Edit on GitHubA cryptocurrency wallet is a safe and secure place where users can keep theirdigital currencies.
Remember, only a wallet that you have private keys to (a password thatprovides access to your cryptocurrency) is considered to be safe to store yourpersonal funds. It is highly not recommended to store cryptocurrency onexchanges, as this increases the risk of funds loss.
Not your keys, not your coins ‒ they say.
Cryptocurrency wallets come in different forms, from desktop and mobileapplications to hardware (USB-like) devices and paper wallets. All wallets aredesigned to enable the storage of cryptocurrency and to allow the sending andreceiving of funds. Technically, cryptocurrency is not stored in the wallet ‒its records live on the blockchain, and can be accessed using unique privatekeys, which grant the right to make transactions. Losing your private keys meanslosing access to your digital funds. That is why it is crucial to keep your keyssafe and offline.
The difference between the wallet types lies in their security and supportedfunctionality. Paper wallets are the most secure, for example, but not asconvenient in use; some wallets support a limited number of currencies, somelack certain features (like delegation, for instance).
Let's take a closer look at the pros and cons of different wallet types:
- Paper wallets — these are paper documents that contain public and privatekeys details. Such documents can be stored in a safe place and are highlysecure as they can’t be compromised via online attacks. Paper wallets are bestto use for long-term savings. On the other hand, the funds linked to paperwallets are not possible to operate online (for purchases, for example), asthey will have to be moved to other wallets first.
- Hardware wallets — these are devices that store cryptocurrencies offlineand can be connected to a computer to access the funds. Hardware wallets aresecure and their benefit lies in the balance of offline security andconvenience as they can be carried around and used when needed. Thedisadvantage of the hardware wallet is the risk of device loss or damage.
- Online wallets — these wallets can be commonly set up using a browser.They work through the internet and store cryptocurrency in a certainapplication or software. This is convenient as users can send, receive, anduse crypto as in any other bank account or payment system. However, onlinewallets are more open to security issues and can be compromised or attacked.Search online for the most secure and suitable wallet; always keep your keysoffline and use 2FA verification where possible (giving preference to securitykeys over SMS verification).
- Desktop wallets — these wallets can be downloaded on a personal computer.They are secure and convenient in use. Before choosing the best-matchingsolution, it is important to ensure that your computer meets softwarerequirements and that the wallet supports the cryptocurrency you would like towork with. Desktop wallets are easy to use, but are not as flexible orportable.
- Mobile wallets — these are wallet applications that can be installeddirectly on a smartphone. Such wallets are simple to install and use and is agood additional option for cryptocurrency storage.
Where to store ada?
There are different wallets that support ada. Take a look at some possible options below to choose the one that matches your needs best.
Daedalus
Daedalus is a full node, desktop wallet. Daedalus downloads a full copy of theCardano blockchain and independently validates every transaction in its history.This provides maximum security and completely trustless operation, withoutcentrally-hosted third party servers. It supports all major desktop operatingsystems and provides the following features:
- easy installation with one-click setup of bundled Cardano node
- locally stored wallets and encrypted private keys, not shared with third-partyservers
- trustless operation with locally running full Cardano node which independentlyvalidates full transaction history of the blockchain
- supports Cardano network by participating in the Ouroboros protocol
- wallet backup and restoration using mnemonics
- support for staking and delegation
- support for voting
- complete autonomy without reliance on third-party servers and services
- paper wallet generator for offline storage of funds
To install Daedalus, follow these steps:
- First, readsystem requirements.Please note that Daedalus is a resource-intensive application. If you wantto manage ada quickly and easily you can try Yoroi or AdaLite wallets.
- Visit the official Daedalus website.
- Followthese installation instructions.
Hardware wallets
Here is a list of hardware wallets to consider for storing and transacting withada:
- Trezor Model T
- Ledger Nano S Plus
- Ledger Nano X
Seehow to use hardware wallets with Daedalus.
Other options
