Help! Do I need a crypto wallet?

We think everyone should own crypto. But buying it is only half of the process. How do you keep it safe? Let’s talk about cryptocurrency wallets, and if you need one!

Kyle Turnbull

June 06, 2021 · 5 min read

Do you need a cryptocurrency wallet

Do you need a cryptocurrency wallet

The next 12 months look to be a period of massive growth for the crypto industry. As mainstream sources continue to cover cryptocurrency and blockchain, we’re seeing its popularity soar. It can be difficult to find simple, helpful information, and if you’re just starting out, it can be overwhelming. This is a great place to start. Many people want to know, how do you get a crypto wallet, and do you need one?

As always, if you’re new around here, welcome! We’re excited to have you here. The Divi Blog is a place where you can start your learning journey, with easily digestible information about all things crypto!

There are a few options the user has when choosing how to store their cryptocurrencies:

  • Leave the crypto where you purchased it. For example, on an exchange such as coinbase.
  • Send to a custodial wallet, where a third party takes control of securing your funds.
  • Send to your own personal wallet (such as Divi Wallet), and maintain complete control.

We will always champion option three, but there are different answers for everyone. So instead of telling you that you must use your own wallet, we’ll give you all the information you need, to make the best decision for yourself! Before we get into choosing a wallet, there are some considerations that are important to understand within the context of storing cryptocurrencies.

Autonomy and seed phrases

A 12 - 24 word string of words, your seed phrase is everything. It’s your failsafe should anything go wrong with your wallet. If you lose your password, or your computer or phone dies, then you’ll be able to regain access to your funds. This is incredibly important to understand. Your seed phrase should never be disclosed over the internet, or to anyone you do not trust. Giving it away essentially hands over control to anyone who has it. Treat it with caution!

Private key = control

To spend cryptocurrency, your wallet must use your private key to sign off on a transaction. If you have your own wallet, you have complete control over your private key, and therefore your funds. This is very important.

Cryptocurrency is an emerging technology

This makes it both incredibly exciting, yet less regulated than traditional markets. This presents an incredible opportunity for innovation and growth, but sadly also attracts people who wish to part people with their money. Fear not! With a simple understanding of cryptocurrency and good internet hygiene, you’ll have nothing to worry about!

Now, whether or not you ‘need’ a cryptocurrency wallet will depend on a number of factors, such as your risk tolerance. Objectively, a hardware wallet is more secure than leaving your coins on an exchange. If you trust a third party, you are relinquishing control and trusting their security. There are many benefits to having your own wallet:

  • Complete autonomy over your funds: send, receive your funds, at any time, without delay or compromise. Using your own wallet means having complete control over your finances. As crypto was intended, complete security and transparency!
  • Leveraging blockchain earning: Wallets like the Divi Wallet allow users to participate in securing networks and earning rewards, all in a non-custodial way.

So why would someone want to use a custodial solution or exchange to store crypto?

  • Ease of access for trading: people who are active traders may want to keep their coins readily available, and therefore, keeping crypto in a wallet on exchange is helpful.
  • If you lose access to your account, there are ways to get back in, as the exchange is responsible for the private keys. Some people prefer having less responsibility.
  • Many wallets do not support all currencies that a user may wish to hold. This makes custodial solutions a better option for some.
  • Until recently, many wallets were bulky and difficult to use. Many still are (for a long time, it felt like you needed to understand how to develop a cryptocurrency wallet, just to use one!). This scared many people off, and custodial solutions are usually easier to use for newcomers!

Now, if you have decided that you want to use a wallet, we have one for you!

Divi Wallet takes all of the stress and complexity out of the process. A beautiful user experience covers up the complex blockchain features, allowing you to get on with the important things, like paying back your friends, or earning rewards through our masternodes or staking vaults! Divi Wallet leverages the incredible power of blockchain, and you wouldn’t even know it. Instant global transactions, near-zero fees, and very competitive ways to earn. We think it’s the best multi-cryptocurrency wallet on the market, and it’s only getting better. Oh and it’s completely non-custodial, and always will be. Some other examples of non-custodial wallets are coinbase or exodus wallets.

But we prefer Divi Wallet, and we think you will too 😉

If you have decided that leaving crypto on an exchange is the best option for you:

  • Check their reputation: are they a well-known exchange? What security protocols do they implement? Are they insured?
  • Ensure your account is as secure as it can be. This means establishing 2-factor-authentication, either through Authy or your cellphone, and selecting secure passwords.
  • For a complete list of security tips, read our complete guide to keeping crypto safe!

At the end of the day, the only person who can adequately decide whether or not you need a crypto wallet is you. And to make that decision, you need to be armed with the right information - and how it relates to you! We hope this blog has been helpful, and that you’re in a better position to make a decision!

If you’re still searching for answers,reach out to our Support Stars, who will be more than happy to help!

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  • Wallet
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Kyle Turnbull

June 06, 2021 · 5 min read

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  • Wallet
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