Posts

Why You Need A Crypto Wallet

avatar of @cryptosota
25
CryptoSota
@cryptosota
·
·
0 views
·
3 min read

There are a plethora of advertisements stating you can get free crypto if you sign up for a crypto exchange. You jumped on board and went through the verification steps. You waited (probably a week or two) for your verification to clear and purchased your first crypt asset! You made it! Well... kind of! You obtained your crypto and now you want to keep it secured, I imagine. I'm going to go out on a limb here and assume none of us want to get robbed.

While crypto is highly secured and encrypted to begin with, it's always best to keep your crypto off of an exchange and stored in a wallet. This ensures that now you personally own your encrypted keys and can do whatever you want with them. The point of crypto is decentralization and you having control over your own money... so you might as well do everything you can do to ensure this is happening!

In this article, I will be going over my most important reasons why it's important to have a crypto wallet for any and all of your crypto! Of course, please do your own research because this is not financial advice!

I'm going to make this easy for all of us with a bullet list! This list is in no particular ranking from most important to least, as these are all very important points!

  • Security & Privacy: This is why crypto wallets even exist... to safely store and secure your crypto off of an exchange. When sending and receiving crypto from your wallet, the other person only sees an address with no name, location, or any private information shared. Heck, you could be getting your crypto from Antarctica and not even know it! Only you can approve the transaction with a key, not having to rely on any third parties. Once a transaction is initiated, it's pretty unstoppable. The transaction is extremely difficult to hack and reroute and the transaction can't really be stopped. So not only are your crypto keys now secured, you can do as you please with whoever you want! Crypto wallets also feature various types of authentication tools to ensure that you, and only you, are accessing your wallet.

  • Ease of Use: Remember carrying around loads of fiat currency bills in your back pocket? Not anymore! Your keys are now stored in your [most popularly] mobile wallet directly on your phone. Now, all you need is an app with your account attached to it. You can trade anywhere in the world to anyone! There's no need to worry about the different exchange rates at a specific moment in time, only a transaction fee. Since crypto is very transparent, you'll know what these transaction fees are prior to completing it, always. No waiting on a bank to complete the transaction, no hidden costs, period. Just whip out your phone, copy the address, and send and receive those cryptos!

  • Earnings: Some crypto wallets allow you to earn additional crypto for specific coins or tokens just by holding them. If you having a savings account through your bank (yuck), this is very similar to that, except you can earn much more than the traditional savings account. Also, we know that the crypto market is ever-changing and volatile. Obviously, you have the potential to earn as prices go through the "normal" market motions, but wouldn't it be better to earn when the value increases AND just for holding the coin/token? I'd say yes to that all day long! Why get an average of 0.04% APY with your bank when you can earn 6%+ APY on your crypto? Seems like a no-brainer to me!

I hope this article helped the newcomer to the crypto community and was a fun read for the more experienced crowd! Keeping your crypto secured in a wallet is beyond important and I think everyone should make the switch from the exchange to the wallet. Later on, I will be posting an article pertaining to the differences between hot wallets and cold wallets... so keep your eyes peeled!

*Security and decentralization are key, so protect your precious crypto keys at all costs!

Thanks so much for reading!

This article was originally posted on my Publish0x platform here: https://www.publish0x.com/decentralization-why-is-it-important/top-3-reasons-for-a-crypto-wallet-xomedgr