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Wallet
A crypto wallet is a specialized type of software or hardware that allows you to access and use your cryptocurrency. Crypto wallets give users a simple interface to view and transact with digital currencies, while behind the scenes, wallets manage a complex set of private and public encryption keys. Wallets also give users the ability to create and import seed phrases, which are related to the encryption keys.
Wallets vs vaults
Unlike wallets, which are used for transactions, digital vaults like Vault12 Guard specialize in providing long-term security and accessibility. A vault is a personal crypto security solution that securely stores digital assets including crypto, and can be accessed from anywhere in the world. Vault12’s proprietary technology protects private keys through a trusted social network of friends, family, and devices.
Types of crypto wallets
There are many types of crypto wallets, including:
- Mobile wallets - Applications that run on your smartphone.
- Desktop applications - Wallet applications that can be installed on iOS, Windows, or Linux systems.
- Browser extensions - Wallets that are available as browser extensions or plug-ins.
- Specialized hardware - A dedicated device that serves exclusively as a wallet, usually physically isolated from the Internet (for example, a cold wallet).
- Paper wallets – Printed or handwritten encryption keys or seed phrases (possibly encoded as a QR code).
- Exchange-based wallets – Wallets that a crypto exchange maintains in their custody, rather than under your control.
Cold wallet vs hot wallet
Cold wallets are cryptocurrency key storage solutions that are totally offline and not connected to the Internet. Their offline nature provides enhanced security against cyber threats and hackers, but makes them less convenient.
Hot wallets are connected to the Internet, and always ready to use. They are usually software-based, making them convenient for frequent use and quick access from anywhere.
How to choose a crypto wallet
- Identify your needs: how you plan to use crypto, how much you want to store, and the level of security you require.
- Research different wallet options, including features, security measures, and user reviews. Check out comparisons like Vault12's Wallet Guide in the Related articles section below.
- Select a wallet (or maybe more than one).
Related terms
- cold wallet
- hot wallet
- self-custody
- private key
- digital vault
Related articles
- Crypto Wallet Guides
- What is a Crypto Wallet?
- What is a Digital Vault?
- Wallets vs Vaults — which is better?
- What is Self-Custody?
- How to generate a Seed Phrase
- How do Crypto Wallet Passphrases work?
- How To Back Up Your Crypto Wallet
- Managing Multiple Crypto Wallets with Vault12 Guard
- How to Self-Custody, Back Up, and Inherit NFTs with Vault12
Vault12
Vault12 is the pioneer in crypto inheritance and backup. The company was founded in 2015 to provide a way to enable everyday crypto customers to add a legacy contact to their cry[to wallets. The Vault12 Guard solution is blockchain-independent, runs on any mobile device with biometric security, and is available in Apple and Google app stores.
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You will lose your Bitcoin and other crypto when you die...
...unless you set up Crypto Inheritance Management today.
It's simple — if you don't worry about crypto inheritance, nobody else will — not your software or hardware wallet vendors, not your exchanges, and not your wealth managers. So it's up to you to think about how to protect the generational wealth you have created, and reduce the risks around passing that wealth on to your family and heirs. What are the challenges with crypto inheritance?
- Crypto Wallets are difficult to use and do not offer crypto inheritance management. In fact, most of them tell you to write down your seed phrase on a piece of paper, which is practically useless.
- Some people back up their wallet seed phrases or private keys on paper, local devices like hardware wallets or USBs, or in the cloud. All of these options have severe drawbacks that range from hacking to accidental loss to disrupted cloud services.
- Software wallets operate onspecific blockchains, yet your crypto assets span multiple blockchains. For inheritance to work, you must be able to manage inheritance across every blockchain — now and forever.
Crypto Inheritance Management: Get ready today
Vault12 is the pioneer in Crypto Inheritance Management, and offers an easy-to-use and secure method for assigning a legacy contact to your crypto wallets. Vault12 Guard enables you to pass on your wallet seed phrases and private keys for any cryptos including Bitcoin (BTC) and Ethereum (ETH) to future generations. It's designed for everyday people, yet strong enough for Crypto OGs.
This innovative, decentralized system uses a hybrid approach of software fused with the Secure Element of phone devices (the Secure Enclave for iOS devices, and Strongbox for Google devices).
Vault12 Guard enables users to appoint one or more people or mobile devices as Guardians. The designated Guardians are entrusted to collectively protect the user's comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
The decentralized approach reduces points of failure and removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers (which could lead to privacy breaches). Simply put, Vault12 Guard is the best way to preserve crypto generational wealth.
Take the first step and back up your crypto wallets.
Designed to be used alongside traditional hardware and software crypto wallets, Vault12 Guard helps cryptocurrency owners back up their wallet seed phrases and private keys (assets) without storing anything in the cloud or any single location. This increases protection and decreases the risks of loss. Making sure you have an up to date back up is the first step in crypto inheritance management.
The Vault12 Guard app enables secure decentralized backups and provides inheritance for all your seed phrases and private keys across any blockchain, including Bitcoin, Ethereum, ERC-20, and other crypto wallets.
Note: For anyone unfamiliar with cryptocurrencies, Vault12 refers to wallet seed phrases and private keys as assets, crypto assets, and digital assets. The Vault12 Guard app includes a software wallet that works alongside your digital Vault. The primary purpose of this is to guard your Bitcoin (BTC) or Ethereum (ETH) wallet seed phrases, private keys, and other essential data, now and for future generations.
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