Page 220 - A Canuck's Guide to Financial Literacy 2020

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There are three types of wallets:

▪ Online Wallets: These wallets run on a cloud and are accessible from any computing
device. The quickest to set up but also the least safe as they run on a third-party
platform and can be vulnerable hacking attacks and theft.
▪ Software Wallets: An app you download to a computing device. Safer than an online
wallet.
▪ Hardware Wallets: A portable device you plug into your computer such as a USB.
This is the safest option.

Before you decide on the type of wallet to choose from, make sure that it can store multiple
currencies or the cryptocurrency that you’re thinking about purchasing.

Crypto-currency Exchanges

Cryptocurrencies can be purchased through cryptocurrency exchanges. Exchanges are a
popular and simple way to buying cryptocurrency. Most exchanges accept payment by
credit cards, bank transfer or PayPal. Exchanges typically charge a transaction fee of 1%-
4%.

Similar to wallets, exchanges have their own level of security and it’s important to do your
research and choose a reputable exchange.

During the registration process, exchanges will verify your identity before allowing you to
purchase cryptocurrency. You’ll likely be providing your full name, address, phone number
and a copy of a government issued ID.

If you’re in a hurry to purchase cryptocurrency, be mindful of any waiting period.