What is the best hot wallet to store your Cryptocurrency?

What is the heck is a hot wallet?

OK, SO you finally went and did it. You’ve purchased your first little bit of cryptocurrency and you don’t exactly feel very comfy with the idea of having just some company be responsible for storing your funds. And don’t feel bad. You rightly you should be! These exchanges do not care about people’s individual accounts and when/if they are compromised, you are ending up left high and dry to foot the bill while they continue on their merry little way.

Hackers thrive on targeting exchange accounts and a simple Google search will quickly reveal how common of an account it is. Having suffered myself from an actual hack and having my funds stolen, I can honestly tell you that it is not a great feeling in the slightest. Needles to say, it is best to avoid this situation at all costs.

So what do you end up doing, if you can not even trust the crypto exchanges? The answer is that you store your cryptocurrency on a personal wallet that you own and control the keys. There are actually several various ways to store cryptocurrency such as cold wallets, paper wallets and such, but this post will focus specifically only on something called hot wallets.

WHAT IS A HOT WALLET?

When referring to cryptocurrency, a hot wallet usually comes in the form of a desktop, mobile or browser-based application. This application will require a connection to the internet in order to communicate and interact with the blockchain. Now, the best thing about this is that a hot wallet typically offers any user the option of creating a separate little space to keep digital currency.

Passphrases

Something perhaps that we need to make clear is the fact that a hot wallet is not a physical wallet or account. It is honestly just a way to interact with the blockchain and verify that certain funds belong to you. Any user of a hot wallet will first have to come up with a code made up of twelve random words. These twelve random words will help you to restore your wallet should the unforseeable happen. It is the same case if you would like to add or move your wallet to another device.

Public key

We need to talk about keys for a second. Now that you have completed securing your wallet, it is now time to create your addresses. Creating a cryptocurrency address allows you receive your chosen currency from either an exchange, friends, family or any other wallet address, this is known as a “Public Key”. A public key is like an encrypted digital account number that you can share openly with the world

For example, If you found this post helpful and would like to donate feel free to use the following public addresses:

  • Donating Bitcoin – 38V76jiFzcmGdcDht4Knrm9RGLXhjZ7ZoN
  • Donating Bitcoin Cash – qpsfcfy5h7vnsgrrgs76ca4f3fw7s95kkv7u2erwxd
  • Donating Ethereum- 0xbd66b315Ce5cB5C61d9Fd21ED039600C636Fc99C
  • Donating Litecoin – 3GXmeaHhUYqrUmY9LEHznfthBJ9dmL5HjR
  • Donating Dash – XsoZ5n4wucDDqLFKJkjFNsjbi5uifaS7LX
  • Donating Dogecoin – 9vJYDaQgCWjNJdpxbH4gwj3J4dotTs8YDD

You will have a public key for each type of coin that you own and depending on the type of cryptowallet you have, you could have multiple public keys pointing to both the same wallet and currency as well.

Private key

There is also a second type of keys. What is called your private key is actually an encrypted account number you should never ever share with another living soul. This is actually how most wallet hacks occur and is honestly the easiest way to lose your funds in a heartbeat. A private key is used to independently verify a set of cryptocurrency funds regardless of what wallet that coin is in. If I gave you one of my private keys, you would actually then have the power to restore my funds to your wallet and without even having to get my permission!

What are the advantages of a hot wallet?

Likely the biggest advantage to a hot wallet is that it can be used to help facilitate basic transactions. Individuals looking to actually make purchases with their cryptocurrency assets might choose to use a hot wallet, for instance, as the holdings in that wallet will be transferable across the internet. You can do transfers by sending money via the public key address or scan a QR code to send your funds.

So now that you’re comfortable with what a hot wallet is, let’s look at the options available. There is a range of hot wallet services available that are free to download, create an account and use regularly, all with their own pros and cons.

 

EXODUS

Exodus wraps solid engineering inside beautiful design and created a pretty well thought out blockchain asset experience that “just works for normal people”. Their goal is to remove the geek requirements around the use cryptocurrency and make design usability a priority

Exodus features

  • Supported coins: BTC, LTC, ETH, DASH, ETC and over 20 currencies in total
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get an Exodus wallet

 

EDGE

Edge’s first product, a bitcoin wallet and business directory, was launched in the winter of 2014, under the company name of “AirBitz” and has been securing millions of dollars worth of bitcoin ever since.
Like many others, Airbitz was inspired by the bitcoin revolution and set out from day one to build tools that kept bitcoin users safe and in control.

The Airbitz Bitcoin Wallet was the first application of a security model we coined as “Edge Security”. By the end of 2015, we had successfully packaged up the tools that make the Airbitz Wallet awesome into a software development kit (SDK) that developers could use for their own applications. Our “Edge Security” SDK has since been integrated into top-tier blockchain projects such as Augur, Wings, and OpenLedger.

Airbitz quickly advanced from a bitcoin wallet in 2014 to a paradigm shifting data security solution and multi-currency wallet in late 2017. Given our company’s evolution and coining of the term, “Edge Security”, we thought it would be best to highlight this focus as the core of our brand. We look forward to the next stage of our company as Edge and invite you to join us on this innovative journey.

