Keeping Multiple Wallets

What if a single wallet doesn't meet all the needs of your cryptocurrency account? Coin Pursuit will check out why many investors keep more than one.

There's nothing to say you can't keep more than one wallet for your digital currency. The most obvious reason to to do so would be if you're invested in more than one type of currency; you'd keep one wallet for your Bitcoin account, one for Litecoin, and so forth. What might not be so obvious is that many cryptocurrency investors keep more than one wallet, even if they've only invested in one type of currency.

Since different wallet types can serve a variety of different functions, it's fairly common for investors to maintain more than one wallet for their cryptocurrency investments. They'll have a software wallet on their PC or laptop, a mobile wallet for their smartphone or tablet, and maybe even a paper wallet to tuck away a few hard-copy alternative currency “bills.” Or they may opt for a web wallet, rather than store one on their personal computer. Some investors go all out and keep one or more of all four wallet types, just to make sure they've got all their bases covered. Conversely, some folks who are strictly in it for investment purposes may just quietly keep one no-frills wallet. It all depends on your personal preferences, such as how often you like to check on your account and its related statistics, and how often you make trades and purchases.

There's one caveat to keeping multiple wallets, however: the more you have, the more maintenance and responsibility you'll have to assume. In a previous section, we discussed the importance of keeping first-party wallets updated, and in an upcoming section we point out that it's critical to keep your account safe by keeping it offline as often as possible. Well, all those security and upkeep tips will apply double or triple if you keep two or three separate wallets. You'll gain a lot of flexibility and account access, but the tradeoff is you'll have to take extra time to assure all your wallets are up-do-date, secure, and in synch with one another (if they apply to the same digital currency account).

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