❖ What are crypto wallets?
A crypto wallet is defined as a physical medium, device, software or service that stores the public/private keys of digital currency transactions. For example, a user buys Bitcoin. However, since Bitcoins do not have a physical form, how will users hold these Bitcoins securely? Therefore, a crypto wallet will help store cryptocurrencies and digital crypto assets.
There are many different types of cryptocurrency wallets, but they all share some basic features. A crypto wallet contains a public key and a private key. The public key is used to send cryptocurrencies to the wallet, while the private key is used to access the cryptocurrencies in the wallet. Cryptocurrency wallets can be software-based, hardware-based, or fiat-based. Software-based wallets are usually free and easy to use, but are less secure than hardware-based wallets.
Hardware-based wallets are physical devices that resemble USB drives. They are more expensive than software-based wallets, but offer better security because private keys are stored offline. Paper wallets are simply printed copies of public and private keys. It's the least expensive option, but it's also the least safe.
❖ Types of crypto wallets
• Hot wallets
Unlike hardware wallets, software wallets are non-physical programs that are downloaded onto computers. Moreover, these wallets are encrypted and you own your private keys; However, completely offline hardware wallets should be preferred while storing a large number of crypto assets.
However, hot wallets offer the advantage of being more convenient to use, as they can be accessed from anywhere with an internet connection. As such, hot wallets are well suited for small amounts of cryptocurrencies that need to be spent frequently, while cold wallets are better suited for storing larger amounts of cryptocurrencies for long-term investment.
• Cold wallets
Hardware wallets are physical devices used to store digital currencies. These wallets do not connect to applications that run over the Internet. Instead, it keeps your funds safe from attackers by storing your private keys offline.
❖ Best crypto wallets in UAE
The United Arab Emirates is one of the most popular countries for cryptocurrency trading. However, it can be difficult to find a good crypto wallet in the UAE. There are a few things to consider when choosing a wallet, such as security, fees, and features. Fortunately, there are plenty of great options available. Here are some of the best cryptocurrency wallets in UAE:
❖ First: Binance wallet
Binance Crypto Wallet is a decentralized wallet of the Binance platform. In order to obtain the wallet, you can do this through the Binance application on the phone only. Unfortunately, this means that it is not available on PC.
This wallet is not like MetaMask or TrustWallet. They are not non-custodial. This means that you do not keep the secret keys to your coins. Binance does this for you.
The wallet also does not have the Seed phrase, which is always the password for crypto wallets. You can access and redeem it through the Binance application on your phone. Therefore, all you need is your username and password.
❖ Second: Trust Wallet
Trust Wallet is a mobile cryptocurrency wallet that supports Ethereum and over 20,000 different ERC20 tokens. The wallet is available for iOS and Android devices, and offers a variety of features to its users. Trust Wallet is one of the few wallets that allows users to buy, sell, and trade cryptocurrencies directly from the wallet app.
Additionally, the wallet also features a built-in browser that allows users to access decentralized applications (dApps) on the Ethereum network. Trust Wallet is a convenient and secure way to store your digital currency, and is an excellent choice for users in the UAE who want to stay connected to the world of digital assets.
❖ Third: eToro wallet
The eToro cryptocurrency wallet is a safe and easy way to buy, sell and store cryptocurrencies. The wallet is available in the UAE and allows users to buy, sell and store Bitcoin, Ethereum, Litecoin, Ripple and other major cryptocurrencies.
The eToro wallet is available in English and Arabic, and provides users with a simple interface to buy, sell, and store their cryptocurrencies. The eToro wallet also offers a competitive exchange rate with other major exchanges.
❖ Fourth: Trezor wallet:
Trezor is a company based in the Czech Republic that offers two types of hardware wallets, Trezor One and Trezor Model T. Trezor One is the less expensive option and supports over 500 cryptocurrencies. The Trezor Model T is the newer and more affordable option that supports over 1,000 cryptocurrencies. If you want to buy a Trezor hardware wallet in the UAE, you can do so online from the Trezor website or from authorized resellers. You can also find Trezor hardware wallets for sale on Amazon.
❖ How to keep your digital currencies safe
Be aware of phishing sites. Whether you are connecting to a trading platform or an online wallet, make sure you are logged in to the correct address. Many fake websites simulate trades for the sole purpose of stealing your login data. Always check if the website address is correct.
Make sure websites are secured using HTTPS.
Only sign in to secure websites with a valid HTTPS certificate. Most legitimate sites have one. For added security, try browser plugins like HTTPS Everywhere.
Use a secure Wi-Fi connection. Never connect to your online wallet, trading account or any other important security point via public WiFi. Even when you're in a secure location, make sure your WiFi access point uses strong encryption like WPA-2.
Separate your money. Don't keep all your crypto assets in one place. The best way to deal with it is to use one or more cold storages for long-term holdings and at least one hot wallet for trading and transactions.
Use two-factor authentication Always secure your accounts with two-factor authentication (2FA). Whenever possible, use software or hardware two-factor authentication (2FA) tools instead of SMS.
Whitelist IP and cloud addresses. If you have a static IP address, use it for your safety. Make sure that only you can access your accounts and funds.
Double-check the encryption addresses. Some malware can edit and paste the wrong transaction address when sending a transaction. The new address usually belongs to one of the attackers. It is better to be safe than sorry.
Use security measures that you can handle. Some people never feel safe and try their best to secure their cryptocurrencies. However, they forget that they may also lose cryptocurrencies due to their security tools.
Losing access to your accounts, funds, or wallets is as common as hacks. Don't over complicate your security if that's not what you want anyway. We strive to achieve the right balance between complexity and security.
The art of keeping your cryptocurrency safe and secure is a critical skill to master on your journey to becoming your own bank. The earlier you learn this, the better.
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