What are the Advantages of Multi-chain Wallets Compared to Single-chain Wallets
When managing our crypto assets, crypto wallets are essential tools that help us store, manage, and trade cryptocurrencies. Crypto walletscan be put into many different categories. There are cold wallets and hot wallets depending on the Internet connection. According to the specific property, there are hardware wallets, App wallets, web wallets, etc. Based on the storage of data, crypto wallets can be divided into full node wallets and light wallets. Wallets that allow the user to hold the private key by themselves are known as decentralized wallets, whereas those that do not are referred to as centralized wallets. Moreover, in terms of the number of public chains supported by the wallet, there are single-chain wallets and multi-chain wallets.
A single-chain wallet only supports one public chain. For instance, Bitcoin Core, the official wallet of Bitcoin, is a typical single-chain wallet as it only supports BTC. As such, when using a single-chain wallet, you can only manage, receive, and transfer your crypto assets on one public chain. For example, users of MyEtherWallet, an Ethereum single-chain wallet, can only deal with ETH and token assets issued on Ethereum.
However, most crypto holders own more than one type of assets. In light of this, single-chain wallets fail to meet the need of managing different assets. In addition, many investors prefer building up a portfolio to diversify the risks. For instance, some investors may hold different types of token assets, such as BTC, ETH, and BCH, and different wallets are needed if they only use single-chain wallets. This also means that you need to maintain multiple private keys or mnemonic phrases. The more kinds of cryptos you hold, the higher the cost of asset management will be.
In today’s crypto world, the types of public chains continue to diversify. For instance, public chains such as Ethereum, Avalanche, BSC, and Terra are all leading players in terms of market cap. Moreover, their ecosystems and applications are also flourishing. You can try out different DApps on various public chains. Considering that the returns from DeFi projects vary among different public chains, many investors often adopt several applications on multiple public chains at the same time.
To address such a dilemma, multi-chain wallets are born. As its name suggests, multi-chain wallets support the management of crypto assets on multiple public chains. Relying on multi-chain wallets, users can deal with assets on all kinds of public chains with only one wallet, which means that they no longer have to maintain different mnemonic phrases and that only one mnemonic phrase is needed to keep track of the private keys of different assets.
For example, CoinEx Wallet, a decentralized multi-chain wallet that is secure and easy to use, supports 45 kinds of coins, such as BTC, ETH, TRX, CET, AVAX, and LUNA, as well as over 1 million types of tokens. For users, a multi-chain wallet like CoinEx Wallet meets all their needs in terms of asset management.
CoinEx Wallet is industry-leading in terms of the kinds of public chains and assets supported. Plus, the list of public chains and crypto assets available on CoinEx Wallet is still getting longer. Meanwhile, to keep the app safe and secure, it has introduced a wide range of security mechanisms, including the app lock, security password, mnemonic phrase password, and ciphertext QR code, which means that you can fully trust CoinEx Wallet with the management of your assets across multiple public chains.
In the blockchain space, wallets are an important entrance to blockchains and crypto assets. In a sector that emphasizes the ownership of assets and data, users can only obtain true ownership of crypto assets if they adopt decentralized wallets. However, we must also admit that such an approach also makes asset management more challenging. Despite this, it is evident that the advent of multi-chain wallets has made crypto wallets more accessible. These wallets aggregate the assets on different public chains into one account for unified management, which also allows users to flexibly switch between different public chain applications. In a nutshell, with multi-chain wallets, users can manage all kinds of digital assets with greater ease and convenience.