Blockchain Wallet review 2021
As soon as you buy cryptocurrency, you are faced with an important choice; how do you store the coins safely? Also for digital coins you have a wallet; the blockchain wallet. Read on in this Blockchain Wallet review to find out exactly what it entails and how you can use a blockchain wallet yourself!
Using a blockchain wallet - a step-by-step plan
1 - Choose a broker - Choose a suitable broker (we recommend eToro).
2 - Deposit money - Choose one of the many payment options to deposit money
3 - Buy a cryptocurrency: - Find an interesting cryptocurrency and buy as much as you want!
4 - Store the crypto in a blockchain wallet: - Send the crypto to your chosen blockchain wallet!
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Blockchain is still very complicated for many traders. The terms blockchain wallet Ethereum, blockchain wallet Ripple and Bitcoin wallet blockchain are found everywhere, but what exactly is blockchain and how does it work? In this article we will delve into the operation and functions of a crypto wallet.
What is a Blockchain Wallet?
Cryptocurrencies are digital coins that run on a blockchain network.
This blockchain network consists of different blocks. In a block transactions are approved and in some cases new coins are created.
You also want to store these digital coins as safely as possible; you do this in a blockchain wallet.
A Blockchain wallet is therefore a wallet intended for cryptocurrencies. There are major differences between the possibilities you have with a blockchain wallet. Where you used to be able to store your coins in the wallet, there are now all kinds of other possibilities with this digital wallet.
For example, you can let the coin in a wallet work with a network through strike, or you can buy new coins from your blockchain wallet or trade coins directly with each other.
Meanwhile, numerous blockchain wallets have been introduced to the market, some specifically for one particular coin while others support hundreds of different coins.
How do I use a Blockchain Wallet?
To get started with a blockchain wallet you will first need to buy a blockchain crypto currency. Cryptocurrency can be purchased in various ways. The easiest way is to do this at an online broker / exchange.
If you do this at such an exchange, you will need a blockchain wallet to safely store your cryptocurrency. At a broker you keep your investments in your investor wallet on the platform itself, but you can also move these to another blockchain wallet yourself.
First of all, you should decide whether you want to trade in the form of CFDs or actually buy the currency. CFDs do not have to be stored in a wallet because they are contracts, and not the possession of the crypto currency itself.
Step 1: Choose an online broker
Step 3: Deposit money on your account
Step 5: Store your newly purchased cryptocurrency
Step 1: Choose an online broker
The fastest and easiest way to buy cryptocurrency is by purchasing it through an online broker. You can choose from many different brokers.
There are a large number of different brokers and they all offer different trading products. It is very important to check whether a broker is regulated. Make sure that a broker is regulated by at least one regulatory authority.
Do you want to buy crypto currencies and are you looking for a good broker? Below you will find an overview of good regulated brokers.
eToro is really recommended for cryptocurrency traders. eToro has been around since 2007 and has a wide range of markets in which you can invest.
eToro is the largest social trading platform. This means that they use social features such as a news feed with comments, but also for example copy trading. With this, you can easily copy trades of the best investors of eToro with your own account and thus profit along with them!
At eToro, you can also trade more than 25 different popular cryptocurrency coins such as Bitcoin and Ethereum.
The advantage of eToro is that in addition to cryptocurrency, it also has a wide range of other trading products. For example, at eToro you can also trade in commodities, indexes, currencies, stocks and ETFs.
As a beginner, you can use a free demo account at eToro. For this account, you only need to provide an e-mail address and you get virtual money to get acquainted with the platform and to try out a number of investments before you get started with your own money.
You can already start at eToro with a low minimum deposit from €42.
Would you like more information about eToro? Read under the heading 'brokers' our eToro review or get started right away and create an account now!
Like Capital, Libertex allows you to trade CFDs on commodities.
Libertex, on the other hand, has been around a lot longer. The broker was founded back in 1997, so it has a lot of experience. They have also won more than 40 (inter)national awards for their services.
Today, Libertex has almost 3 million users who are active all over the world. They themselves are headquartered in Cyprus, where they are regulated by the CySEC as is Capital.
At Libertex you can start trading from €100 euro and find a super diverse range of CFDs from crypto currencies, stocks, commodities and much more.
Create an account with Libertex and invest in a wide range of crypto currencies!
Are you looking for crypto exchange? Then Bitvavo is an interesting broker for you.
This broker specialises entirely in trading cryptocurrencies and is registered with the DNB. In addition to the well-known coins such as Bitcoin and Ethereum, Bitvavo also offers smaller crypto currencies.
You can buy more than 50 crypto currencies at Bitvavo. It is expected that this offer will expand in the coming years.
One of the things you can buy from Bitvavo is the Bitcoin itself, which means you need to store it somewhere safe. You can use the blockchain wallet to safely store your Bitcoin purchases.
