Just like the universal fiat currencies associated with different countries, or money stored on digital platforms such as PayPal, cryptocurrencies too need a wallet for storage. However, the mode of storage between other wallets and crypto wallets differ a lot.
With more than 1000 cryptocurrencies in existence, there is an expectation of a significant number of crypto wallets. However, unlike other virtual currencies wallet, there can be somewhat greater expectations when it comes to Ripple Wallets.
The Ripple ecosystem is engineered to provide a single global blockchain network where banks and other financial institutions can facilitate speedy transactions. The technology envisions replacing the inefficient payment structures implemented by banks, especially on a global scale.
Currently, there are more than eighty banks who are RippleNet Members. With the world’s biggest banks such as Bank of America being among the members in partnership with the revolutionary technology.
As a Ripple user or investor, fundamental things you should have at your fingertips concerning the crypto’s wallet include:
The wallet can either be ‘hot or cold’ in nature
The state of the Ripple wallet you choose to use can either be described as ‘hot’ or ‘cold’ depending on the risk that the platform bears to the stored coins. Hot Ripple Wallets are connected to the internet, hence more susceptible to hackers. They majorly cover wallets offered by Ripple exchange websites, desktop ripple wallets, and mobile ripple wallets. Such portfolios are more appropriate for storing small amounts of xrp coins.
On the other hand, cold ripple wallets are offline platforms used to store the virtual currency. They can either be in the form of paper or hardware wallets. And are ideal for holding a significant amount of xrp coins. As a Ripple user or investor, it is advisable to have both the hot and cold xrp wallet to sort out your finances securely.
How does a Ripple wallet work?
Do you have a safe box in your possession? Or do you know how safes operate? A Ripple Wallet works pretty much the same way as a safe cabinet. Unlike the physical safe box with physical keys which must be kept private, a Ripple Wallet has virtual keys, commonly known as private keys.
The private keys must be securely kept to prevent exposing one’s xrp coins to hackers or thieves. The keys are a mandatory requirement whenever a wallet holder needs to access his or her funds. A lose of the private keys without any backup, therefore, means a loss of the Ripple Coins in a user’s or investors possession.
The cost of acquiring and maintaining the wallet
Some Ripple Wallets are free to acquire. Whereas others are obtained at a price. Most online, desktop and mobile wallets only require users to sign up for the services, activate their accounts, and start transacting with the portfolio. On the other hand, cold wallets, especially the hardware wallets retail at different prices. Either way, it is advisable to choose a wallet that guarantees optimum security of the funds stored regardless of whether it’s free or comes with a price tag.