Cryptocurrency wallets are similar to a bank account
An easy way to think of a cryptocurrency wallet is to compare it with a bank account. It is where your cryptocurrency is stored. Similarly, a wallet address is very similar to a bank account number. It is used to send the cryptocurrency to your wallet. Every BitPrime customer needs to set up a wallet; however, the wallet you use will depend on the crypto you wish to purchase.
There are two different types of wallets: hot wallets and cold
Hot wallets are connected to the internet and often accessed via your web browser, or by opening an application on your desktop or mobile device. There are some wallet providers, such as Coinbase, that hold your private keys on your behalf. We recommend using wallet providers that allow you to control your wallets private keys. If something happens to your wallet provider or your device is lost or broken, you can restore the wallet provided you control the private key (and have your passphrase).
What hot wallets do we support?
We recommend using several hot wallets that support various cryptocurrencies. They are as follows:
– Exodus: Available on desktop and mobile devices. Supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and many others. Click here for a list of all supported cryptocurrencies.
– Jaxx: Available on desktop and mobile devices. Supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and many others. Click here for a list of all supported cryptocurrencies.
– Toast wallet: available on desktop and mobile devices. Supports XRP (XRP) only.
– Trust wallet: available on all mobile devices: Supports all Ethereum (ETH) and all ERC20 tokens. See this article for more information on ERC20 tokens.
The recommended method of storage is in cold wallets, which stores your cryptocurrency offline. Cold wallets can come in two different forms: hardware wallets, or paper wallets. Hardware wallets are physical devices that plug into your device before interacting with the blockchain.
Paper wallets are merely a piece of paper with a private key and wallet addresses printed. A paper wallet is cannot be hacked, though it is susceptible to damage or loss. We do not recommend using a paper wallet to store your cryptocurrency unless you are confident you know what you’re doing.