Reasons Why You Need Multiple Cryptocurrency Wallets

If you’re planning on getting into crypto, you’ll need to set up your crypto wallet before you decide which currencies and fiat money to invest in. This is where you will organize your crypto portfolio. Each wallet comes with a private key that allows access to the contents of the wallet.

So, many people often ask how many currency wallets they need to have. The answer is simple. You can have more than one digital cryptocurrency wallet or take advantage of the many multi-cryptocurrency wallets where you can store all your alternative currencies in one place.

As for businesses, if you have considered starting to accept payments in currency, the first thing you need to figure out is how to manage multiple crypto wallets to store your currency.

Just like with regular bank accounts, and traditional cash registers, your business should avoid having all of your crypto stored in one place. 

It is always a good practice to have multiple wallets designated for specific purposes. At a minimum, your business should have two wallets: one for managing and growing your cash reserves and one where you send and receive payments.

The main reason businesses need multiple wallets is because of top-notch security features like 2FA (two-factor authentication), SSL encryption and password recovery. These features ensure the safety and security of your crypto assets.

Multiple crypto wallets allow businesses to send and receive payments quickly and easily. This is important for businesses as they can trade without waiting days or weeks.

Having multiple wallets means having access to multiple currencies. This allows companies to diversify their portfolios and hedge risks. It also opens up new opportunities for businesses to accept payments in different currencies

So, diversification in terms of the storage of currencies and fiat money is essential. You can’t rely only on one wallet. Unfortunately, one of your wallets can be destroyed or lost.

And in such cases, your other wallets can help you recover your currency funds. However, if you can’t have multiple wallets, then you should have at least two wallets to store your currencies and fiat money safely. So here are the reasons why you should have more than one crypto wallet, and GOCHA is ready to guide you in that direction.

For Creating Awareness And Education

Crypto wallets are the basic building blocks for securing your currencies and fiat money. Not using a wallet is like ignoring an industry’s best practices.

According to Zippia, as of February 2021, there were 68.42 million crypto wallets worldwide. This number has grown substantially since 2015 when there were only 3.16 million crypto wallets globally.

That’s if you are someone who knows how to use crypto wallets, then you need to volunteer to teach others about it. Create awareness about crypto wallets and make people understand why they shouldn’t store their currencies and fiat money on exchanges or unreliable wallets.

You should also consider a few factors to consider when choosing a currency and fiat wallet:

  • Customer service: It’s a good idea to choose wallet support that is always available and helpful, especially if you’re new to cryptocurrency ownership.
  • Fees: Third-party hot wallets may charge transaction fees, ultimately reducing your profits.
  • Security: Make sure your wallet provider is trustworthy and has sensible security measures in place to protect your cryptocurrency keys.
  • Types of cryptos supported: Some wallets may only support a handful of crypto projects, while others may support a hundred currency projects. 

Clone Of Your Wallet

Cloning is an easy way to secure your cryptos. It simply means having the same wallet with the same seed in two separate wallets.

For example, you have set up a new wallet. Let’s say Ledger Nano X. You keep this currency and fiat wallet at home and make transactions from it often.

Another wallet you have at your workplace. This is Ledger Nano S, but you have the Ledger Nano X wallet clone on this wallet. So now, you can access the same funds from the office too.

To make a clone, you need to use the exact seed words in both wallets. In the above example, if you use the same seed of Nano X in Nano S, you get a clone allowing you to access the same funds from either of these wallets.

Backup and Restore Purposes

It is good to have two or more wallets for backup and restore purposes because you cannot risk losing your valuable crypto investments.

For each wallet, you will be given some form of passphrase or key as your backup. These passphrases and keys are only as secure as how you store them. 

There are public and private keys. Public keys allow for other wallets to make payments to the owner’s wallet address. Private keys allow the payment or spending of cryptocurrency from that address. GOCHA focuses on safety. The user gets full control over the private keys of the wallets created with our solution.

It is important to note that if you lose your private keys, your currency is lost. This is why it is very important to consider how your private keys are stored.

In other words, Bitcoin or other cryptos don’t get hacked – the devices that store private keys do. Some wallets keep these private keys offline, and other wallets or exchanges often hold them for you online.

This is why it is up to you to decide how you want your private key to be managed, and you decide this when you choose your cryptocurrency wallet type.

So if you want to create several cryptocurrency and fiat wallets, contact our professional team will do their best to fulfill your goals.

Textcoins service

Textcoins service allows you to send currencies via email, chat, or other text-based media. The sender does not need to know the recipient’s Obyte address. They send money to an address they know, such as an email address or chat contact.

It is even possible that the recipient doesn’t have an Obyte wallet yet. In this case, the recipient will be prompted to install it in order to claim the received funds.

The sender just types the recipient’s email address instead of the Obyte address when sending funds from their Obyte wallet. A textcoin will be generated and sent via email. 

Textcoins are usually delivered as a clickable link containing 12 secret words. In this case, when the link is clicked, the recipient’s wallet will automatically transfer the funds from the temporary textcoin address to the recipient’s own address.

If delivered as plain 12 secret words, the recipient can manually claim funds by entering the words in their wallet.

If the recipient doesn’t claim the funds, the sender can claim them back, so the money is not lost.