How to choose a wallet for storing cryptocurrencies mined
Mining cryptocurrencies (farming or cloud mining) is a profitable way to obtain digital assets, but this in turn makes the issue of a safe way to store these assets relevant. To prevent potential cyber attacks or identity theft, experts advise storing all coins in a so-called crypto wallet.
Choosing the right wallet is crucial for miners, as it can affect the security of their earnings. This article will cover various types of wallets, discuss why the Ledger wallet may not be the best option for all miners, and recommend alternative hardware wallets suitable for storing mining rewards.
The main types of wallets
Currently, there are a large number of crypto wallets. Each type of wallet has its advantages and disadvantages, and it is important for miners to choose the right one for their needs.
The main types are cold and hot crypto wallets. Hot crypto wallets are connected to the Internet or exist on the Network. They are easy to set up and provide constant access to funds. They are good for traders. But at the same time they are very vulnerable.
Cold wallets are autonomous, which to a greater extent guarantees their resistance to hacking, thus their security is the main advantage of such wallets. We must mention software, hardware, paper and online wallets as well.
Which wallet should miners choose?
Since miners receive large amounts of cryptocurrency, they are an ideal target for hackers. This suggests that the miner should carefully consider the choice of a crypto wallet in order to protect his cryptocurrency.
Since hot wallets are not reliable enough, it is better to give preference to hardware. These are physical devices specifically designed to protect cryptocurrencies. Such wallets are closest to “cold” storage. They provide security better than others – and this is what the miner is interested in.
Among the hardware wallets there are quite easy to use, compatible with mining software and supporting several cryptocurrencies, which can be especially attractive for miners. The only disadvantage of a hardware wallet is that if the carrier is lost, the wallet cannot be restored. Therefore, all the cryptocurrency stored on it will be automatically lost.
Pros and cons of popular hardware wallets
Ledger
Ledger crypto wallets are the most popular among all models of hardware wallets. They have a number of advantages, but at the same time they are not without disadvantages.
Ledger is one of the most famous hardware wallets.
Positive:
- High security
- Offline storage for secret key protection
- Support for different cryptocurrencies
- Ease of use and frequent updates
- Reputable brand
Cons:
- The occurrence of difficulties while conducting a large number of transactions at the same time, which makes it inconvenient for miners
But cryptominers may also like the crypto wallets listed below.
Trezor
This crypto wallet is the second most popular.
Pros:
- Support for a wide range of cryptocurrencies and compatibility with most mining programs
- Affordable price
Cons:
- Relative fragility
- Small screen
KeepKey
It is another hardware wallet with an interesting design.
Pros:
- Big screen
- Convenient and reliable in operation
- Relatively low price
Cons:
- Large size and weight
- A small number of supported coins
BitBox
This is a new hardware wallet.
Pros:
- Focus on privacy
- Tor Support
- Password protection and multi-factor authentication
Cons:
- A small selection of coins
The best crypto wallets also include SecuX W20 Crypto, which has a large screen and supports more than 1000 different cryptocurrencies, D’CENT, which has a fingerprint reader and an application that syncs with smartphones, Bitcoin Material, which is a metal card with a wallet printed on it and a private key.
How to use a hardware wallet?
Examples of using hardware wallets are:
- Receiving funds acquired through mining on them
- Storage of funds
- Trading
Do not forget that the hardware wallet is closest in its functionality to the cold one, therefore it provides its owner with approximately the same possibilities of use.
Security Tips when using a hardware wallet
The miner should always be guided first of all by what is necessary for him personally, but certain steps that need to be followed strictly relate to the issue of security and are the same for all wallets:
- Multi-factor authentication
- The PIN code and recovery phrase should not be transmitted to unknown third parties
- Enter the phrase and the recovery key of the crypto wallet manually, and not by copying
- Double-check the spelling of the address
- Ask about the availability of protection or insurance of providers in case of loss of funds
- Update the device regularly
- Strictly follow the operating rules set out in the appendix to the wallet
- When downloading a crypto wallet from Google Play, check the number of downloads, its ratings and reviews
Coming to the end of our article, we would like to dot all the “i” in the question of which wallet to choose for a miner. And such an ideal wallet will be a solution that combines: security, support for the maximum number of necessary coins, compatibility with most mining programs, ease of use and affordable price.
And based on what was written above, we can definitely recommend miners to use the Trezor wallet. With its help, you will be able to perform almost all types of operations with cryptocurrencies without fear of various threats.
A well-chosen wallet is an almost complete guarantee of the safety of your crypto assets, as well as proven mining pools, such as Ultramining, which we recommend using for other crypto activities.
