard their multi-signature that is required for completing the transactions.

Why are crypto wallets only suggested for storing and trading cryptocurrencies?
As depicted by a blockchain development company in Kolkata, both the keys used in the wallet have different functions, one functions as a public key that allows initiating payments to your wallet, and the other functions as a private key allowing for spending or payment by simply using your wallet address. Some of the benefits of using a crypto wallet can be stated as –

•    Speedy deposits

Sending or receiving cryptocurrencies to and from another digital wallet is easier now, and the crypto wallet does it seamlessly. The auto-deposit feature of a crypto wallet gives you the flexibility to send or receive digital assets simply using your trading account.

•    Instant cryptocurrency withdrawal using two-factor authentications
The crypto wallets allow for instant withdrawal using the two-factor authentication process. Being multi-signature a crypto wallet uses two out of the total three keys. The third key remains stored on a remote server that tracks every transaction on your behalf.

•    Cross-border usage facility
Allows for cross-border payment and lets withdrawal of the digital assets to and from any location. To make cross-border payments all you need to have is an account with a renowned cryptocurrency exchange that is directly linked with your bank account.

With the potential it has, a crypto wallet can be used to represent the financial status of a cryptocurrency holder. However, as suggested by the best blockchain development company, if you have an interest in digital currencies and have started investing in cryptos, then it is best to use a crypto wallet with some of the leading features that help secure your assets and keep safe the transactions as well.