26th October 2020

How To Protect Bitcoin, Ethereum, Ripples And Which Wallet To Choose

If on the one hand it is already a bit complicated to understand the mechanism that allows Bitcoins and another cryptocurrency to be “minted”, it is no less understandable the discourse on “where to store our Cryptomonete”.

As long as we put our paper Euros in our wallets or purses, so also Bitcoins and other cryptocoins, waiting to be spent or exchanged, must be digitally stored in a safe and secure place: electronic eWallets (also called Bitcoin wallets).

eWallet (Cryptocurrency portfolio)

If we decide to turn to the currency market to buy Bitcoins or other cryptocurrencies, then we necessarily need an eWallet in which to store our cryptocurrencies.

Technically, eWallets (ewallet) are used to store the “private keys” through which to access Bitcoin, Ethereum, etc… related to our funds.

Without an eWallet, therefore, it is not possible to receive, exchange or spend Cryptocurrency.

An eWallet is nothing different from a common online bank account, containing unique passwords, secret keys and encrypted codes through which the transactions of our Bitcoin, Ethereum, Litecoin etc. are authorized from time to time …

As we will see there are various types of eWallet, each of which fulfills the same function, that is to store the “keys” to access our Bitcoin funds.

Before going to review closely some of the main “eWallet” in circulation, let’s briefly explain the differences that exist between the three different types of portfolios (Hardware, Web and Desktop).

When we talk about electronic wallets (eWallet), we refer to an electronic container in which are stored the “credentials” of access to the Cryptocurrency network (alphanumeric codes) necessary for the transaction of the Cryptocurrency itself.

These credentials are nothing but alphanumeric strings formed by more than 30 characters and digits (private keys), and are used to represent the amount of Cryptomonete held at that time.

For obvious security reasons, therefore, the “private keys” must be kept in a safe place (in the wallets) and must also be protected by passwords to prevent theft or loss could result in the total loss of our money.

As said, to jealously preserve our Cryptocurrency we can choose between three different types of Wallets: Hardware, Web and Desktop.

Let’s see briefly what are the main features of these wallets, and highlight what advantages in terms of computer security they offer us.

Hardware, Web or Desktop: 3 Different Types of eWallet

To store, exchange or accept Bitcoin, we can choose to rely on 3 different types of eWallet:

  1. Hardware Wallet;
  2. Web Wallet;
  3. Desktop Wallet.

Three types of eWallet aimed at the same function, but different for features.

The ultimate purpose of any eWallet, is to be able to represent a safe and highly protected place to store in some cases large amounts of Bitcoin, which as we know at today’s exchange represent a lot of money.

Hardware Wallet

Hardware wallets are devices similar to very common usb flash drives (the ones we use to store our files), but in reality they are devices designed to store cryptomoneta (Bitcoin, Ethereum etc …) in an absolutely safe way.

In order to be used the Hardware wallets need to be connected to a computer or other device able to read their contents (Laptop, Smart TV, Tablet, etc, etc).

This type of Wallet has a very high degree of computer security, and we believe it is the best choice to make to store your Cryptomonete.

Without a shadow of a doubt this type of Bitcoin wallet represents the best in terms of security and convenience of use.

A Hardware type Wallet, is a device very similar to a common Usb key.

The great advantage of a Hardware Wallet is that they are stored “offline” and connected to the Internet only when we decide to make operations with Bitcoins.

Hardware Wallets represent a valid solution to effectively store our Cryptocurrency Cards away from Hackers, Viruses or Malware created specifically by the evil intent of the web.

In this perspective we point out the names of Trezor, Ledger and KeepKey, among the most used Hardware wallets on the cryptocurrency market and the Bitcoin market in particular.

Trezor

Trezor is an excellent “private keys” storage and storage device for Bitcoin, Ethereum (+ all ERC-20 tokens), Ethereum Classic, ZCash, Litecoin, Namecoin, Dogecoin, Dash and Bitcoin Testnet in our possession.

As safe and reliable as the previous one, Trezor uses a digital signature system that does not require an Internet connection to work.

Trezor does not require the use of “username” and “password” to work, which makes any attempt at external hacking particularly difficult.

KeepKey

In addition to Bitcoins, KeepKey supports other crypto-coins: Ethereum, Litecoin, Dogecoin, Dash and Namecoin.

KeepKey comes with a large and convenient display that makes using this device particularly easy.

Safe and reliable, we think KeepKey is a little larger than the other Biotcoin Wallets reviewed earlier.

However, what matters most when it comes to Bitcoin storage, is that you can have up-to-date devices that are in line with current computer security protocols.

KeepKey The Simple Bitcoin Hardware Portfolio

Hardware portfolios are connected to the network only when transactions have to be made, which is why they are not easily attacked by the evil intent of the web.

Hardware Wallets are also safe to the extent that we lose or damage the device.

It will be enough, in fact, to periodically make a backup of the data contained in the device, and be able to restore the “keys” of access to our cryptocurrency.

In summary, a Bitcoin wallet of hardware type is a device that should be connected to the PC only when we decide to make Bitcoin transactions (purchase, exchange or receipt).

Bitcoin Hardware wallets are secure and “secret keys” are stored “offline” away from prying eyes and hands.

It is important to periodically “back up” your data so that we always have the opportunity to restore its contents (theft, loss, damage, etc, etc).

Desktop Wallet

Desktop wallets, finally, are nothing but software through which we can store and manage our cryptomonete directly on our PC, smartphone or other Android system or iOs.

These wallets are structured in such a way that anyone is able to store their “private keys” in their computer, and also offer users the opportunity to make transfers and exchange operations with many types of cryptocurrency (Ethereum, Litecoin, Dogecoin, Dash and Namecoin).

A desktop wallet also called “Desktop Wallet” is represented by a software called “Client”, which has the task of providing users with a clear and simple graphical interface through which to manage Cryptomonete transactions.

A “Bitcoin Client” for example has the task of storing and protecting the “secret keys” needed to manage Bitcoins.

Many of the companies that develop Bitcoin portfolios, Ethereum, etc. … of “Hardware” and “Online” type seen above, also offer specific Apps and software through which we can transform our computers into electronic platforms capable of receiving and storing Bitcoin.

Although from the point of view of computer security this is still a less secure choice than the previous ones, many people prefer this choice.

Electrum Bitcoin Wallet

Electrum is one of the best known Bitcoin wallets of Desktop type that you can download for free from the internet.

An Open source software really easy to use, through which you can freely manage the transfer and exchange of Bitcoin.

The operation of Electrum goes through the creation of a seed, that is a secret “password” of 12 words that are the identifier of our Bitcoin account number.

The “seed” allows us to access the Bitcoin account at any time, in any place and especially from any device we want (smartphone, tablet, etc, etc,).

It is important to keep the “seed” (secret password) away from prying eyes, possibly on a piece of paper or diary.

Important: never store the “seed” inside your PC or Smartphone.

To install Electrum simply go to the official page and select the operating system of the device on which we will download it.

Electrum is distributed for all operating systems: Windows, OSX, Linux and Android.

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