Published April 24, 20228 min read

Altcoin Wallet: How to Choose the Best

CoinMooner Team

The cryptocurrency ecosystem offers a great variety of altcoin wallet solutions for storing and trading your crypto. What is their functionality and how do they differ from each other? Let’s figure it out.

What Is Altcoin Wallet?

Having a wallet for altcoins allows you to become an active participant in numerous interactions throughout the digital environment. Using altcoins, you can acquire goods and services or pay commissions and rewards.

Main Features

Altcoins exist only in a blockchain system, simply losing all their value outside of it. Despite this limitation, they are completely safe in their digital environment. This happens because altcoins aren’t really kept in wallets. All your crypto assets will be distributed in the blockchain system. However, you can choose among different ways of managing your crypto since wallets for storing altcoins can take various forms:

browser

separate device

software program

paper

With regard to the owner’s control over its connection to the network, an altcoin wallet can also come in different forms:

A hot wallet for altcoins is connected to the Internet on a permanent basis.

Warm wallets are a kind of middle ground between permanent access and total control. They are special programs installed on your computer that has access to a website where your crypto is stored. They have better protection unless your computer is broken or gets some kind of virus.

For the cold wallets, the internet connection is controlled by the user exclusively. Sounds great, but if you forget your private key, no one would be able to help you return your money.

What Is It Used For?

The main purpose of using wallets for altcoins is interaction with the entire blockchain ecosystem. In the process of this interaction, they perform the following functions:

Storing cryptocurrency. Along with the crypto, all records of transactions made by the user are also stored.

Generating information required for making blockchain transactions

Creating an address to which assets can be delivered

Types of Browser Wallets

Browser altcoin wallets were offered for storing coins and making crypto transactions. With this type of wallet, you have an external provider who creates a digital infrastructure necessary for storing altcoins online. As such, cryptocurrency is not stored there. The provider just keeps public and private keys to your resources. A suitable browser wallet should be selected depending on the kind of altcoins and the system you are using.

Web wallets are more vulnerable than hardware or desktop wallets, but they are easier to access. Therefore, it is better to have different types of wallets for storing altcoins. "Hot" web wallets should be designated to store small amounts of altcoins you need for quick transactions.

When choosing between web wallets, pay attention to the following two types of storage:

HTTPS-based solutions are more secure since they use a special kind of encryption covering all data circulating between a website and web browser.

If the address of a web-storage service starts with HTTP, this wallet for altcoins will not be secure enough.

Choosing Best Wallet for Altcoin: What to Look For

The contemporary level of crypto infrastructure development allows users to choose among different types of storage for altcoins in the blockchain. Match your choice with what you will spend your crypto on and look for the following characteristics of the best crypto wallets for altcoins.

PIN to Access

Concerning the provider's ability to access your wallet, you can choose among custodial and non-custodial wallets:

Custodial: the provider has access to your private key. Such an option is essential in case you lose it. However, it makes your assets more vulnerable.

Non-custodial: the user has total control over their assets and keys, which increases the privacy features of the wallet. On the one hand, it makes the resources more secure. On the other side, no one is to blame and ask for help if the user loses the keys. The provider usually provides a corresponding disclaimer.

If you decide to keep your altcoins in cold wallets for storing altcoins, you will be provided with an additional PIN just in case you lose it.

2-factor Authentication

The 2FA option assumes that each time you are going to conduct any operation with your wallet, you need to confirm it. To do that, an additional code will be sent to your email or smartphone. Choose a wallet with the 2FA function, especially if you are going to use a cloud-based solution.

Easy-To-Use Interface

Some providers try to put as much functionality as they can into their services. Interfaces become overloaded and cannot be used by clients without deep knowledge of the subject. Select interfaces you can understand. Moreover, don’t use services that are not translated into your native language since you can miss vital details.

Variety of Supported Coins

Monocurrency wallets for altcoins allow you to store just one type of asset. They are not very popular since the number of cryptos is permanently increasing. To manage tens or hundreds of wallets is a real challenge even for the biggest crypto fans.

Multicoin wallets are the best wallets for altcoins since they store a whole portfolio of cryptocurrencies of your choice.

Payment & Fees

Each crypto storage service has its own payment policy. For example, Binance offers essential discounts for the first and second-year users of BNB. Some crypto exchanges prefer to charge a fee for depositing, while others choose to take a fee for withdrawal of crypto. In some cases, it also matters whether the money comes from a credit card or direct deposit.

Compatibility

It is also important for a wallet to be compatible with the operating system installed on your computer or mobile device. Compatibility with your hardware wallet for the most secure cold storage is also essential.

