Crypto purse for the longings

Started by fizzer, Aug 04, 2022, 03:31 AM

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fizzerTopic starter

It is extremely troublesome for people who are not covered by crypto fever to understand the specifics of blockchain technologies. Against this background, it is very easy to become a victim of all kinds of scammers.
I still remember the narrative of a married couple who bought metal bitcoins in the city market. It is all the more interesting that all this "non-material crypto sphere" can be felt with your hands and even loaded into your "iron wallet".

Cryptocurrency does not gather dust just like that on the computers of its happy owners. It exists in the form of a distributed registry of records (blockchain) stored in parallel by many persons. But how to get access to this very blockchain?

One of the options for a crypto purse is an access terminal that confirms operations with a crypt written in it. With it, you can make a transfer and exchange one cryptocurrency for another.

A bit of history

It is believed that Satoshi Nakamoto, the mysterious and once anonymous father of bitcoin, was involved in the creation of the very first bitcoin wallet. It is said that thanks to his code, a protocol called Bitcoin-Qt was created, which later turned into the first bitcoin purse.

It was a full-fledged desktop client for making transactions and storing currency. Subsequently, Bitcoin-Qt evolved into Bitcoin Core. It is still in use today. But for an ordinary user, it is of little interest, since it requires downloading the entire data chain to the computer and is relatively troublesome to use.

In 2014, a solution called Trezor appeared on the market. It became the first hardware purse for storing bitcoins. But about him a little further.

In essence, a crypto purse is a bundle of private (closed) and public (public) keys. Private key - confirms transactions, sending and receiving crypto. The public key is used for identification when sending and receiving transfers.

Types of crypto wallets

Crypto wallets are conditionally divided into custodial and non-custodial.

A custodial wallet is a purse that is registered, for instance, on a crypto exchange or in some other intermediary service. It is convenient to manage from the web interface, the password can be quickly and easily recovered, but at the same time the exchange knows your identity and has access to assets.

By choosing such a wallet, you sacrifice anonymity and security in favor of convenience. The downside is that the intermediary can block assets by court order or other reasons. Regrettably, there are already enough examples of this. Money can also be lost as a result of a hаck or an accident on the service infrastructure.

Non-custodial purse - assumes that all keys and passwords are only with you. If one day you forget any of this, you can say goodbye to your money.

Also, crypto-wallets can be divided into purses designed for use on a PC ("hot wallets") and hardware wallets-devices ("cold wallets"), designed exclusively for storing cryptocurrency data and not having a stable connection to the Internet.

Desktop wallets are similar to a banking application - with their help you can get and send transactions, view the balance, but at the same time you do not participate in the blockchain in any way. Full-fledged desktop purses work as part of the blockchain. These wallets require the entire Bitcoin blockchain to be downloaded to the computer at all times. And it weighs a lot - now it is more than 350 GB, and this volume is constantly growing.

Hardware wallets look like a simple flash drive. It is believed that they are more reliable and suitable for long-term storage of bitcoins and other cryptocurrencies.

The devices do not have a permanent connection to the Internet, and they can be connected to any computer when access is required. However, you need to buy hardware purses, while all other types of wallets can be used absolutely free.

The range of hardware wallets is impressive. Let's look at the most interesting devices.

Trezor - appeared in August 2014 and became the first hardware purse on the market. Trezor One is an affordable model recommended for beginners in the world of cryptocurrencies. The purse is compatible with a computer and a smartphone and supports Windows 7 and above, masOS 10.11 and above, Linux and Android operating systems.

Today it can be bought in any exchange at a price of about $200. Ascetic colors - white and gray. In the box, everything is also modest.

In addition to the device itself, the kit includes two cables of different lengths, a bunch of stickers, as well as a blank form for code words (the so-called "recovery seed").

Inside the case is a CPU ARM Cortex-M4 processor @ 168 Mhz with custom software, with an LCD display with a resolution of 240x240 pixels. The software is based on Open Source.

To implement feedback with the user, two control buttons are provided.

Ledger is considered one of the leaders in its segment, having advantages in multicurrency, good protection and a fairly decent variety of models.

The price range is from $150 to $3000. For $200, you will be offered a device with a built-in battery for battery life, an improved display with a higher resolution and Bluetooth. In addition, you have an increased memory capacity, allowing you to download up to 100 applications of various cryptocurrencies at the same time.

SafePal S1 is a Chinese hardware purse. It is available at a price of about $220. Externally, the device resembles a thick bank card. The gadget supports about 30,000 types of crypto assets (!) And has a camera. Of the minuses - closed source code. Although this is a polemical question and is absolutely not a sentence.

Perhaps the biggest drawback of SafePal is that the material the device is made of is quite fragile. But you need to understand that this option is one of the cheapest hardware wallets on the market.

Another novelty that has yet to earn the trust of crypto enthusiasts is the solutions of the Swiss company Tangem.

Tangem Wallet is a hardware multi-currency purse for over 4,000 different cryptocurrencies with support for DeFi (decentralized finance systems, that is, a set of blockchain-based applications).

It differs from competitor gadgets by a higher level of certification according to the EAL6 + standard, IP68 water protection and a non-standard approach to the seed phrase. She's just... not there. Instead, the developers suggest using three cards at once. Lost one, no problem. The one who finds the lost one will still not be able to withdraw funds, and you will reset the password for the remaining two and set a new one.

