A Complete Guide To Cryptocurrency Wallets In New Zealand

Date Jun 11, 2021
Blog category Cryptocurrencies
By Sieg C
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One of the most important tools to manage your digital assets is a cryptocurrency wallet. It’s an online platform that manages your digital currencies. All transactions are still stored and recorded through a blockchain. Some cryptocurrencies have their official wallet that only supports their own digital money. Although, most wallets support more than one currency.

Crypto wallets in New Zealand come as a hardware or software wallet, with features ranging from offline storage, built-in swap exchange, and mobile or web availability. Different digital currencies have unique address types, which can send coins to other addresses. For example, a Bitcoin wallet address can only send or receive Bitcoin. 

What is a cryptocurrency wallet and how does it work? What are the factors that you need to consider to choose the right crypto wallet? Moreover, what are the best cryptocurrencies in New Zealand? Read on this ultimate guide to know more.

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What is a cryptocurrency wallet?

A cryptocurrency wallet is a digital tool that stores, sends, and receives cryptocurrencies. Instead of holding coins or paper bills like a physical wallet, it holds private and public keys. These are secure digital codes, which your wallet uses to gain access to the blockchain. You can view your balance, send, or receive cryptocurrencies through these keys. 

The nearest real-world equivalent to a crypto wallet is a bank or an ATM. You can think of a public key like your bank account. Once you go to the bank, you can gain access to your account and — in extension — your funds. Similarly, you can send crypto funds from your wallet once you use the public keys. 

Just like a bank or an ATM that requires you to verify your identity through a PIN code, complete name, or permanent address, cryptocurrency wallets also require you to enter a secure digital code. This is a series of codes or numbers, called private keys. Unless you give out these details, your crypto funds in your crypto wallet remain secure and private.

Read: Guide To Cryptocurrencies In NZ: Invest, Buy and Trade

How do public and private keys work?

A public key is a long sequence of codes, letters, and numbers in your wallet address. Its main function is to send cryptos to other people’s wallets. On the other hand, a private key gives you access to the funds in your wallet. As the owner of the funds, you can control the funds using private keys. Although, some crypto wallets don’t give you full access to these keys.

While you can send crypto funds using a public key, the same can’t be used to receive them. If you’re the receiver of the funds, you need a private key to prove that you are the owner of the wallet. You need to “unlock” them to gain full access to the funds sent to you. These keys are also referred to as addresses.

The public key can be shared with anyone, just like a bank account. This isn’t a secret code as it’s used to send money to your account. This is a common practice among online content creators and charities for donation. As mentioned, it’s very important to keep your private key confidential as it’s the primary way to prove that you’re the account holder. 

What are the different types of crypto wallets?

Generally, cryptocurrency wallets simply hold your funds. They’re not used to trade, exchange, or grow your investments. Depending on your wallet, you can also purchase basic cryptocurrencies including Bitcoin and Ethereum. There are also different types of wallets with varying ease of use, convenience, and security.

While there’s a wide variety of cryptocurrency wallets, these can be usually divided into two categories. These terms are a “hot” and a “cold wallet.

  • Hot wallet - This refers to the wallets that are fully connected to the internet. This means that you need to gain access to the internet first before your funds. As everything online can be hacked or subject to fraud, they’re riskier despite them being more convenient.
  • Cold wallet - This refers to the wallets that are fully disconnected from the internet. They’re a bit less convenient and take a longer time to use, but it’s safer from the compromises of the internet.

Mobile or desktop wallets

Mobile or desktop wallets are apps that you download on your smartphones, tablets, PCs, or laptops. It’s used mainly for quick and easy payments while on the go. This is ideal for New Zealanders who are just starting their crypto investments, as they’re safe and easy to use.

Web wallets

Web wallets work similarly to a mobile or desktop wallet. Instead of an app, it’s a website-based digital wallet that you can access through a browser interface. You don’t have to install or download anything to get started with this type of wallet.

Hardware wallets

Not all crypto wallets are digital. There are also hardware wallets that work similarly to a ledger. It’s a secured physical wallet that stores your crypto keys remotely. It’s a bit harder to use, and it’s only recommended if you’re keeping your large amount of cryptos in the long run.

Paper wallets

A paper wallet is the most traditional form of cryptocurrency wallet. It indicates the two core components that make your wallet: a public and a private key. However, it’s crucial to keep them in a safe place, as they can be misplaced easily.

What’s the best type of cryptocurrency wallet?

It depends! Of course, beginners and serious investors have different needs and knowledge about cryptocurrency. Like a physical wallet, you should only store enough money in your crypto wallet. If you have more funds than you’re willing to lose, you should either take them out or transfer them to your cryptocurrency exchange to grow.

What’s the process of using money in a crypto wallet?

Most cryptocurrency wallets have three functions: sending, receiving, and holding funds. As a precaution, make sure to keep your wallet secure before doing any transactions. Activate two-factor authentication and keep your login credentials updated. Some wallets may also require you to install a secondary layer of security application.

How do you send cryptos from your wallet?

To send funds from your account to other people’s crypto wallet, you need the receiver’s wallet address or their public key. This is what you’ll enter to complete the transaction. A public key can be identified and given in three different ways: a combination of numbers and letters, a QR code (useful for digital hot wallets), or a clickable link (redirects to your wallet instantly).

  1. Log in to your cryptocurrency wallet
  2. Click the “Send” feature on the wallet
  3. Enter the recipient’s public address.
    • Note: Most wallets only allow you to send similar cryptos. For example, you can only send Ethereum from an Etherum wallet to another one. You can’t send Ethereum to a Litecoin wallet or vice versa.
  4. Encode the amount that you want to transfer
    • Note: Depending on the crypto wallet, you can also choose the fiat currency of your preference.
  5. Double-check the transaction fees, personal information, and taxes (if applicable).
  6. Click “Send,” “Finish” or any button to complete the transaction.