TOP Wallets for Altcoins 2022

The most rational decision when selecting the best crypto wallet for altcoins is to stick to the market leaders. Here is a list of possible options.

Coinomi

The best altcoin wallet is designed for mobile devices with Android and iOS operating systems.

A wallet modification for desktops has been developed recently.

Support of 507 digital assets is provided.

No KYC identification mechanism is used for the protection of users’ anonymity.

A built-in cryptocurrency exchange option is available.

Jaxx

The ability to choose between mobile, browser, and desktop versions

Cross-platform opportunities

Option to convert crypto directly on the platform

Security protection with a PIN code

You can copy the keys and store them offline

Exodus

Designed with new crypto users in mind

No fees for using this best crypto wallet for altcoins

Built-in trading function

The possibility of restoring access to cryptocurrency

Agama

Designed for open-source cryptocurrencies

Three security modes for managing coins

Convenient HD feature that protects from re-using already used addresses

SEED generator that allows restoring private keys easily

Cryptonator

Minimalistic and intuitive interface

Easy fiat-to-crypto exchange directly on the platform

Favorable exchange rate

High level of security for your funds with two-factor authentication and the reliable HTTPS protocol

Trust Wallet

Possibility to use Visa and MasterCard for purchasing altcoins

Monthly added new cryptocurrencies

Free altcoin wallet services

Possibility to increase your funds by staking

Coinbase wallet

Designed for managing funds on a mobile device via an altcoin wallet app

Possibility to trade via DEX platforms

Numerous bonus programs

Different activities rewarded in crypto

Tips to Keep Your Crypto Safe

To deprive crypto owners of their assets, scammers invent all sorts of schemes, from fake crypto storage services to calls from sham "personal assistants". Pay attention to the following tips for safe storage of altcoins:

Owners of custodial wallets for storing altcoins often face the threat of phishing. By taking possession of a private key, fraudsters gain access to assets. Therefore, leave some funds on platforms that allow you to open non-custodial wallets.

Hardware wallets minimize the risk of losing funds when storing altcoins. They are expensive and less convenient to use than online versions. But if you have a large amount of altcoins stored, it is important to play it safe.

Do not respond to suspicious messages related to the management of your wallet for altcoins, even if they come from a person you know. It’s better to call back and check it.

Give preference to two-factor authentication.

Install high-quality antivirus programs on your equipment to avoid losing altcoins not only on desktop computers but also on mobile devices.

Wallets for Beginners

If you are just entering the world of crypto, opt for the most trusted platforms, even if they have higher maintenance and transaction fees. Losing something small, you save more.

You should not open wallets for storing altcoins on platforms with a complex interface designed for advanced traders. There are platforms aimed specifically at beginners. Take advantage of their services at the initial stage.

It would be good practice to have two wallets for altcoins on different resources and test the mechanism by making transactions between them.

Altcoin Wallet App

A mobile application for managing your funds is very convenient. You can use such a wallet at any time since a mobile phone is already an integral part of our everyday life. Moreover, the device will be under your permanent control, so it will be harder to steal your personal data from the wallet app for altcoins. However, you need to approach it carefully:

Protect your mobile phone from viruses with antivirus software.

Determine which type of storage you trust more: cloud, internal, or hybrid.

Choose an app that is easy to navigate.

Summing Up

The safety of your assets depends on how carefully you approach choosing the best wallet for altcoins. An experienced trader invests enough time to compare different types of wallets and select the most suitable option. It would be better to diversify risks and store altcoins in both online and offline wallets. You also need to be careful about the security of your private key. Try to find the storage method that is most convenient for you personally.

Frequently Asked Questions

What Is a Crypto Wallet for Altcoin?

A crypto wallet for altcoins is a special solution for storing your private and public keys for all altcoins transactions. It can be paper, browser, software, or hardware-based.

How to Choose Suitable Altcoin Wallets?

The choice of a suitable wallet depends on the amount of your coins and the operations you are going to conduct. Pay attention to the safety of your altcoin wallet, the simplicity of its interface, and general functionality.

Are Wallets for Altcoins Safe to Use?

It depends on the mechanisms of protection applied by the provider. For the safety of your assets, choose wallets with HTTPS protocols, 2FA authentication, and PIN codes.

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Contents

What Is Altcoin Wallet?Choosing Best Wallet for Altcoin: What to Look For TOP Wallets for Altcoins 2022 Tips to Keep Your Crypto Safe Wallets for Beginners Altcoin Wallet App Summing Up Frequently Asked Questions

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