One of the most critical parts of holding and trading cryptocurrency is keeping your precious coins safe. It is not recommended to keep your long term hold coins on the exchanges as there has been instances in the past where the exchanges were hacked. For normal day trading and swing trading it is fine but the bulk of it must keep kept safe on your own hardware wallet.
Top Brokers to trade Cryptocurrencies in South Africa
What is a crypto wallet?
For the cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) or Ripple(XRP), the crypto wallet is a savings stocking, wallet and account at the same time. Cryptocurrency ownership is established via cryptographic keys, and these keys are stored in crypto wallets. Here we present the most popular crypto wallets in South Africa:
Best crypto wallet South Africa Reviewed
Each of these wallet types has its pros and cons and its characteristics. The following points should always be kept in mind when choosing a wallet:
- Security: Software-based wallets are only as secure as the device they run on.
- Versatility: Some wallets are specifically Bitcoin wallets, Ethereum wallets, Ripple wallets, etc. If you don’t want to commit yourself, you need a multicurrency or multicoin wallet.
- Language: English is not for everyone, so other South African languages option like Afrikaans and Zulu can be advantageous.
- Usability: How easy is the wallet to use?
1. Offline wallets – the most secure crypto wallets
Offline wallets the most secure way to store cryptocurrencies offline. The wallet uses a storage medium that is separate from the internet. However, this security comes at a price: you have to buy hardware wallets to keep your money safe. Since these wallets are usually expensive, South Africans are urged to buy hardware wallets under certain circumstances.
2. Online wallets – simple and convenient
Online crypto wallets, also called web wallets, are usually the easiest way. The cryptocurrencies are stored online on a provider’s server. Often these wallets are offered by cypto exchanges that trade cryptocurrencies. This comfort has its price:
- Connection to the Online wallets require a secure data connection
- Those who use online wallets are bound to the provider and should trust their security policy
- High risk wallets
Note: Online wallets are most vulnerable to cyber attacks and phishing.
3. Hardware crypto wallets – the bank in your pocket
Examples of offline crypto wallets:
Hardware wallets are small USB devices that store your keys separately from the internet and allow you to make convenient transactions. You simply connect the wallet to a computer or smartphone and get started. Nobody can manipulate your hardware wallet, you should only buy from the manufacturer or an official crypto wallet seller. There are two top dogs in hardware wallets:
No matter whether you’re new to Bitcoin or already a security expert. Trezor is the Bitcoin wallet choice #1 for everybody. Use without a risk. Bitcoin is secure by design. All you need is a tool to use it without risk. All you need is your own Trezor wallet.
Leave behind the viruses and keyloggers. Forget about doing regular backups, reading encryption manuals, printing paper wallets and making offline storages. Next time you see another 10+ steps guide to secure your bitcoins, just skip reading it.
Trezor is available in South Afica and costs around R 2,100 on Takealot.com.
Ledger Nano S is one of the most popular hardware wallet in South Africa and with good reason: Since transactions have to be confirmed directly on the wallet, it can even be used on insecure devices. You can get it at a price of around R 1299 which affordable at Takealot.com.
4. Paper wallets
A paper wallet is also a physical medium on which the necessary keys can be stored. Often these paper wallets use QR codes that can be scanned for transactions. Storing a cryptocurrency on paper may seem old-fashioned, but it has advantages: paper wallets cost next to nothing and are safe from “cybercriminals”. The other side of the coin are classic security risks: theft, loss or destruction of the paper. The be-all and end-all for using paper wallets is a safe place to store them.
Which wallet should I choose?
Why should you only use one wallet? Every wallet has strengths and weaknesses and it always depends on what you intend to do:
- Do you want to give away cryptocurrencies? Use a paper wallet like a gift card.
- Do you want to invest large amounts securely in cryptocurrencies? Then use the hardware wallet or deposit a paper wallet in a safe deposit box.
- Do you only use one exchange and want it to be as simple as possible? Then use the online wallet of this exchange.
- Do you want to pay easily with digital money on the go? Then use a software wallet on your cell phone for the small amounts you need on the go.