Shifting from a traditional paper-based currency to a decentralized cryptocurrency can be a challenge for some. Contrary to what the stock images strewn across the internet might suggest, crypto tokens aren’t backed by any physical asset. You can’t physically withdraw tokens and put them into the wallet you keep in your pocket or pocketbook.
Instead, cryptocurrencies are stored in digital wallets. And if you want to hold EQIFI’s token, EQX, you need a digital wallet that’s compatible with the ERC-20 protocol.
Digital wallets can take a variety of forms, so here’s what you need to know before you make your decision.
Storage Options for ERC-20 Tokens
ERC-20 tokens are digital assets created on the Ethereum blockchain. Thankfully, ERC-20 is the most popular standard for tokens today, so you have plenty of options to choose from in your digital wallet.
Here are a few types of digital wallets to consider: Desktop Wallets
This type of wallet takes the form of a computer program, so it’s only accessible from the computer on which it’s installed. This keeps the wallet detached from the internet to a degree, but it could still be vulnerable if your personal computer is hacked.
Hardware wallets are physical devices that store keys for cryptocurrency transactions. They often include a USB network adaptor to allow you to plug the device into a laptop or desktop. These devices typically offer other functionalities, such as encryption, and are widely considered one of the most secure options.
Mobile wallets function as applications on your mobile device. They come with several advantages, one of which is obvious: convenience. Instead of carrying an extra device around in the form of a hardware wallet, simply use your mobile app when you want to make a transaction or check your balance.
Mobile wallets are also increasing in popularity as more and more retail locations accept cryptocurrency. Some retail locations now allow you to pay for products directly in cryptocurrency using a mobile wallet.
Online or cloud-based wallets are operated on remote servers, i.e., the cloud, and accessed by the user via the internet. They either store your tokens in the cloud or run a cloud-based application to encrypt and authenticate your tokens and transactions.
Although cloud-based wallets are convenient, some people prefer other options due to the risk of their information being stolen or breached in a cloud environment. Most cloud service providers give assurances that their systems are secure, but it’s impossible to know where your data resides when it’s in the cloud-it could be held on a single server or spread across several, almost anywhere in the world.
The Top 3 Wallets for EQX Tokens
EQX is the EQIFI protocol’s native, fungible, ERC-20 token built on the Ethereum platform. And because EQX tokens are also ERC-20 tokens, you have plenty of choices when it comes to what digital wallet you can use.
We’ve looked at several options. Based on reviews and analyses, here are three of the top wallets widely recommended:
Atomic Wallet is a fully decentralized, free-to-use desktop wallet that supports all ERC-20 tokens. You can store all your ERC-20 tokens in one place with this wallet. That’s because Atomic acts as an interface that connects to multiple Ethereum block explorers, which allows it to reflect the total balance of all your tokens.
The Ledger Nano is perhaps the most recommended hardware wallet by the crypto community. It’s affordable and comes with a wide range of security features, including a PIN, seed keys, and passcodes to secure your tokens. It also supports several cryptocurrencies.
If you want a more affordable option, you can go with the Ledger Nano S. But if you want better features and a sleeker look, you may want to upgrade for the Ledger Nano X.
Ledger Nano also supports multiple languages, comes in various colors, and has several other great features.
MyEtherWallet doesn’t store user data on its servers like some cloud-based wallets. Instead, it uses your browser to crunch data. But if you’re still concerned about security, you can pair it with a physical wallet like the Ledger Nano for extra protection.
A Decentralized Protocol for ERC-20 Tokens
Whether you’re just starting your journey into the crypto market or you’ve been investing for years, EQIFI can provide you with a uniform platform for all your decentralized finance needs. Access loans, credit cards, and more using ERC-20 tokens like EQX.
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Originally published at https://eqifi.com on July 20, 2021.