Tangem Note is almost the same, but without DeFi and with support for only one cryptocurrency. Quite convenient for beginners who are satisfied with the classic BTC or ETH. Or in order to give someone a card as a gift or payment for some service.

Map management is intuitive. We install the Tangem Note Ethereum application on your smartphone with iOS or Android, put the card on the phone and go ahead, activate the purse.

hot wallets

Actually, we are talking about free software solutions installed on a PC or smartphone. Unlike cold wallets, they require a constant connection to the Net, and therefore the risks of attacks from all kinds of intruders are much greater. When choosing, the recommendations are simple: choose solutions already known on the exchange. The main thing is to download them in the right and reliable place.

Trust Wallet is a fairly popular crypto purse. It supports 53 blockchains and over 160,000 coins and tokens. Inside, currency exchange, storage of NFT tokens, and interaction with DeFi protocols are available. Moreover, the wallet is quite simple and understandable for beginners.

Another hot purse is called Exodus. It has a rather nice interface, also a built-in currency exchanger, support for more than 100 different tokens and coins.

For Google lovers, there is a Metamask browser purse . It is presented as an extension for Google Chrome, as well as in the form of mobile applications for iOS and Android. The main disadvantage, probably, is the inability to work with "bitcoins".
How to choose your "crypto wallet" ("cold wallet")

    It is better to focus on the brand of an already well-known manufacturer;

    It is advisable to purchase devices on the official websites of manufacturers;

    If you bought the device online, you should make sure that all stickers, seals, holographic images, etc. are in place;

    An iron device is preferred over a plastic one;

    The presence in the purse of its own system with cryptographic algorithms is better than pop Windows.

Security Tips

    Don't store all eggs (money = crypto) in one place and in one currency.

    Two-factor authentication - will protect your sleep and funds(especially on withdrawal transactions).

    To work with crypto, get a separate mailbox and a secure bunch of passwords.

    Don't let your guard down. Look at the addresses for all transactions, as well as URLs and site certificates. Don't click on questionable links.

    Do not be lazy to regularly change passwords for services and mailers related to your funds.

    Do not neglect antiviruses and software updates.

    Make backups of hard drives.

    Some store parts of the password with different people and even in different parts of the world.

In conclusion, I would like to tell you one instructive narrative, which usually makes everyone feel a little hurt. Once upon a time there was a programmer in the USA with the usual name Stefan and the no less common surname Thomas.
At the dawn of the appearance of bitcoin, he acquired 7002 coins. Stefan wrote down the password to his piggy bank on a piece of paper that he once lost. He also failed to remind the cherished combination.

As a result, about 245 million dollars hung in a jar with numbers at the "lucky one". Shamans, hypnotists and an iron on the chest (an artistic exaggeration is used in that place) did not stir up Thomas's memory. Sits. Sad. Remembers.

According to Chainalysis, out of the 18.5 million bitcoins currently in existence, about a fifth (20%) is stored in wallets that their owners do not have access to for one reason or another. They could be lost, users could just forget about them, or, in the case of Stefan Thomas, lose the keys to them. In total, the value of such inaccessible bitcoins is in the range of $140 billion.


I think that all these crypto wallets are from the evil. We assemble a separate system unit from junk, but with a terabyte HDD or better SSD, put Linux and native Bitcoin Core there, synchronize the blockchain for some days - and we use this, keeping the blockchain up to date (turning it on every day or not turning it off at all).
The most secure solution. And it is useful for the network when there are many full nodes. I wonder if there are detailed video guides on how to import/export keys and generally use that main client correctly?


software crypto wallets

Software wallets work through a browser or are installed on a computer and smartphone.
User information and transaction data can only be stored on the developers' server, but more often everything is downloaded to the device of the owner of the crypto wallet.
These are "hot" type wallets with a Network connection. With their help, you can conveniently and quickly carry out operations with funds, but they are more vulnerable to attacks by intruders. Therefore, it is better not to place large amounts on them.

Trust wallet
The best crypto wallets: Trust wallet
This crypto wallet is useful for working with Binance exchange coins, but it is also compatible with a wide range of other currencies. For security, you can use two-factor authentication, Google authorization, as well as verification by SMS or email. Trust Wallet places most of its currency on cold storage servers, from where it is quite difficult to steal funds.

You do not need to pay any commission for a wallet or for currency exchange. But a percentage is charged on transactions in blockchain networks. Through Trust Wallet, you will also be able to exchange cryptocurrencies, and for this you will not need to withdraw them to any third‑party platforms.
Using the Wallet Connect function, you can link your wallet to sites integrated with it and quickly log into accounts or confirm transactions.
There is an opportunity to buy cryptocurrencies in Trust Wallet. At the moment, the option is available through MoonPay and Simplex services. But you can, of course, purchase cryptocurrency anywhere and just send it to your wallet.
The service works only through mobile apps on Android or iOS, there is no option for a computer.


Hardware wallets are a good solution up to a point. They are relatively easy to modify and compromise the batch before selling. To do such a manipulation with a computer is a difficult task. And it is not known whether a specific laptop will be used to work with cryptocurrency. But as for a hardware wallet, you can be sure that sooner or later it will be used to store cryptocurrency. Manufacturers of hardware wallets are looking for ways to solve this problem - for example, apply security stickers. But there are dozens of ways to overcome this.
However, it should be noted that Ledger and Trezor devices are indeed designed with security in mind.