Cryptocurrencies are built and deployed on blockchains using protocols that define how they are minted and used. So, while BTC (Bitcoin) is a cryptocurrency of the Bitcoin blockchain, there are other cryptocurrencies built on the blockchain. There’s also the ETH (Ether) cryptocurrency, the native token of the Ethereum blockchain network, and other cryptocurrencies built on the Ethereum blockchain.
A crypto user wishing to store cryptocurrencies may download a wallet that allows only storing cryptocurrencies built on the Ethereum blockchain. Such a wallet will allow users to store ETH and other tokens created using Ethereum protocols. That wallet is called a single-coin wallet.
A multicoin wallet allows crypto holders to store their tokens from different blockchains. A multi coinwallet accepts tokens from compatible blockchains, so users can store hundreds or thousands of tokens in one place from centralized exchanges.
Having a multi crypto wallet provides many benefits, from tracking your assets to earning profit through yield farming and other investments. Traders can quickly check their coins in wallet on any blockchain and even scan for changes using special tools. With a multi wallet traders can perform trading operations easily, knowing where their assets are stored.
Another benefit is the incorporation of DEX (decentralized exchanges) on multicoin wallet, so that traders can explore the market directly from their wallets. This integration allows traders to send or receive or swap cryptocurrencies right from their wallets by connecting to a website or exchange.
There are many examples of multi wallet available on the market today. TrustWallet, AtomicDEX, LUNA, ECOS, and Coinbase are common examples. Most multicoin wallets support cryptocurrencies built on Bitcoin, Ethereum, BNB, ERC-20, and BEP-20 protocols, among others.
Security of Multiple Crypto Wallet
All multi wallet crypto apps use the same security protocols as single-coin wallets. They are secured using 12- or 24-word phrases, passwords, biometrics, etc. Multcioin wallets also receive regular updates to fix bugs and strengthen security. Multicoin wallets are usually non-custodial; traders have full access and control of their private keys.