Algorand is a green blockchain developed to offer a vast array of use cases primarily to enable decentralized finance. Among the most impressive achievements of Algorand is that it is not just carbon neutral but has gone even further and made itself carbon negative in 2021.
As one of the most advanced blockchain networks in history, Algorand has garnered considerable attention, with VC money backing it and a team of professors and PhDs involved. Getting your hands on ALGO is easy as multiple exchanges have listed the token. Is it safe to store your precious ALGO on a CEX, especially in the present climate? So where should you keep your Algo? In a wallet, of course! We’ve examined some aspects of Algorand wallets already in our first article on the subject, but let’s dive deeper into the matter.
How Does an Algorand Wallet Work?
An Algorand-compatible wallet can hold public and private keys for ALGO. It functions like a conventional wallet and gives your Algo ownership proof.
These wallets keep your private keys – the passwords that give you access to your ALGO. Thus, allowing you to send and receive Algorand’s native cryptocurrency, ALGO.
Wallets range from hardware devices like Ledger to mobile apps like Trust wallet, which makes crypto shopping as easy as shopping with a credit card.
The most secure choice with offline backup and storage is a hardware wallet, also known as a cold wallet, such as a Ledger or a Trezor. However, hardware wallets come at a higher cost and with a more prominent learning curve. They could thus be more suited to storing more ALGO for seasoned users.
Software wallets, or hot wallets, are an additional choice that is both free and convenient to use. They might be custodial or non-custodial and are available as desktop or smartphone apps.
With custodial wallets, the service provider will manage and back up the private keys on your behalf. Non-custodial wallets securely keep private keys on your device.
Although useful, they are thought to be less secure than hardware wallets and may be better suited to users that use less ALGO or are less experienced.
How Many Algorand Wallets Are There?
Hardware wallets like Ledger or Trezor support Algorand. But for a novice user, a software wallet is more reasonable.
Many popular wallets support the Algorand blockchain, but not all are created equal.
Here is a list of 14 wallets that have Algorand compatibility:
- Pera Wallet
- My Algo
- Coinbase Wallet
- Trust Wallet
But which wallet should you choose? Well, it depends.
If you want to make the best of the Algorand ecosystem, then Pera Wallet should be your number one choice. The Algorand development team created the wallet. It is also the official wallet for Algorand. There is no better and more compatible wallet for Algorand than Pera Wallet.
Being an Algorand product, Pera Wallet constantly benefits from consistent development and updates. The wallet also supports hardware wallets like Ledger Nano X.
Another choice for Algorand wallets is MyALGO Wallet. This wallet is explicitly designed for ALGO by Rand Labs, an Algorand development team. The wallet is suited for web browsers, and as long as you use a browser, you can access this wallet, even on iOS, Mac, Windows, Linux, or Android.
MyALGO Wallet is the best web-based wallet you can get for Algorand.
How Do You Use an Algorand Wallet?
Using an ALGO wallet is very easy, like other crypto wallets. After deciding on an official wallet, download it to your smartphone or browser and follow the on-screen directions.
Most wallets ask you to secure a seed phrase. It is a phrase of 12 to 25 words used to back up your wallet. Once your seed phrase has been generated, you can access your wallet and start sending and receiving ALGO.
Let’s take a look at how to set up a Pera wallet.
- Go to https://perawallet.app/ and download Pera Algo Wallet.
- Click “I want to create an account” if you don’t already have an Algorand wallet. Users who “already have an account” have the opportunity to import their pre-existing Algorand wallet.
3. You’ll receive a notification instructing you to store your passphrase (seed phrase). Do not allow anybody else to access your 25-word passphrase. It provides you complete control over your account and is the only way to restore your Algorand wallet account.
4. Once you confirm your seed phrase, your passphrase will be verified, and you can set your account name.
5. The Pera Wallet is now ready for use. Press “Start Using Pera Wallet” to begin using it.
Remember to set up a six-digit PIN and bio-metrics for extra security.
Algorand Wallets for NFTs
Algorand non-fungible tokens (NFTs) are digital collectibles built on the Algorand blockchain. These tokens represent a unique asset, such as a digital artwork or a piece of digital real estate. These tokens can be authenticated and traded securely.
Algorand’s NFTs are interoperable with many existing NFT projects and platforms, allowing for the easy creation and trading of these tokens.
Ease of minting, vibrant communities, and the low cost of minting make Algorand viable for new and seasoned NFT enthusiasts.
Almost all NFT marketplaces compatible with Alogorand NFTs support Pera Wallet and MyAlgo Wallet. You cannot go wrong with either of these wallets if you are into NFTs in Algorand!
Regardless of which Algorand wallet you choose, make sure that you follow wallet security 101. Always back up your seed words and store them safely.
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