Home Technology Cryptocurrency What is an open-source crypto wallet?

What is an open-source crypto wallet?


Crypto wallets are the backbone of any cryptocurrency system. It allows users to store, send and receive digital assets securely. The primary function of a crypto wallet is to store private and public keys and manage transactions using them. 

However, not all crypto wallets are created equal — some of them aren’t even secure! 

And that’s why we’re going to look at open-source crypto wallets and why you may want to consider using one.

Wallets can be hot or cold

There are two types of cryptocurrency wallets: hot and cold. A hot wallet is any wallet connected to the internet, while a cold wallet isn’t. 

Hot wallets are generally more flexible, i.e., they allow you to send/receive crypto tokens from anywhere. Cryptocurrencies have become highly valued commodities over the years, making hot wallets a favorite target for cybercriminals.

Also known as hardware wallets, cold wallets store your tokens offline, which makes it much more difficult for cybercriminals to access them. Additionally, cold wallets can be physically secured to provide you with an added layer of protection.

Due to this, cold wallets are used by investors and even crypto exchanges looking to store large quantities of crypto tokens safely. However, hardware wallets lack much of the flexibility offered by hot wallets. You can visit Tezro blog to find out more about flexible wallets that are also multi-currency.

You will have to connect the wallet to a computer with an internet connection in order to send/receive crypto tokens. But the security offered by such devices makes it a good choice.

What is an open-source crypto wallet?

Open-source software allows anyone to examine, modify and redistribute it for free. That means that any flaws in the code can be found by the community and fixed quickly. It also means that any new features can be added with minimal effort, which is why open-source crypto wallets are seen as a safer option.

Open-source software makes Bitcoin wallets more secure because it’s easier to spot bugs (since anyone can look at the code). And since anyone can contribute to an open-source wallet project, they’ll likely be more secure as well—since many people are working on them all the time instead of just one company trying to keep everything under wraps.

As we all know, hackers are becoming increasingly sophisticated and are continually developing new ways to cheat unsuspecting victims. And one of the most dangerous ways they can do so is by creating fake crypto wallet apps.

These fake wallets look and feel just like any legitimate crypto wallet and can even store your cryptocurrency. The difference is that the phony wallet contains malicious code, allowing a hacker to siphon out your tokens secretly. By the time you realize that something’s wrong, it’s already too late.

This shows us the benefit of using an open-source crypto wallet. With it, you and other users can look at its source code, reducing the risk of accidentally downloading a fake crypto wallet.

Best open-source wallets 

Now, let’s take a look at the best open-source wallets around in 2022:

1. Mycelium 

Mycelium is one of the oldest crypto wallets around. And it stands out from the crowd thanks to its large selection of security features and advanced trading options. More importantly, it’s also an open-source wallet and is regularly audited by third parties looking for security flaws.

2. Electrum

Electrum has a strong 10-year track record of solid security performance. As an open-source wallet, it has received more than 14,000 contributions from expert developers worldwide. It is also a non-custodial wallet that let’s users have complete control over their private keys.

3. MyEtherWallet

MyEtherWallet is specially developed for hardcore Ethereum enthusiasts. It supports Ether and ERC-2O tokens along with non-fungible tokens (NFTs).

We hope this article has given you an understanding of an open-source crypto wallet and why it may be more secure than other types of wallets.

Remember that security and flexibility are the most important features when choosing a crypto wallet, so bear that in mind.