Numerous exchanges and wallet providers have flooded the crypto market in response to the increasing demand from users for new ways to spend, trade, and store their cryptocurrencies in Nigeria. As a result, cryptocurrency traders now have a wide range of alternatives for maintaining their holdings.
But with so many different kinds of crypto wallets available, it can be challenging to choose which set of characteristics makes the most sense for your particular crypto usage style. We’ll describe the various wallet kinds in more detail below, which should enable you to make a more informed choice.
What is a Crypto Wallet and How Does it Work?
A crypto wallet’s function is to enable users to communicate with the blockchain using either software or specialized hardware. Considering that they aren’t actually used to store cryptocurrencies, the moniker “wallet” may be a little misleading. Rather, wallets act as a middleman between the user and their assets, which “live” on the blockchain.
A user may monitor, manage, and start transactions with their cryptocurrency using a wallet. They come in a variety of shapes and sizes, from simple online web wallets provided by top cryptocurrency exchanges to more secure and technically advanced offline, hardware-based wallets.
Keys, which are required to access a user’s crypto assets, are what all wallets share. One public key and one private key are generated when a wallet is created. These extensive alphanumeric sequences may look similar, yet they serve very diverse purposes.
Similar to how an account number appears on your bank account, a public key is like a bank account number in that it may be freely shared with anyone who wants to pay you cryptocurrency. On the other hand, a private key or log in details should be carefully secured since it functions as the PIN number for your bank account. That security’s possession gives the holder total control over your cryptocurrency assets.
To transmit cryptocurrency, a user enters the public key (or log in details) of the recipient wallet and the desired amount, whether it be to pay for a future vacation or purchase a new watch. When a user wants to receive crypto instead, the procedure is reversed. The private key must be used to “sign” a transaction every time cryptocurrency leaves a wallet. Depending on the type of wallet you use, that important step takes several forms.
The private key here refers to keys, login passwords, fingerprints or any other form of security used to protect your crypto wallet.
Types of Cryptocurrency Wallets
There are two main types of cryptocurrency wallets: Cold and Hot wallets. Let’s take a dive through what makes them different and their various types.
A cold wallet is a cryptocurrency wallet that isn’t online, making it impossible for hackers to access it. The cold wallet, which is also known as a “hardware wallet” and an “offline wallet,” uses suitable computer software to store the user’s address and private key.
A hot wallet is a cryptocurrency wallet that is always linked to the internet and cryptocurrency network. You can see how many tokens you have available for use and transfer and receive cryptocurrencies using hot wallets.
Taking a step back, it’s crucial to understand that wallets are split into two distinct categories: “Hot” and “cold” wallets, before digging into the many types of crypto wallets and how they operate.
Any cryptocurrency wallet that is online is referred to as a hot wallet. The majority of crypto wallet types are in the “hot” category since they are typically simple to use. Hot wallets are great for convenience because they are always on, but that same characteristic also makes them more susceptible to hackers. As a result, keeping sizable sums of cryptocurrency in a hot wallet is not advised.
As you might have imagined, offline or unconnected wallets fall under the category of cold wallets. Since the blockchain can only be accessed online, cold wallets are thought to be extremely secure and nearly immune to hackers. Since cold wallets normally demand a little more technical expertise, they are usually best suited for more seasoned users or people with substantial sums of assets.
Types of Cold Wallets and Best of it
Most people choose a cold wallet because they would prefer to be in charge of their own account security. Hardware and paper are the two most common forms of cold wallets, and they lie on different ends of the technological spectrum. As low-tech a solution as you can find is a paper wallet, whereas hardware wallets frequently have highly advanced high-tech components. Both are thought to be very secure methods of protecting your cryptocurrency.
Best Cryptocurrency Wallet In Nigeria (Paper Wallet): Although some people might prefer the good old paper and pen method, making your own safe, printable paper wallet is also really easy. Websites like WalletGenerator.Net and BitcoinPaperWallet.com are recommended sites you should consider when getting a paper wallet.
Best Cryptocurrency Wallet In Nigeria (Hardware Wallets): A hardware wallet provides safe private keys stored in a variety of formats for individuals who would rather use a more advanced solution. These tangible objects, which frequently resemble USB thumb drives, remain inactive unless connected to a computer or mobile device. Some best-recommended Hardware wallets are Ledger Nano S, Trezor Model One and Ledger Nano X.
Types of Hot Wallets and Best of it
Hot wallets are frequently the preferred option for individuals who prefer to have their cryptocurrency close at hand and ready to use. Hot wallets come in a variety of forms, each having possible advantages and disadvantages depending on your needs.
Best Cryptocurrency Wallet In Nigeria (Desktop Wallet): Private keys are safely saved on a user’s computer hard disk by desktop wallets using encryption. Some highly recommended desktop wallets are Exodus and Electrum.
Best Cryptocurrency Wallet In Nigeria (Web Wallets): Most crypto novices choose to use Web wallets since it is simple to use. It supports multiple transaction types (buy, sell, swap etc.) and account security is contracted out to a reliable third party (exchange, etc.). Metamask and Coinbase are the two best web wallets to store your cryptocurrency in Nigeria.
Best Cryptocurrency Wallet In Nigeria (Mobile Wallets): With their phone and a working internet connection, users may swiftly and securely send or receive cryptocurrency using mobile wallets.
Mobile wallets are convenient for crypto payment, as well as sending and receiving. It is extremely practical and simple to use, one of the simplest methods to use cryptocurrency in Nigeria.
The best Mobile Wallet to sell cryptocurrencies in Nigeria is Breet. Some other notable wallets are Trust and Paxful.
What Cryptocurrency Wallet In Nigeria Should You Choose?
Take stock of your goals and consider how much you value features like security and ease of use before choosing the right crypto wallet for you. Consider how convenient you want your cryptocurrency to be, and how much security you’re ready to give up for it. This checklist on how to find the best cryptocurrency wallet in Nigeria will guide you in picking the right choice. Most people analyze that formula while deciding which wallet is best for them.
In my experience, the best cryptocurrency wallet in Nigeria is Breet. Breet offers me a maximum supply of comfort, safety and assurance with my cryptocurrency transactions. Breet is a revolutionary new way to convert and withdraw your crypto coin without the need for peer-to-peer trading or any third-party agent. Meaning, that you will not have to face fraudulent issues with peers or erroneous transactions when they sell Bitcoin in Nigeria or any cryptocurrencies with Breet.
With their 24/7 customer support team, I am able to contact them at any time if any issue arises with my transaction (which seldom happens), whether day or night.
Additionally, I do not worry about fees and unnecessary and annoying charges being made on other wallets. Breet is completely free. There are no additional fees, including processing, receiving, or withdrawal fees. Breet will never charge you. For many Nigerian cryptocurrency dealers, Breet’s free usage eliminates our problem with expensive and irregular fees.
And the best of Breet is the swiftness in crypto transactions. I am able to quickly sell cryptocurrencies in less than five minutes, straight to my Naira bank account without any worries. Completely safe and reliable! With their new automatic settlement feature, I do not have to do anything. Once I receive any cryptocurrency, it automatically converts to Naira and transfers to my account instantly.
Again, Breet is arguable, the best cryptocurrency wallet in Nigeria. So, what are you waiting for? You should download the Breet App now! It is available on all iPhone and Android devices.