In the world of cryptocurrencies , it is possible to hold coins in two main ways: either on an exchange (like Binance , Coinbase , Bittrex ...), or on a wallet (like MyEtherWallet , Ledger Nano , ...). The former work in an opaque way , while the latter give us direct access to our private key .
Since exchange platforms cannot give us access to our private key, we are not able to recover our coins in the event of technical problems. If the exchange were to close for any reason (bankruptcy, hacking, ...), we would be unable to recover our money.
This was the case for the Mt. Gox exchange, which was the most popular bitcoin buying/selling platform in the world in 2014.
For this reason, it is strongly recommended to keep your tokens on a wallet, especially if you want to keep them for the long term.
Conversely, a wallet is just an interface with the Blockchain . If a wallet were to close, you could use any other wallet as a replacement thanks to your private key . There are several types of wallets, we can distinguish, for example, software wallets from hardware wallets.
Conversely, a wallet is just an interface with the Blockchain . If a wallet were to close, you could use any other wallet as a replacement thanks to your private key . There are several types of wallets, we can distinguish, for example, software wallets from hardware wallets.
The former are accessible via a web interface or an application , while hardware wallets require the acquisition of equipment such as a USB key or a hard drive (this is for example the case of the Ledger Nano S ).
Please note that a wallet may not contain all existing cryptocurrencies . Before sending a crypto, you must check that it is compatible with the wallet you want to send it to. If you buy a token with a standard, such as ERC -20, it will be compatible with any wallet that supports this standard.
Here are examples of wallets for 3 of the most popular cryptocurrencies:
Please note that a wallet may not contain all existing cryptocurrencies . Before sending a crypto, you must check that it is compatible with the wallet you want to send it to. If you buy a token with a standard, such as ERC -20, it will be compatible with any wallet that supports this standard.
Here are examples of wallets for 3 of the most popular cryptocurrencies:
- Bitcoin : In hardware, you can use the Ledger Nano S to store your coins, and in software you can use Blockchain.info .
- Ethereum : The Ledger Nano S also supports ERC-20 tokens, but if you don't want to invest in hardware, you can simply use MyEtherWallet , which provides a similar service for free
- Ripple : Another cryptocurrency that is available on the Ledger Nano S. However, the Ripple company has developed a browser-based wallet called GateHub.net