With the rapidly growing interest in trading in cryptocurrencies, there has also been a soaring demand for crypto wallets.
Crypto wallets are essentially devices or apps developed solely for cryptocurrency traders to buy, sell and preserve their digital currency via their android devices. The crypto wallets preserve your password, otherwise called private keys, which provide access to cryptocurrencies.
Like regular wallets that store actual money, crypto wallets do not actually store the crypto you own. Your crypto or assets stays active on the blockchain, which can only be retrieved using private keys. Keys provide you complete right of possession over your digital assets and give you the power to carry out transactions. It is essential to keep your private hardware containing private keys safe because if you lose the key, you lose all your cryptocurrencies with it. The crypto wallets are split into hot and cold crypto android wallets.
Cold crypto wallets for the Android platform
Out of the two wallets, a cold wallet is considered more protected as it is not connected online. The wallet connects with the internet only when the user requires to make any transactions. The best coins to stake here include Tether, XRP, ETH, Bitcoin, BTC, etc. The cold android crypto wallets are again divided into paper wallets and hardware wallets.
- Paper wallets: The critical feature of a paper wallet is that the key is physically written down in a paper or other medium and preserved in a safe place. These printed keys or QR codes will be disconnected from the internet at some point, and paper wallets are preferred more due to their highly secure nature. This will surely make crypto usage highly complicated as digital assets can be used only on the internet.
- Hardware wallets: In hardware wallets, the keys are safely kept in hardware like a Thumb-drive or Pen-drive and used only when the trader wants to make transactions. Hardware wallets respect the security as well as the convenience of the users. There is no mandatory requirement for you to own a Hardware wallet to send, store or buy crypto. Still, they minimize the risk of your cryptocurrency being stolen, thereby considerably increasing the security.
Hot wallets for the Android platform
Hot android wallets have become the most popular android wallet because of their effortless way to establish and use. As this wallet is consistently linked to the intent, the users who perform frequent trades and transactions find it more suitable because all you have to do is make a transaction by pressing a few buttons on your device, and it is done; it is that simple. Frequent traders are advised not to keep massive crypto amounts, and the risk factor revolving around hot android wallets is relatively high. Generally, a hot wallet is an exchange wallet. Due to security reasons, most exchanges have pronounced to hold a prominent part of the clients’ digital assets in a cold wallet. As hot wallets are continuously connected online, their vulnerability to cyber threats, theft, and other security menace is more in contrast; the number of hot android wallets is relatively high. The best coins to stake in the hot android wallet platform are ATOM, XTZ, VET, LSK, etc.
What are the advantages of android crypto wallets?
- You have the permit to control all your digital assets on a single platform.
- Have access to manage your private keys. You can change the password if the password gets hacked.
- Wallets let you send and receive digital assets or cryptocurrencies from everywhere in the world.
- You can browse decentralized finance apps.
- You become eligible to shop from places that accept cryptocurrencies.
- You can also interact with usernames.
Which one should you go for – hot or cold crypto wallet?
Even though cold wallets offer high security to their users, many traders find it illogical and difficult because of the need to set up an internet connection for every other transaction. In that case, traders often lean towards hot crypto android wallets.
Because of the security concern, the hot android wallet is highly recommended for more minor crypto amounts. And cold crypto android wallet is suitable for medium to long term investments. Both wallets are equally useful, and you have to weigh your specific needs and the nature of the transaction you want to perform, to make the right decision.