Australia has registered an increase in the popularity of cryptocurrencies. As per recent data, around 18.4 % of Australians owned cryptocurrency in 2020, which will rise to 29% by the end of 2021. If you plan to buy cryptocurrency, you will need a crypto wallet to keep your private keys and your cryptocurrencies safe. Here are some tips for choosing the best crypto wallets Australia for trading.
Understanding the Types of Crypto Wallets
There are mainly two kinds of crypto wallets – custodial and non-custodial. A custodial crypto wallet is a centralized form of wallet. The company offering the service holds your private key, public key, and funds. Additionally, you are given an interface to manage your crypto coins. In non-custodial crypto wallets, you have to manage everything related to cryptocurrencies you own.
As per recent data, Bitcoin is the most popular cryptocurrency in Australia, and around 21.1% of Australians own it. Crypto wallets can be categorized into four types listed below.
- Desktop Wallets
You can download desktop wallets to your computer to store your crypto keys and funds. These wallets are relatively safe as you control who has access to the PC. However, if your PC is connected to the Internet, there is a risk of someone stealing your crypto coins.
- Online Wallets
These wallets run on the cloud, which allows you to access these wallets and the funds stored inside from any place across the world. All you need is an Internet connection to access your online wallet. As per recent news, the Australian economy is warming to the idea of cryptocurrencies, and Commonwealth Bank has announced that it will allow users to trade cryptocurrencies through its Commbank app.
- Mobile Wallets
These crypto wallets run on your mobile devices. A mobile wallet allows you to store cryptocurrency on your smartphone and carry it everywhere you go.
- Hardware Wallets
Hardware wallets refer to physical devices that allow you to store cryptocurrencies. They are pretty safe, and your cryptocurrency will remain secure even when you connect it to infected computers.
Cost of a Crypto Wallet
Most crypto wallets are free to use. However, hardware wallets need a small investment. If you plan to hold crypto coins for an extended period, you can benefit by investing in a hardware wallet to store your crypto coins.
Experts mention security is an essential aspect when choosing crypto wallets, Australia. You need to look at the security features provided for the wallet. Some of the security features you need to look for are
- Meticulous user authentication
- Authentication notifications
- Safe Asset Storage
- Session logging
- Stable work under high loads
- KYC identity verification
- Transaction confirmation
Before choosing any crypto wallet, ensure the service provider has done everything possible to secure the crypto wallet. According to recent news, around 28.6% of Australians who don’t own cryptocurrency now will consider investing in cryptocurrencies if there are better consumer protections in place to guard their investments.
There are several popular cryptocurrencies in which you can invest. If you look at Australia’s cryptocurrencies popularity chart, Ripple and Ethereum rank at 2nd and 3rd position in terms of popularity. Around 28% of Australians own Ripple, while 27% own Ethereum. If you invest in multiple cryptocurrencies, you need to look for a crypto wallet with multi-currency support.
To sum up, these are tips and guidelines you should follow when choosing crypto wallets.