Binance Chain Wallets
There are many Wallets available for investors to store their BNB holdings. Before beginning to discuss the three types of Binance Chain Wallets, it is important to distinguish the two types of Binance coins.
Originally, the genesis of the BNB coin was based on an ERC-20 standard. From the onset this meant BNB was required to be stored on an Ethereum compatible wallet. However, upon the launch of the Binance Main Net, BNB was transformed into a BEP-2 standard coin. What this means is that BNB retained the equivalency of an ERC-20 coin, but it now existed on Binance's own chain.
When the DeFi heavy Binance Smart Chain was introduced, Binance likewise created yet another coin native to the Smart Chain and incompatible with the Main Chain. The confusion does not end there however as this new token is likewise enumerated BNB. The difference between these two coins lies in their underlying standard. As noted above, BNB Main Chain is based on a BEP-2 standard (and may be used on the Main Chain but not on the Smart Chain) and the BNB Smart Chain token is based on a BEP-20 standard (and may be used on the Smart Chain but not on the Main Chain).
The workings of the standards is not relevant to the subject at hand, but when discussing Wallets for BNB the distinction must be noted. When choosing a BNB Wallet, a user should choose a Cryptocurrency Wallet that supports both the BEP-2 AND BEP-20 standards for storing their BNB coins/tokens.
THREE TYPES OF WALLETS TO STORE BNB
There are three basic types of Wallets available for storage of BNB coins/tokens: paper wallets; software wallets; and, hardware wallets. The first type may be dealt with with all due dispatch.
PAPER WALLETS: "A paper wallet contains a public and private key pair for making crypto transactions. It is generally created with a key generator program and printed on paper as two strings of characters and two QR codes. A paper wallet is a noncustodial cold storage wallet — meaning you control the keys yourself, and the wallet is not connected to the internet." [Cryptopedia. "What Is a Paper Wallet?" https://www.gemini.com/cryptopedia/paper-wallet-crypto-cold-storage. (Accessed June 24, 2021)]. With the advent of better software and hardware solutions for Cryptocurrency storage, paper wallets, once widely used, have become obsolete.
SOFTWARE WALLETS: Software Wallets permit a user to store the private wallet key online, keeping the coins and tokens you own safe and accessible. A software wallet likewise permits the user to easily send, receive and spend all types of cryptocurrencies.
A user can store assets in a Binance.com account or Binance Chain account and may use Binance Wallet Direct to easily transfer assets between the two.
Today, there exists a wide array of software Cryptocurrency Wallets for a user to choose from, most of which store coins from other chains besides BNB. Some suggestions will be provided, but it is recommended that each user investigate fully the array of crypto wallets available and choose one which the individual user is comfortable with. In this regard due diligence must be exercised in doing your own research. Some of the most popular software wallets include:
- TRUST WALLET: Trust Wallet is the most popular mobile-only Cryptocurrency wallet available. It allows BNB holders to safely secure and manage their assets while retaining full control of their private keys at all times. Using Trust Wallet permits the user to store coins from all of the major cryptocurrency networks in addition to BNB.
- METAMASK: Metamask is a wallet that is available as a browser extension and a mobile application. Users can connect to the Smart Chain and hold their assets on chain through an inbuilt token wallet for all of the BEP20 coins held, together with an integrated token exchange built in.
- BINANCE CHAIN WALLET: Binance Chain Wallet is the native wallet application for Binance, available as a browser extension for Chrome, Firefox, and Brave. It allows users to transfer assets between the two chains, interact with decentralized finance products and decentralized applications and safely store their BNB.
- ATOMIC WALLET: Atomic Wallet is one of the more popular multi-functional desktop wallets available for BNB holders. Atomic Wallet provides the same security protocols as he Binance Chain wallet, as well as permitting inbuilt swap functions through “Atomic Swap”, allowing users to exchange their assets to BNB and vice versa, all from within the wallet.
There are many other software Wallets available on the market but the above appear to be the most popular. No specific choice of Wallet is provided to the users herein and you are reminded to do your own research in choosing an online 'hot' software cryptocurrency wallet.
- HARDWARE WALLETS: "Hardware wallets use a physical device or smartcard to store the user’s private keys and act as more of a physical cryptocurrency wallet. They are beneficial for long term hodlers due to its immunity to computer viruses. To use a hardware wallet, the user has to connect to the manufacturer’s web interface to initiate or verify transactions sent to their public keys." [Aki, J. "Best Hardware Wallets (2021) – Ultimate Guide". https://beincrypto.com/learn/the-ultimate-guide-on-the-best-hardware-wallets-in-2020/. (Accessed June 24, 2021)]. Hardware wallets are also known as “Cold Storage” wallets, as they are designed for long-term storage of assets as in safes or other safe places.
In much the same way as software wallets, there exists a wide array of hardware Cryptocurrency Wallets for a user to choose from. Some suggestions will be provided, but again it is recommended that each user investigate fully the array of crypto wallets available and choose one which the individual user is comfortable with. In this regard due diligence must be exercised in doing your own research. Some of the more popular hardware wallets include:
- LEDGER: Ledger has proven itself to be the most popular hardware cryptocurrency wallet on the market. It provides a high level of security for BNB storage. Best of all it is easy and simple to configure. To use a Ledger wallet, users simply plug it into the USB port of their computer. Ledger is only functional in-person, ensuring the safety of your assets as the accounts private keys are stored offline.
- SAFEPAL: SafePal is the first hardware wallet that is backed by Binance Labs. Users can safely store, manage and trade their crypto assets using the app and as well manage their NFT holdings. SafePal offers full offline interaction through an “Air-gapped” protocol, meaning there is an absence of a Bluetooth, WiFi, NFC or USB connection requirement so as to interact with the Safepal wallet.
There exists in the market today a wide array of storage wallets available to hold the BNB assets you own. It is critical that the user fully investigate which wallet function they require as well as their individual preference for style. The choice of wallet is a very important one so doing your own research is imperative to insure the wallet is fit for your needs and is comfortable for you to use.
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