Bitvavo is a perfect platform for novice crypto investors, because it is fully conversational and the interface is very minimalist and user-friendly. This way, you will be familiar with the platform in a short time and you can fully focus on investing in cryptos.
Bitvavo is very popular and this is partly due to the low transaction costs that the platform entails. You can also easily deposit money via a variety of payment options, including the payment method iDEAL.
Create a free account at the broker Bitvavo right away!
Binance is the best known crypto exchange and also the most used exchange in the world. The company was founded in China and is the most popular option for cryptocurrency investors who want to invest in many different coins.
Binance has a huge range of different coins and is also the first to launch cryptocurrencies in many new projects.
The big difference with Capital.com is that at Binance you do invest in the coin itself. This way, you can buy a coin and actually own it instead of entering into a contract.
At Binance, you can deposit money via iDEAL and you can also easily use other payment methods such as bank transfer, credit card or the deposit of cryptocurrency itself to fund your account.
Create an account at Binance with the green button and invest in a wide range of crypto currencies!
At the broker Capital.com you can trade crypto as a CFD.
Capital.com has not been around very long, but has grown very quickly in recent years. Capital.com does this by quickly opening offices throughout Europe to be easily accessible and visible everywhere.
Because of these offices Capital.com also has licenses at several regulators. Just like eToro, Capital.com is also regulated by the Cypriot CySEC and the British FCA.
Besides cryptocurrency, at Capital.com you can easily invest in other trading products such as shares, commodities and various currencies.
Want to know everything about this new broker? Then go to the website and create your Capital.com account.
Step 2: Create an account
When you have made your choice of broker or exchange, you are only a few steps away from buying cryptocurrency.
One of these steps is of course the creation of an account at the broker you have chosen. In this example, we will look at opening an account at broker eToro.
You can create a demo account here by entering your email address and password. Once you have done that, you get access to the eToro platform.
Of course, buying cryptocurrency is done with real money. For this, you must first further verify your account. Every regulated broker in Europe is obliged to perform this verification for all its customers.
The verification consists of sending a copy of your identity document and completing a questionnaire, in which eToro checks whether you have enough knowledge and experience with investing.
Step 3: Deposit money into your account
At eToro, you can choose from one of the many payment options, for example, this can easily be done via iDEAL.
One of the great advantages of eToro is that you can start at this broker with a minimum deposit of €42. This low amount means that almost anyone can get started at this broker.
Step 4: Choose and buy a cryptocurrency
You can now make your first cryptocurrency purchase. You do this at eToro simply by searching for example "BTC" and then clicking on buy.
In the list of cryptocurrencies you can also choose to sort on the best performing coins over a certain period to get an even better insight into the market.
Have you found in this list the coin you want to invest in? Then click on this coin and subsequently click on 'Open position' on the product page.
If you choose to purchase cryptocurrency at an exchange, you will need to purchase a wallet. You can do this at blockchain wallet, among others.
Do bear in mind that if you send the coins to a wallet, they will probably be safer, but you will no longer be able to sell them directly. This makes crypto trading more cumbersome.
Step 5: Storing Crypto in your Blockchain Wallet
When you invest in crypto, you need a place to store this crypto. This can be done safely in the blockchain wallet, blockchain wallet Ripple, blockchain wallet Ethereum and Bitcoin wallet blockchain.
If you want to switch wallets you will need to find the address of your old and new wallet and use it to send the exchange. You have to be careful not to send them to the wrong address or you might lose them.
The blockchain wallet Ethereum, blockchain wallet Ripple and Bitcoin blockchain are the best known blockchain wallets.
Get started immediately with crypto trading at eToro and save your coins in a blockchain wallet!
Are there differences between Blockchains?
The blockchain makes it possible for transactions between different parties to take place in a secure manner. The transactions can take place without the need for a central 'intermediary'.
In principle, a blockchain is always decentralised. There are, however, two variants of this blockchain type. These are the private and consortium blockchain.
A public blockchain is the best known and also the most widely used. This type of blockchain is entirely decentralised and open-source.
This means that everyone can participate in the network and has the opportunity to view the information.
Everyone can connect to a public blockchain. This is also the biggest advantage of this type of blockchain. The rule is: the more people that are connected, the more secure the network is. An example of a public blockchain is the Bitcoin network.
A counterpart to the public blockchain is the private blockchain. This is a closed system. In this blockchain not just anyone can become a member of the network. Only a limited group of people can add information and view it.
With the private blockchain there is one owner who determines who gets access to the blockchain. Although the way in which information is stored does fit the blockchain, this network is no longer decentralised.
There is also a middle ground between the public and private blockchain. This type is called the consortium blockchain. This involves a partnership between multiple parties, such as banks or companies.