EDGE features

  • Supported coins: BTC, BCH, LTC, ETH with a total of 12 coins are supported
  • Wallet type: Cold storage, encrypted
  • Desktop: No
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Great
  • Ease of use: Very easy
  • Open source: No

Get Edge wallet

 

JAXX

Jaxx is a cryptocurrency wallet available for download on 8 platforms. The Jaxx wallet is the top choice of Bitcoin users and cryptocurrency traders worldwide for its security, privacy, and simple yet powerful set of features.

Jaxx features

  • Supported coins: BTC, LTC, ETH, DASH and over 20 currencies in total
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get a Jaxx wallet

 

BREAD

BRD is the easy and secure bitcoin wallet, the best way to get started with bitcoin. Our simple, streamlined design is easy for beginners, yet powerful enough for experienced users. If you’re first getting started with bitcoin or already know what you’re doing, BRD is the smart choice for storing your bitcoin.

Bread features

  • Supported coins: BTC, LTC, ETH, ETC and a large number of ERC-20 tokens
  • Wallet type: Cold storage, not encrypted
  • Desktop: No
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get BRD wallet

 

ENJIIN

The Enjin Smart Wallet foundation rests on our top-of-the-line security architecture. It employs innovative security techniques such as the Enjin Secure Keyboard, the rule of two encryption and other measures to turn your smartphone into a hardware-like secure wallet.

Enjin features

  • Supported coins: BTC, LTC, ETH, ETC and all ERC-20 tokens
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get Enjin wallet

 

CRYPTONATOR

Cryptonator is an all-in-one online Bitcoin wallet which supports multiple cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and others.

It enables fast and easy direct transactions and allows instant exchange between different cryptocurrencies in one personal account. Combining usability with high-level privacy, anonymity and security, Cryptonator offers free multi-cryptocurrency accounts, which are accessible 24/7 worldwide on your laptop, desktop or mobile devices alike.

Cryptonator features

  • Supported coins: BTC, LTC, ETH, DASH, ETC and a total of 19 currencies
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get Cryptonator

INFINITO

Infinito Wallet is the mobile universal hot wallet, which offers an extending list of leading cryptocurrencies, such as: Bitcoin, Ethereum, Bitcoin Cash, EOS, Litecoin, GAS, Dash, ETC and Dogecoin. It also supports all tokens on ETH ERC20, NEO NEP-5 and more to come on our roadmap. It officially launched on the 8 December 2017.

Infinito features

  • Supported coins: BTC, BCH, ETC, EOS, ADA , ETH and a large number of ERC-20 tokens
  • Wallet type: Cold storage, not encrypted
  • Desktop: No
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: N

Get Infinito wallet

 

COINOMI

Coinomi promises users absolute control of money and privacy at any given time and probably supports the most coins I’ve seen of any wallet. Use it for Bitcoin, Ethereum and a huge number of Altcoins and Tokens always on you, securely with our cross-chain enabled mobile hybrid wallet.

Cionomi features

  • Supported coins: BTC, ETH & 40 other currencies + support for 200 ERC-20 tokens
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get Coinomi wallet

 

EIDOO

The Eidoo app is the easiest way to manage your assets in blockchains. Eidoo is a multicurrency wallet with a single backup passphrase and HD security level. Eidoo is a Multicurrency Wallet for managing all the assets based on the Ethereum blockchain.

Eidoo features

  • Supported coins: BTC, LTC, ETH, ETC and all ERC-20 tokens
  • Wallet type: Cold storage, not encrypted
  • Desktop: Yes
  • Mobile: Yes – iOS and Android
  • Built-in exchange: Yes
  • Safety: Good
  • Ease of use: Very easy
  • Open source: Yes

Get Eidoo Wallet

 

 

HOT WALLET SECURITY TIPS

Hot wallets are not a silver bullet by any means when it comes to safety. It is important to realize that poor management of your safety measures and vulnerabilities in the wallets core code are not good habits to have. Behavior like this has lead to many hacks in the past and users have lost a lot of money because of such behavior.

Do your research

Before you decide to trust any crypto wallet with your coin, it is best to always do research and make sure you are in fact using the correct website and correct application. There are no shortages of scammers out there who create phishing sites and copy wallets because they are looking to steal your cryptocurrency given the slightest chance.

Check out forums like bitcoin talk or Reddit for the latest news on any hot wallet you plan to use.

Passphrase

Your passphrase is like the masterkey to that specific crypto wallet and you should definitely store it in an extremely safe place. An encrypted document on your hard drive or flash drive is a good route to go. Just keeping it on a physical piece of paper that you can keep somewhere protected like a safe is also another good route to go.

Private keys

OK, this needs to be said. Please make a copy of all your private keys and for the love of all things holy and decent, DO NOT store your private keys on ANYTHING tied to either an email address or on any kind of cloud services. These are extremely easy to hack! Keep it either in an encrypted document on your hard drive or flash drive or on a piece of paper you keep somewhere safe.

Also, make multiple copies just in case you lose a flash drive or hard drive. Enough said about that.

 

If you would like a step by step guide of how to create a Plug-N-Play Cryptocurrency portfolio built from Bitcoin, Ethereum, Litecoin and many other quality coins (some of which that pay you just to own them!), click the banner below:

 

 

 

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