Best Cryptocurrency Wallets for Algorand (ALGO)

Algorand is a secure, decentralized and scalable blockchain. The network is a Layer 1 protocol that holds a number of similar properties to that of Ethereum – in fact, Algorand holds some advantages over Ethereum, including speed of transaction and lower fees. 

The Algorand network was developed by MIT professor Silvio Micali in 2017. Micali is recognized with a number of awards for his work including the Turing Award (computer science), the Gödel Prize (theoretical computer science) and the RSA prize (cryptography), via Algorand. 

Today, the Marshall Islands use the Algorand network to power its digital currency. This selection was largely based on the quality of network Algorand provides, with smart contract capabilities and esteemed inflationary tokenomics. If you are looking to get your hands on ALGO, you first need a cryptocurrency wallet. Read more about the best wallets to hold your Algorand tokens.

Best Cryptocurrency Wallets for Algorand

Cryptocurrency wallet selection is essential to users. Ease of use and safety should be at the forefront of your wallet decision-making. Any crypto wallet that can be added as a Google Chrome extension is a great start, granting you immediate access to Algorand trading and staking.

Selecting a secure wallet is just as important, especially if you are looking to invest a large sum of money. If this is the case for you, look into hardware wallets. These wallets are not connected to the internet and serve as an extra security valve to your crypto assets by preventing phishing scams. 

Best Software Wallets for Algorand

One of the easiest-to-use software wallets for Algorand is MetaMask because in a couple minutes you can have the MetaMask extension ready to trade. 

MetaMask Wallet

MetaMask is added as a browser extension on your laptop, providing easy entry into Web3. Once MetaMask is installed, you can access SushiSwap, a decentralized crypto exchange. MetaMask is also great for engaging in DAOs, DeFi,  dApps and NFTs.

Coinbase Wallet

Another great option is the Coinbase wallet. This wallet is easily connected to the Coinbase exchange, making it quick and simple for users to swap tokens. The relationship between the exchange and wallet has been a great marketing tool, making Coinbase wallet one of the most used wallets today. 

Best Hardware Wallet for ALGO: Ledger Nano S

To safely hold your ALGO, a hardware wallet is critical. The disconnect from any phishing sites acts as an extra layer of security and prevents scams. With a set of keys unexposed to the internet, you can sleep easier knowing your ALGO is safe. 

A great hardware wallet on the market is the Ledger Nano S. This hardware wallet gives many in the crypto space an extra layer of security that software wallets do not. If you are holding more money than you are willing to lose, it is highly recommended to store those assets in a hardware wallet of some type.

Do You Need to Use a Crypto Wallet?

Algorand does not require the use of a crypto wallet to buy the token. The use of an exchange such as Coinbase or Gemini is a popular solution to buy ALGO. However, by using exchanges, your keys rest in the hands of that exchange. Thus, the crypto is held by a central authority, largely defeating the purpose of crypto and decentralization.

Where to Earn Interest on Algorand

If you are looking to put your ALGO to work, you can do so by staking for interest. Crypto.com provides a competitive APR for staking. Another important note about ALGO is you can earn interest without freezing your funds like most other staking protocols require. You hold your funds for a period of time, and your supply of ALGO will increase. This capability is most easily accessed when you have your own crypto wallet and set of keys.

Cryptocurrency Wallet Best Practices

The first rule to follow is to never share your seed phrase because the seed phrase acts as the only lock on your assets. Also, there is no resetting a seed phrase if it is forgotten, leaving open the risk that your assets could be locked and unrecoverable. A couple devastating cases have left crypto holders without access to their fortunes. Thus, it is incredibly important to store your seed phrase in a safe location off the internet.

Another important rule to follow is to read contracts before signing them. Hackers have users sign unfinished contracts and then complete them after a user signs, often using this technique to steal assets. The NFT marketplace, OpenSea, underwent a hack of this nature where millions of dollars in NFTs were lost. Many users are unable to read and comprehend contracts, but everyone should understand when a website is suspicious or a contract signature would be out of the ordinary.

Are Cryptocurrency Wallets Worth It?

To explore DeFi, smart contracts, dApps and DAOs, a cryptocurrency wallet is essential. Cryptocurrency wallets connect users to the features of Web3 that exchanges do not. Downloading a wallet is a great way to start learning more about this developing ecosystem and get a better idea of the actual networks that these tokens represent. While there is risk in holding your own keys, safe practices can prevent damage.