Before buying or mining the best privacy coin, Monero, you need to have an XMR wallet. Monero is unique in that its cryptographic technologies guarantee users their privacy and anonymity on the blockchain, but Monero wallets pretty much work just like any other crypto wallet. Aside from having a secure storage for your coins, a wallet enables you to manage your XMR. Some XMR wallets allow you to store, buy, sell, and trade XMR and other cryptocurrencies. Whichever device or operating system you are using, there is a Monero wallet that is perfect for your needs.
Common characteristics of XMR wallets
Security and privacy-Monero is secure, untraceable, fungible, and private. Developers of Monero wallets offer to amplify the coin’s privacy features. Those that are open-source allow anyone to inspect, modify, and enhance. Some wallet apps include additional security options, such as multi-factor authentication or multi-signature. Whichever XMR wallet you use, every transaction on the network is private and is not available to third parties. To further protect privacy, there is a growing number of hierarchical deterministic (HD) wallets. These wallets store the public and private keys of an account and only the account holder has control of the XMR in it.
Transaction fee handling-transaction fees are inevitable. You need to pay for transaction fees each time you send XMR. Wallets vary in how you can handle transaction fees. Wallets that allow for full control show you the recommended fees and you can adjust them manually. Those that give users partial control show recommended fees and you can choose from the list. Some wallets have predetermined fees and you cannot change anything.
Device requirements-if you want to mine or prefer storing the Monero blockchain on your computer, you need a minimum of 64-bit for any operating system, 4GB of RAM, and 45GB of disk space. Web, mobile, and hardware XMR wallets do not require you to download the blockchain.
Free to use-reputable wallets are 100% free to use, except for blockchain fees for each transaction. Some wallets cover those fees, while other let you choose.
Types of XMR wallets
Desktop wallets-these are installed on a desktop computer or laptop. Miners and those who run a complete node of the blockchain use these wallets. A disadvantage of desktop wallets is needing more disk space as time passes because the blockchain is constantly growing. Another disadvantage is if you connect your computer to the internet, it becomes a less secure wallet.
Mobile wallets-these are software or apps that enable owners to manage their XMR using their cellphones or tablets. This is very popular nowadays as many people want almost everything, including crypto, literally at the tips of their fingers. You do risk losing your XMR if your gadget is lost or damaged.
Web wallets-they exist on websites or as an online service. You have access to these anywhere, anytime, as long as you are online. This makes your wallet vulnerable to malware, phishing scams, DDoS attacks, and outdated security patches. Some wallets do not let you have control over your keys and the companies behind them can just walk away with your digital assets.
Hardware wallets-are devices that look like a thumb drive. It is the safest wallet option because it is not exposed to the internet. The major downside is they are expensive and not very user-friendly.
Extras in some XMR wallets
Fiat on-ramp and off-ramps-some wallets enable users to use fiat to buy XMR (on-ramp), as well as exchange your coins for a fiat currency.
Built-in exchanges-users can buy, sell, or trade XMR in exchanges that come with the Monero wallet.
Multi-coin support-you can manage different crypto coins aside from Monero while using these wallets.
Savings accounts, loans, staking-some wallets allow you to create savings accounts, stake, and take a loan using your XMR. Your coins earn interest while in a savings account or when you stake them and you can use your digital funds to get cash when needed.
Choosing the best Monero wallet depends on what your lifestyle, requirements, and how much security you want for your Monero transactions. Whichever wallet you pick, it is important to remember that:
• Transactions are private.
• Transactions are irreversible.
• The sender pays transaction fees.
• Transaction fees do not depend on the amount sent.