Varieties and Purposes of Multi-Currency Wallets

Due to the permanently decreasing index of the Bitcoin reputation, the altcoins are steadily gaining ground in the market. Users are attracted not only by the technologies and ideas of the altcoins, but they are also the promising objects as a portfolio type for investing.

Based on the excitement in the market, investors are faced with the fact that they must choose where they will store their digital assets. For security reasons, some users prefer to install a separate wallet for each cryptocurrency. This method has its advantages, in the case one storage is hacked, the remaining funds will be untouched. However, this method has no other advantages.

It is fact that there is a security system in every currency wallet, so the client needs to create his own password, and in many cases, also a special access code. All these codes are hard to remember, so they need to be written somewhere. Some transfer data to paper, others store them on digital media. Both methods are easy to explain, but they are still not safe. Papers can be lost, and many servers for storing information are often subjected to attacks by hackers.

In order not to load the head with unnecessary information, multi-currency wallets have been invented. Such programs attract attention with an intuitive user interface. The places for storing altcoins are divided into several types:

  • Online wallets;
  • Mobile phone application wallets;
  • Desktop wallets;
  • Browser extensions wallets;
  • Hardware wallets.

The most reliable of all the above options for storing altcoins, are hardware wallets. However, this method will be convenient mainly for those users who want to save cryptocurrency for a long time without withdrawing it.

Risks when using multi-currency wallets

The most common and understandable risk for customers of multi-currency wallets is the loss of the access code and its random access to third parties. Undoubtedly, each program has its own security system, but if an attacker manages to circumvent it, the balance of all digital currency will immediately suffer.

Users who do not trade cryptocurrency daily are advised not to store a large number of altcoins on exchanges or on online wallets. The warning is explained by the fact that a customer using centralized digital platforms, in fact, trusts his funds to third parties.

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