How can you decide which form of wallet is most suitable for your company now that you are familiar with the many options available? The response to that question is contingent on a number of different aspects, including the kind of enterprise that you run, the coin or coins that you plan to work with specifically (such as Bitcoin, Ether, or Litecoin), the amount of money that you are dealing with, and the amount of experience that you have working with cryptocurrencies.
Making the decision between hot and cold storage
The amount of money that you want to transfer using your cryptocurrency and the frequency with which you anticipate making transactions are two factors that should guide your decision between hot and cold wallets. If you own a tiny company that only deals with a little quantity of cryptocurrency, then a hot crypto wallet for business can be sufficient for your needs.
If you have a bigger company that handles more money or if you want to store (HODL) your cryptocurrencies as an investment for a significant amount of time, you should probably pick a reliable cold storage crypto wallet rather than a hot wallet. The Ledger Nano S, which can store more than 700 different cryptocurrencies, is widely regarded as one of the most reliable cold storage hardware wallets on the market today, both for consumers and for corporations.
Picking between a custodial and non-custodial wallet
If this is your first time dealing with cryptocurrencies, and you don’t have much experience with making transactions and keeping track of your funds, let alone your private keys, it’s probably a good idea to go with a custodial wallet like Coinbase Wallet or Exodus. These wallets store your private keys for you so that you don’t have to worry about losing them. These are solid wallets that are easy to use and will help you get the hang of how everything works, so you won’t have to worry about losing any of your cryptocurrency while you’re learning.
You may want to think about upgrading to a noncustodial wallet as your company expands and as your experience with cryptocurrency increases. This kind of wallet gives you complete control over your cryptocurrency holdings.
Features that are relevant to a company that you should search for in a cryptocurrency wallet
When searching for a crypto wallet for your company, in addition to selecting a wallet that will keep your cryptocurrencies secure, there are a few other aspects that you may want to keep an eye out for, including the following:
- Support for multiple signatures, often known as multisig, is a feature that makes it possible for more than one person to authorize a transaction before it is carried out. Because of this, there will be no one in your company who has complete authority over the money, which will make theft far less likely to occur.
- Support for Segregated Witness (SegWit): SegWit is a technological innovation that was made to the Bitcoin protocol that enables transactions to be completed more quickly and for a lower cost. If you want to move cryptocurrency around a lot, you should seek a wallet that implements the SegWit standard.
- Assistance with the Payment Protocol (BIP70-73): A set of protocols known as the Payment Protocol has been developed to make Bitcoin transactions more secure and more efficient. It is critical for companies to provide support for these protocols in order to make it less difficult for their consumers to pay them.
Selecting a suitable wallet is the first step in setting up a crypto wallet for use in a business setting. Your company’s crypto assets are best stored in BitHide`s (bithide.io) anonymous crypto wallet.