Ask CryptoVantage: Do Different Crypto Coins Need Different Wallets?

Do Different Cryptocurrencies Need Different Wallets?

technically yes. You need different a different wallet for different cryptocurrences. Bitcoin wallet for your BTC, an Ethereum wallet for your ETH, and a Cardano wallet for your ADA .
You can not store BTC in a Cardano wallet ( or even send it there ), and frailty versa. For something like Ethereum, your Ethereum wallet can store any ERC-20 token, so you do not need a new wallet for Uniswap ( UNI ), Polygon ( MATIC ), or Synthetix ( SNX ) tokens, as they are compatible with any Ethereum wallet such as MetaMask or My ether Wallet. The same is true of a Binance Smart Chain wallet and any BEP-20 asset such as PancakeSwap ( CAKE ) .
There are, however, as multi-asset wallets like Exodus, Trust Wallet, Ledger, Trezor have the ability to have many different wallets on one device or patch of software .

How Many Wallets Will I Need?

Wallets through exchanges like Exchange and Binance contain wallets for every asset you own, and when you deposit a new asset a new wallet address is created for that asset. In other words, they are multi-asset wallets. What this means is that if you are comfortable using a custodial wallet overhaul ( most exchanges are custodial, meaning you do not own the key ), then you do not need to worry at all about having different wallets, as the exchange will take care of all of that for you.

While not as much of an consequence nowadays, keeping your assets on an exchange means potentially leaving them in “ hot ” wallets, which are wallets that are active and potentially a target for hacks, as exchanges pool exploiter funds. Most exchanges now try and keep 90 % or more of users ’ assets in cold wallets.

Software and Hardware Wallets Made Easy

The reality is that with most non-custodial software and hardware wallets you will not need more than one slice of software or hardware despite needing different wallets for each different cryptocurrency asset. This is because the majority of them are multi-asset wallets, meaning you can have lots of different addresses for different crypto assets tied to the lapp wallet, you precisely have to select the asset you wish to deposit and send it to the address the wallet provides. Something like the Exodus software wallet allows you to store Bitcoin, Ethereum, Cardano, Cosmos, Binance Coin and many more. One piece of software will likely cover all your wallet needs.

interim, with hardware wallets like the Ledger Nano X, you simply have to install the wallet app for whichever asset you want to store using your ledger and then send the asset to the address provided. There are hundreds of digest cryptocurrencies on most hardware wallets, whether Ledger or Trezor, meaning that you can basically buy one hardware wallet that holds every cryptocurrency you may be concern in .
In summary most modern cryptocurrency wallets are multi-asset wallets but it ’ south authoritative to understand they technically hold a variety of different wallets for each cryptocurrency. The key takeway is that you should never try and send Bitcoin to an Ethereum address or vise versa as you risk losing your coins .
Below is a quick list of the best wallets to get you started :

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Category : Finance

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