At some point in your decision to adopt blockchain and cryptocurrency into your life, you must make the choice on when, and how to start investing in crypto.
When that choice is made you will need a cryptocurrency wallet to hold your crypto assets. Therefore, to help in your choices, I’m going to dedicate the next (3) op-ed articles with a focus on cryptocurrency wallets. The various types and the advantages and disadvantages of using them.
In a nutshell, cryptocurrency wallets all fall under (4) main categories:
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- Decentralized Wallets (self-hosted, non-custodial)
- Centralized Wallets (exchange hosted, custodial)
- Hot Wallets (mobile, web-based)
- Cold Wallets (hardware, paper and brain)
Now, regardless of the type of wallet you get, all crypto wallets allow you to perform (3) key functions: Store, Receive and Send crypto. And all crypto wallets equal your very own bank account. So, with that said, let’s examine the first type of cryptocurrency wallet and the originator of the space: Decentralized Wallets.
Decentralized Wallets – Self hosted, non-custodial. A cryptocurrency wallet that you host, manage, and maintain yourself. You are in full custody of your funds; your wallet is your bank. Unlike centralized wallets, decentralized wallets aren’t provided by a crypto service or financial institution. Instead, they reside in your phone or desktop computer o, cutting third-party services out of your transactions altogether.
Decentralized wallets allow pure peer-to-peer, crypto-to-crypto digital transactions, that eliminates any third-party interference. And decentralized wallets contain your private keys. Along with your public key, private keys are what decrypts and secures your transactions, giving you full custody of your funds. It is only with private keys, that you have full and total control of your crypto. In the industry we have a saying:
“If it Ain’t your Keys, It Ain’t your Cheese …”
The ability to transact in a totally peer-to-peer environment, devoid of third-party mediation is very important for a few reasons, independence, and security top the list. But it also helps avoid the security risk associated with third-party intermediaries.
Obviously, this type of total financial freedom, and custody of one’s own funds, is the Bain of the U.S. government. Who as I write this article are introducing legislation to make self-hosted, decentralized wallets illegal. And although this would be almost impossible to enforce, it is amazing the lengths in which the government will go to keep its citizens enslaved to the U.S. dollar.
So, if you’re interested in having total control of your crypto, without Big Brothers interference, then decentralized wallets are a must have. Below are (4) of the decentralize wallets I use.
- Exodus Wallet – www.exodus.com
- Trust Wallet – www.trustwallet.com
- Meta Mask- www.metamask.io
- Coinomi – www.coinomi.com
Author: Majeed A. Kariem, CBP
C4-Certified Bitcoin Professional | President, Blockchain Merchants Assoc.
[email protected]
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For more info on the Blockchain Merchants, click here; for previous columns, click here.
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