Best wallet solution for mining
By: Luxor Tech
Tags: Cryptocurrency Investment, Bitcoin, Bitcoin Wallet, Cryptocurrency, Mining Concepts

For those of you who are unfamiliar with Luxor, we are a multi-currency mining pool built for high quality cryptocurrency communities. Most of our pools operate on a PPS payment system, and we have PPLNS for communities that lack that option. We only back cryptocurrencies that our engineers contribute code to and invest time in. In addition, we try to support the community by giving back a percentage of our fee. We originally started by creating a Sia pool and then joined the Decred community soon after; we have since joined the BTC, Monero, ZCash, Horizen, Komodo, Pirate, LBRY, SiaPrime and AION communities.

Wallet types

Crypto wallets are design to store, send and receive cryptocurrency payments.

There are 3 main types of crypto wallets: Software wallets, Hardware wallets and Cold Storage (Paper, Cryptosteel or Bitkee).

Software Wallets

Software wallets are based on computer software. Software wallets can be found in three formats: desktop, mobile and online.

Exodus - Desktop Wallet

Desktop wallets are computer programs that store your private keys on your PC or laptop. These programs enable full control on your cryptocurrency but relay all of the security on the user. If your computer gets hacked, stolen or breaks you’ll lose access to your crypto.

Some of the most popular software wallets that support multiple cryptocurrencies are: Exodus, Copay and Electrum.

Mobile wallets are mobile phone apps that enable the user to spend their crypto on-the-go since allow to transact on physical stores. The main disadvantage is the likelihood of losing/breaking your mobile phone and therefore, your tokens.

Online wallets can be accessed anywhere with any device with an internet connection. The main disadvantage is that you are trusting a third party with your private keys.

Hardware Wallets

Ledger Nano S - Hardware Wallet

If you’re storing large amounts of cryptocurrency and you’re not planning to use them frequently hardware wallets are your best choice. These wallets are dedicated hardware designed to store safely your private keys, usually have a secure chip in them that enable the user to input a pin number instead of your private key in the computer while transacting with cryptocurrency.

The most popular options are: Ledger Nano S and TREZOR.

Cold Storage

Cold storage means generating and storing your private keys in an offline environment, away from the internet. The most popular options are: Paper wallets, CryptoSteel and Bitkee.

Paper wallets is a printed piece of paper that contains your public address and private key. It’s the cheapest cold storage option available. CryptoSteel and Bitkee improve on paper wallets by laser engraving a wallet (public and private keys) in a high quality and durable piece of metal.

Our recommendation

The best strategy is to use cold storage for long term holdings and a hot wallet for regular use.

Regarding mining, we do not recommend mining directly to an exchange. There have been numerous cases an exchange goes offline, which means you can’t access your funds. Poloniex, Bittrex and HitBTC had issues in the past. Also, exchange wallets are more difficult to troubleshoot.

To receive payouts from us we recommend using Sia/Decred/LBRY/Loki official desktop GUI wallet. Then, if you decide to exchange the proceeds of your mining operation either to other cryptocurrency or fiat, send your funds from the desktop GUI wallet to the exchange of your choice. We don’t recommend leaving your funds in the exchange. Always transfer those funds to your bank or to a hardware/cold wallet.

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