The process varies depending on the type of wallet you have. Hardware wallets may require you to connect their wallet and manually verify the transaction through the device.

How do you receive cryptos from a wallet?

The process of receiving crypto funds is less complicated than sending them. Although, this may still vary depending on the wallet. It also depends on the public key that you’ll give the sender: a fixed public key, a new public key for every transaction, or a combination of the two. Either way, this should be redirected to your wallet.

  1. Log in to your cryptocurrency wallet
  2. Click the “Receive” feature on your wallet
  3. Wait for the wallet to generate the public key
  4. Send this public address to the sender of funds
  5. Wait for the cryptos to reflect in your wallet
    • Note: This transaction may take up to a week to appear in your wallet, depending on the policy of your crypto wallet.

How do you hold cryptos in your wallet?

Holding crypto funds in your wallet has the easiest process. You simply have to keep them secured at all times, and that’s about it. Of course, you should also check the balance from time to time, so you can guarantee that it’s not subject to hacking. The best part is, some crypto wallets allow you to “stake,” which will earn interest as long as you hold on to your funds.

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What are the best cryptocurrency wallets in NZ?

It always depends. As a rule of thumb, you should choose a cryptocurrency wallet with a simple interface and guaranteed support from the provider. Security breaches from crypto wallets can turn into huge financial damage. Just last March, USD5.7 million was compromised after Roll was attacked by hackers.

Check out the best cryptocurrency wallets in New Zealand per category. Keep in mind that it may still vary according to your needs and level of knowledge about crypto.

Best crypto wallet for Bitcoin: Ledger Nano S

Ledger Nano S is one of the most popular cryptocurrency wallets for Bitcoin. It looks like a flash drive that you need to set up with a four-digit PIN code. After three incorrect attempts, the wallet wipes itself, so it’s very important to remember your PIN. Aside from BTC, it supports Bitcoin Cash (BCH), Ethereum (ETH), ERC20 tokens, and other more expensive cryptos. 

Being a hardware cryptocurrency wallet, it has offline storage. It’s regarded as one of the most secure crypto wallets as it back-ups your accounts on a recovery sheet. However, it’s not free. You need to pay at least EUR79. As it’s a popular wallet, there’s a long queue of orders, so you may have to wait before getting your hands on it.

  • Built-in OLED display to reconfirm your transactions
  • Support for more than 1,300 cryptocurrencies
  • Back-ups with a recovery sheet to write your seed phrase
  • The package comes with a lanyard, keyring and key chain
  • Universal 2nd-factor authentication through Google, Dropbox, GitHub, and Dashlane

Best crypto wallet for beginners: Exodus

If you don’t know much about digital money, Exodus is the best choice for you! It’s a desktop and mobile cryptocurrency wallet, available on Windows, Mac, Linux, iOS, and Android. It has a straightforward interface with support for more than 25 cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Dash. 

What’s more, you can easily exchange your crypto assets using your ShapeShift account! Fees may apply when you exchange cryptos or send funds to your wallet. It’s updated every two weeks, so you can trust to always get the latest and best features. Although, some investors may not like that it’s not fully open-source.

  • Works for major desktop and mobile operating systems
  • User-friendly with a straightforward interface
  • Cross-platform crypto wallet for mobile and desktop
  • Support for Bitcoins and a range of altcoins
  • Excellent customer service support with a fast and helpful team

Best crypto wallet for Android: Coinomi

For Android users, Coinomi is the best cryptocurrency wallet for a wide array of coins. It’s designed to store multiple cryptos, with its intuitive interface and privacy features. Most of its features are free to use, including a built-in exchange for faster trading and a secure storage platform with strong encryption technology. 

The crypto wallet places a big emphasis on privacy and user control. This makes for easy asset trading, thanks to its direct integrated currency exchange within the wallet. Within just a few clicks, you can set up a wallet and choose your preferred language including English, Russian, and Chinese. This way, different peoples can easily understand their crypto wallet.

  • Multi-coin support for hundreds of digital currencies and altcoins
  • Perfect for New Zealanders with a diverse portfolio
  • Now available for both Android and iOS
  • Trusted multi-chain wallet with millions of users
  • No compromises have been recorded since its launch in 2014

Best crypto wallet for iOS: Mycelium

Mycelium is a top cryptocurrency wallet for iOS, thanks to its security authentication features like HD (Hierarchical Deterministic), Bit ID (open protocol), “Watch Only” accounts and single address accounts. Plus, it’s an open-source software programme that creates backups and support for an offline hardware wallet.

Aside from being a popular choice among iOS users, it’s also available on Android. The biggest caveat is, it doesn’t have a web or desktop interface. You can’t do cross-platform cryptocurrency investing. What’s more, it’s not the easiest interface to use. Beginners may have a hard time navigating through the app. 

  • APK file is available for Android only
  • Generates new address for every transaction
  • Native support for 125 blockchains and thousands of tokens
  • Relies on Simplified Payment Verification (SPV) technique
  • Best rated wallet on App Store and Play Store

But, what’s the best cryptocurrency?

It’s up to your needs. Some New Zealanders want to invest in cryptos for the long term, making more stable crypto like Bitcoin and Ethereum a better choice. On the other hand, others only like them to grow temporarily, making a fast-growing crypto or altcoin a better choice. Nonetheless, make sure you have the right cryptocurrency wallet to manage your digital assets. The right tools can make or break your investments, so make sure to get one that matches your needs and knowledge about crypto.

Compare the best cryptocurrencies and wallets, using our comparison tool right here at glimp.

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