What are the differences in wallets?

Setting up a bitcoin wallet and the different wallets. Table of contents:

1. What is a bitcoin or crypto wallet?                                                                                                                  2. Why do I need a bitcoin or crypto wallet?                                                                                                   3. Spoiled for choice: Which wallet should I choose?                                                                                     4. The hardware wallet                                                                                                                                       5. The cell phone or mobile wallet

What is a bitcoin wallet?

A wallet for digital currencies such as Bitcoin, Ethereum, Solana, Binance Coin, Ripple & Co. stores the private keys that each user needs to access a coin address and to receive or send credit.                    By the way, at Bitcoin they are called Private Seeds.                                                                               They are so complex that you cannot crack them. There are several ways to keep bitcoins and other digital currencies safe while maintaining an address. So, crypto wallets are digital wallets. You can access it from anywhere in the world if you have the necessary passwords ready.

Why do I need a crypto wallet?

Who crypto tokens and coins wants to use crypto software, a so-called wallet. This is a digital wallet that contains the coins or tokens. But what is the right software? It all depends on how you want to use the coins and tokens.

Since Bitcoin, for example, is not a company but a software protocol that anyone can work on, there are many different wallet providers.

Basically, all wallets fulfill the same task: They help to manage coins and tokens. Nevertheless, there are different solutions depending on the application.

You can think of it like regular money: there's the safe in the wall, which is secure but impractical when you're in the coffee shop. On the other hand, the wallet is handy and light, but not secure enough to store all the assets. There are also safes and wallets for coins and tokens – albeit digital. Which wallet is right for you and yours purposes can be found in the following section.

Spoiled for choice: Which wallet should you choose?

Depending on whether you want to keep a lot of money as safe as possible, or simply want to spend as little money as possible, there are different ways to store and manage coins and tokens.

• The coins and tokens savings book: "I want to keep coins and tokens safe and keep them for a long time.": We recommend a hardware wallet.
• The coins and tokens current account: "I just want to try out various coins and tokens and use them in small amounts.": We recommend a mobile or desktop wallet.

The hardware wallet

Anyone who wants to store coins and tokens in addition to ProfitWallet for a long time and as securely as possible is best served with a hardware wallet. The hardware wallet offers the best combination of security and accessibility.

Ledger and BitBox02 are all well-known brands for bitcoin hardware wallets. Hardware wallets make up for the average users represent a good compromise between security and ease of use. They usually cost between 80 and 150 euros. So as soon as you have more than around 1,000 euros in coins and tokens, hardware wallets start to pay off. Of course, you can use them from as little as 1 euro or 1 satoshi. They are created to protect your private coins and token keys and to help you manage your coins and tokens in terms of holding or sending.

When you set up the hardware wallet, you create a seed phrase. This consists of randomly arranged words. If you keep them well, you can still get your money if you lose your wallet.

Tips:

• If possible, order directly from the manufacturer and if possible to a PO Box, work address or similar instead of using your home address.
• Always check your devices for firmware updates. Also be careful because hackers and other attackers like to perform “phishing” attacks impersonating manufacturers and trick you into installing malware to steal your bitcoins. Don't click links from an email, go to the manufacturer's website instead.
• If you're withdrawing something from the exchange, you can test it with small coins and token values ​​before withdrawing the full amount to your hardware wallet.
• The best practice is to test your recovery procedure to ensure you can recover from the 12/24 word seed backup before transferring any significant funds/bitcoin.

We recommend the following hardware wallets:

Here you can go directly to Ledger Nano x or S

Here you can go directly to BitBox

The mobile phone or mobile wallet

A mobile wallet is recommended for everyone who actively uses Bitcoin and other cryptocurrencies in everyday life. This is an app for smartphones. The purse principle applies here again: It's from it It is not advisable to carry around several hundred or even thousands of euros unless you need them.

Mobile wallets are installed as an app on the smartphone and your private keys are also stored there. This means you can send bitcoins in a matter of seconds via your device.

Some mobile bitcoin wallets even support near field communication technology (NFC). All you have to do is hold your smartphone up to a corresponding terminal without scanning a QR code, for example.