Besides top crypto wallets, crypto exchanges have also become quite popular in India. So, what is the difference between crypto wallets and exchanges, and which is the most secure option? In this article, we will delve into the definition of each term and the differences between both. Read on to find out more.
Investing in crypto can be a nightmare, especially for beginners. The trade itself seems intimidating enough without the complex terms being thrown around. If individuals don’t carry out enough research, they can make costly mistakes. On that note, investors are required to choose between a wallet and an exchange to start their investment journey. Here are what both mean and their differences.
What is a Crypto Wallet?
When talking of crypto wallets, think of a regular wallet; instead of carrying your cash in hand, you put them in your wallet. A crypto wallet is a program that enables a trader to store their cryptocurrencies, coins, or tokens. Also, investors can choose between cold and hot wallets, and you are most likely using a cold wallet. The former remains online at all times, meaning it’s vulnerable to cyber-attacks and hacking. On the other hand, cold wallets remain offline, making them more secure and less susceptible to tampering.
However, the advantage of hot wallets is that they are time-saving as storage takes minimal effort and time, which makes them more popular. Although there have been hacks that led to millions of dollars in the past, crypto wallets have improved to ensure safer, preventing such occurrences. Crypto wallets come with private and public keys to control the wallet.
Private keys are similar to a password. They facilitate signing transactions when you want to transact a crypto unit token. Therefore, you need to keep these keys safe because you lose your balance if someone gets access to private keys. Public keys act as the username allowing you to receive tokens from other users.
What Is Cryptocurrency Exchange?
On the other hand, a crypto exchange is a service or site where you can buy and sell digital currency or carry out the conversion of currency such as fiat into cryptocurrencies. Like the stock exchange, the crypto exchange fluctuates in price, making this service important. An exchange has a web-hosted wallet which requires users to create an exchange account and log in to use it.
Before exchanges, if you wanted to buy cryptocurrencies, you would have to wait for someone willing to sell the coin then agree on the exchange rate before sending the crypto to your wallet. Complicated right? The exchange is accessible using an app or directly on the site.
The main difference is that a wallet is designed purely for storing cryptocurrencies. At the same time, an exchange facilitates transactions and conversion of the token into currency and vice versa. Each has its own advantages. A wallet is super easy to access, allows long-term crypto storage, and is highly secure from malicious hacking. Exchanges enable the conversion of currency into crypto coins which is a significant advantage.
Indian Crypto Exchange With The Lowest Fees
There are a bunch of crypto wallets and exchanges in India that will offer all the services we have mentioned. If you are looking for the lowest fees, look at what we have compiled for you.
Binance
Binance is one of the most popular crypto exchanges worldwide. Users can transact over 350 altcoins and tokens, including BNB, a coin owned by the platform. You can also make money by staking and earning interest from crypto holdings. The app also offers users a chance to trade among peers, execute advanced trading methods such as futures and options and undertake margin trading. You can even take out loans in crypto.
Wazirx
You might already be familiar with this exchange, given its popularity on social media. The app allows investing using USD, INR, BTC, and even P2P. It even has its own WRX coin, which can be bought using INR.
Coindcx
This is a versatile crypto assets trading app recognized in India. You can buy and sell up to 200+ coins, and it’s pretty easy to use. The set-up process has been simplified using a one-time password on the registered device. The charges are just 0.1% of the transaction with up to Rs. 1000 free. You can deposit money in your account using NEFT, IMPS, RTGS, or a simple bank transfer.
Coinbase
This is an international exchange platform based in the US but offers investors worldwide an intuitive platform for trading. It has never experienced any significant breach, which adds to why you need to try it. There are also frequent updates such as customer support to improve the site’s functionality and keep up with increased demand. Coinbase India has fewer altcoin options with just over 50 coins to trade.
Kraken
This is another popular US-based exchange that offers services to Indian investors. The platform has existed since 2011, making it the 3rd largest by trading volume and international presence. It provides 24/7 customer support so you can never be stranded and a high-security level for all users. You can trade by depositing INR fiat into your account, but it offers less than 50 coins to trade.
Key Takeaways
- Crypto wallets are software that allows users to store coins and tokens.
- Exchanges facilitate buying and selling cryptocurrencies as well as conversion to and from fiat currency such as INR and USD.
- Crypto Exchanges are more as they offer versatility.
