4 Things Small Business Owners Should know about Crypto Wallets

A crypto wallet is basically a software program or a digital wallet which is used to store both the private and public keys which are then used to interact in numerous blockchain transactions. Crypto walletsA crypto wallet helps the user send or receive digital currency and also monitor’s one’s cryptocurrency. When looking to trade in bitcoin or any other type of cryptocurrency one needs to have a crypto wallet. Here are a few things that the small business owner needs to know about them.

  1. Types available

When you are looking to trade in cryptocurrency then you need to know the available types of crypt wallets available. There are very many types of wallet which are available and each type come with its own set of features. Getting information about the types of wallet available will help in determining what the feature you need. The types of wallet available include; exchange hosted, online wallets, Paper Wallet. Each of these wallet offer their own advantage and disadvantage so it’s important to know which one suits your needs.

  1. Security

You need to know the security of the wallet; the issue of cybercrime like hacking has become one of the most concerning issues at the moment. As an investor in cryptocurrency it’s important to take time to research the security level that the wallet has. There are wallets which are highly un-secure especially the web based wallets, but litecoin offers the best Litecoin wallet security. This means that one is able to trade without the fear of getting hacked or losing their cryptocurrencies. The people who use online wallets are always advised to backup their data because there are risks of losing of your wallet ether through computer crash or hacking.

  1. Wallet Service

The next thing that that one needs to find out is the kind of service that the wallet offers. Different types of wallets offer different kinds of service to the trader. The services offered by different wallets include, accepting coins, accepting Fiat deposits. If you also plan to be trading in multiple different types of crypto currencies then you would need multi-currency. This is the wallet which can hold bitcoin and other type of currency like altcoins. It’s advisable that instead of having just a single currency wallet it’s advisable to have a wallet which can hold multiple cryptocurrency because it helps in the diversification of one’s portfolio.

  1. Fees

There are crypto wallets which are free and there are others where charges occur. It’s important that before settling on a specific wallet one take time to analyze the fee involved with the wallet. There are some wallets where a transaction fee is incurred per every trade. The transaction fee in most case is not a lot and in most cases it’s a miniscule amount. However regardless of this you need to know if the fees that the wallet charges are fixed of are fluctuation do that you can keep track of your wallet finances. The issue is getting charges without a clear understanding the area which you being charged on.

 

About Dan Parker

Dan Parker is a freelance writer and blogger.