In this case the blockchain is not public to everyone, but there are several owners who can in turn give people access to the network. In this way, everyone can view the data, but no changes can be made by everyone.
A consortium blockchain is therefore a blockchain that has been created as part of a collaborative venture. The blockchain wallet is not public, but does have several owners. Examples of this blockchain are those of Ripple and Ethereum.
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What different Blockchain Wallets are there?
There are many different blockchain wallets. Not only are there specific wallets for each currency, such as the blockchain wallet Ethereum or the blockchain wallet Ripple, but they also differ in how they are used.
For example, there are mobile blockchain wallets that you can install and use as a smartphone app. The advantage of this is that you always have the cryptocurrency at hand. This way you can sell or send the currency wherever you are.
Another example of a blockchain wallet is the desktop wallet. This is software that you install on your computer where you can store the coins. Make sure that the computer on which this wallet is installed is properly secured.
Finally, you can also opt for a hardware wallet. These are devices that most resemble a USB stick, you connect them to your computer or smartphone and you can manage your blockchain wallet from the software on one of these devices.
The advantage of a hardware blockchain wallet is that your coins are never in contact with the internet. As long as someone does not have your hardware wallet he cannot access your cryptocurrency.
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When to use a Blockchain Wallet?
You only need a blockchain wallet if you buy cryptocurrency at a crypto exchange. At a CFD broker, you only speculate on the price by entering into a contract and you do not receive the currency itself.
When you work with such a CFD broker you do not need a blockchain wallet. Your investments will always remain with the broker, so you can easily close them again without having to use a blockchain wallet.
If you buy crypto from a regular broker, and you want to own the currency, you will need a wallet.
Advantages and disadvantages of Blockchain Wallet
Before you start storing your cryptocurrency in a blockchain wallet, it is useful to have a good look at the following tips in this blockchain wallet review.
Tips before using the Blockchain Wallet
These will help you as a beginner not to make any mistakes when using your blockchain wallet.
Pay close attention to which coins the blockchain wallet supports
Not every blockchain wallet supports all different cryptocurrencies, there are specific wallets per coin; a blockchain wallet Ethereum, blockchain wallet Ripple and a Bitcoin wallet blockchain. You need to know which coins are supported by a blockchain wallet.
If you send your coin to an address that does not support it at all, there is a big chance your cryptocurrency will disappear and you will never be able to find it again. So always make sure you choose a blockchain wallet that supports all your coins.
What extra options does the blockchain wallet have?
As you have read, there are all kinds of different blockchain wallets. You can choose from online wallets, desktop wallets and for complete security even hardware wallets.
These different blockchain wallets all come with their own options. A hardware blockchain wallet or offline blockchain wallet often offers few extra features, but you can sometimes buy cryptocurrency directly via a built-in exchange.
Online wallets sometimes also have the option to deposit your coins for the network. You will then keep your own coins, but these will help maintain the blockchain network, and you will often receive a reward for using them.
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Blockchain Review: Frequently Asked Questions
A blockchain wallet is a place where you can store your crypto coins. So when you decide to invest in cryptocurrency, you also need a place to store your coins. There are several crypto wallets on the market.
Some brokers will automatically give you a wallet, but there are also third-party wallets you can use to store your coins and send them over the blockchain network.
A blockchain wallet is made to safely store your crypto coins. Naturally, you can expect your blockchain wallet to be secure. However, always do your own research into the wallet you want to use.
There are wallets available from many different providers. Each wallet has its own functionalities and some wallets are especially made for specific cryptocurrencies. The purpose of a wallet is always to safely store your crypto coins and to offer a place from where you can send or sell your coins.
A blockchain wallet comes with an address where you can send your coins. This is either a long code of letters and numbers or it comes in the form of a QR code. You can enter this address where you currently hold your cryptocurrency in order to send the coins to the blockchain wallet.
Smart contracts are self-generated agreements based on blockchain technology. They automatically initiate actions or payments once certain conditions are met.
It is predicted that in the future smart contracts will use real-time information, such as GPS data of assets, to trigger an event, such as the transfer of a property.
Blockchain technology is not a universal solution that can be used in all cases. In the enthusiasm surrounding blockchain, it often happens that developers try to use blockchain technology to solve problems that do not exist.
Blockchain technology is currently widely used in different areas and for different purposes. The technology behind it is therefore subject to many upgrades and adaptations. Some examples of well-known blockchain platforms are Ripple, Ethereum and Linq.
Blockchain Wallet Review: Conclusion
Many see the future of our money in blockchain networks such as that of the cryptocurrency Bitcoin. As more and more people start investing in cryptocurrency, these investors also need their own blockchain wallet.
These blockchain wallets also continue to develop and are becoming easier for consumers to use. We are still waiting for blockchain wallets that you can also easily use in shops for payments.
If you want to invest in cryptocurrency easily and conveniently, create an account at eToro!
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