Why You Need 3 Crypto Wallets

2 Min Read

Partitioning Your Assets

This is the act of breaking up your assets into different crypto wallets that are designed for different use cases. You’ll need at least 3 crypto wallets for max security (there’s much more you can do on top of this such as hardware wallets).

Mint/Buy Wallet

  • This is a place for NFTs before they move to the vault wallet explained later.
  • It’s also not a big risk to keep low value NFTs here until they become valuable, but generally best practice to move to the vault wallet detailed later.

Sell/Trade Wallet

  • Only NFTs that you want to sell or trade are in this wallet and only move them here when you intend to do so soon.
  • Make sure that you cancel listings when you decide to delist an asset and not just transfer it to another wallet. Otherwise, if you ever transfer the asset back into this wallet that old listing will immediately become valid and someone might buy your NFT for a lot less than it’s worth.
  • It’s also ok to mint or buy with this wallet if you’re intending to flip the asset fast, but make sure that you know what you are signing if you do this.

Vault Wallet

  • This wallet should only transfer assets to and from your other wallets.
  • This is for assets that you’re going to hold for a long time and/or are especially valuable.
  • There should be zero token approvals for this wallet.
  • Confirm this by looking for ERC-721 approvals on revoke.cash. There shouldn’t be any.

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