using cryptocurrency wallets

Bitcoin Questions and Answersusing cryptocurrency wallets

Roger asked 4 months ago

I wish ti buy bitcoins and several “alt” coins. Do I need a wallet at each exchange that I need to trade with. How many wallets will I need for “normal business”? As they accumulate, how do I keep track of them?

2 Answers
Steven Hay answered 4 months ago

Hi Roger,
 
Exchanges will provide you with an online wallet for each coin. The downside is that the exchange holds the private keys to each wallet, so if the exchange suffers a problem then your coins are at risk. It’s advised for this reason that you hold your coins in a personal wallet under your control and on your device. A hardware wallet is the ideal way to do this, in terms of security and convenience.
 
Right now I have about six or seven crypto wallets installed. Obviously the more coins you hold the more wallets you’ll need, unless you use a multiwallet – I don’t really recommend these for security reasons, as I feel they’re inevitably less secure than dedicated wallets. Honestly, I don’t think you should spread your portfolio further than about a dozen coins max in any case – just keeping up with Bitcoin can be a full time job!

Roger replied 4 months ago

Thank you Steven your answer was very helpful.

Would I have to buy many “ledger nano” wallets?, one for each coin I own?

Roger answered 4 months ago

Thank you Steven. your answer is appreciated. You say \”installed\” above, do you mean software, (like Stellar)? If I want cold storage, would I need many Ledger Nano S\’s?

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