There are merely two types of storage methods in the cryptocurrency market: the first is to store in the virtual coin exchange user account, and the second is to store in a dedicated digital coin wallet. Therefore, the safer way to keep digital coins is to transfer them to a dedicated cryptocurrency wallet.
Dedicated digital currency wallets are usually in two forms, the first is an application, and the second is a physical device; it can be a piece of paper. In addition, the wallets supported on an android device comprise two different kinds, hot storage and cold storage. If you want to start bitcoin trading, check if you can shop bitcoin online. Here are a few tips that can assist you in opting for a digital currency compatible with an android device.
What is a digital wallet?
Digital wallets are usually hot storage wallets. The Digital wallets category do not include physical wallet or paper wallet. In other words, not every wallet offering digital coin services is equipped with virtual attributes as some are physical.
Some of the leading digital currency dedicated wallets supported on Android devices include Mycelium, Electrum and Exodus. Nowadays, hardware wallets also have Bluetooth connectivity, making it easy to connect with an android device.
Multi-signature is a sensational attribute of a digital currency wallet. Multisig is a custodian wallet, and people can keep their funds in a cryptocurrency wallet collectively. To withdraw funds or execute any transactions from a cryptocurrency wallet having this feature, you need the authorization of every participant of the group.
In short, Multi signatures eliminate the dominance of the single user while executing transactions. This feature is more suitable for crowdfunding, businesses and group funds. Multisig comes under the advanced feature present in a cryptocurrency wallet. Multisig seems to be thickening the security of a digital currency wallet. Multisig is more of a choice and is not mandatory at all.
Are cryptocurrency wallets for android utterly anonymous?
Digital currency wallets do fall under the category of utterly anonymous applications. Cryptocurrency wallets refer to a pseudonymous type of storing digital coins. You might wonder why digital currency wallets are pseudonymous; these wallets give a non-public key to the user alongside a public address.
The public address does not indicate anything regarding the user’s identity, but it is visible to everyone, including the recipient and sender. In other words, these public keys can be traced by other participants. Unfortunately, few digital currency wallets have developed a system to make digital currency transactions private and untraceable.
The structure of this cryptocurrency wallet comes up with a stealth address technology that continuously keeps mutating the wallet address on each transaction. Furthermore, wallets comprising stealth address technology do not even include your customer program. In short, stealth address technology makes a wallet completely anonymous.
In the end, the only feature that can protect you from different kinds of hacks and theft is the security protocol. Usually, there are two security protocols in the majority of the digital currency wallet. But unfortunately, HTTP is claimed to be too secure in any other security protocol.
Factor 2 Authentication!
Like Multi signatures, Factor 2 Authentication adds an extra security layer in a cryptocurrency wallet. Factor 2 Authentication is one of the mandatory features of a cryptocurrency wallet. The cryptocurrency wallet in any android device should be challenging to access.
No cryptocurrency wallet comprises the forget password feature, so you have to be very careful before setting up the password. Then, with the help of factor 2 authentication, you secure the cryptocurrency wallet with a pattern or pin code.
Choose an appropriate type of cryptocurrency wallet!
Two basic kinds of cryptocurrency wallets include hot and cold. Hot storages are popular as an online or virtual wallet; on the other hand, cold wallets are popular as offline. Hot storage has different categories like desktop, mobile, and cloud wallets.
On the contrary, cold storage has different subcategories like hardware, paper, and physical wallets. Digital wallets lack security when compared to the offline one. These storages are now compatible with Android devices as Mycelium comes up with hot and cold storage.
The above-listed portion describes some tips to choose an optimal android wallet.