Crypto wallets are used to transfer, receive, and store digital assets. However, not all wallets are suitable for all your needs. One type of wallet to consider is the burner wallet, which can help you get more out of your crypto transactions.
What makes this type of crypto wallet so useful? And what does it do differently from other wallets? Here’s everything you need to know about burner wallets and how to use them.
What Is a Crypto Burner Wallet?
A burner wallet is a temporary crypto wallet you can use to make transactions, mint NFTs, or interact with decentralized applications (DApps) that are yet to be verified. Burner wallets are widely referred to as instant wallets.
Each burner wallet creates a temporary key, which allows the user to sign transactions. However, you don’t need to memorize the seed phrase, as the private key pair is automatically generated and stored in your web browser.
A burner wallet is the best choice if you want to make a small transaction without your main crypto wallet or mint NFTs without fear for your assets.
3 Reasons You Might Use a Crypto Burner Wallet
Here are reasons for you to use a crypto burner wallet
1. To Safeguard Your Wallet from Scammers
The first and most important reason to use a crypto burner wallet is crypto safety. Unfortunately, with the rise of many opportunities in cryptocurrency, we’ve also seen a rise in crypto scams. Unfortunately, newbies in the space often fall prey to these crypto scams, especially in the hunt for coins and NFTs (but old-hats fall victim, too!).
A burner wallet will hide your wallet value so that even if you interact with a malicious DApp, you can be sure that your holdings are secure in your vault.
2. To Mint NFTs Safely
Almost every day, a new NFT project launches on Twitter, Reddit, OpenSea, or anywhere you care to look. But while new NFT projects are launching, numerous NFT scams exist.
In the search for profits, you should also be careful not to fall for phishing attacks masquerading as NFT minting schemes, which can allow attackers to gain access to your crypto vault, drain it, and leave you in depression.
Use a burner wallet to mint safely without the fear of any hacker. The wallet won’t allow hackers to access your asset vaults while you mint NFTs.
3. To Process Crypto Payments
Paying with crypto is one of the most seamless payment systems available, especially if you find yourself in El Salvador. But while paying with crypto is very easy, you should be careful of scammers ready to prey on you.
With a burner wallet, you won’t have to expose your digital assets to insecure transactions. Rather, you can send the amount you need for a quick and small transaction to your burner wallet and pay for whatever you need without fearing that your wallet will be compromised.
2 Benefits of Using a Crypto Burner Wallet
Using a crypto burner wallet comes with two major advantages.
1. It’s Easier to Use
Knowing that you can use a wallet just for a specific purpose and discard it afterward may sound too complex. But it is very simple to use. You can even create a crypto burner wallet from your smartphone, use it, then discard it.
2. Helps Mint Faster
Apart from being easier to use, a crypto burner wallet that is also a hot wallet, such as Metamask, will help you mint your NFT faster without hassle. Generally, a burner wallet delivers a temporary identity for any crypto-related task you intend to complete, which assures you of the safety of your main wallet assets.
Best Crypto Burner Wallets
Here are some of the best crypto burner wallets you can explore, along with their blockchains.
5 Tips for Using Crypto Burner Wallets Safely and Effectively
To effectively use a crypto burner wallet, check out these key tips:
- Only transfer funds to your burner wallet when you intend to process a transaction. Do not store assets in a burner wallet.
- Never mistake your burner wallet for your main wallet. Remember, it is only for temporary use. Don’t make it permanent, or you may fall victim to a crypto scam or lose access to your funds.
- Always use a hardware wallet alongside your burner wallets if you can. Check out Trezor, Ledger, or any other hardware wallet.
- Always shuffle your burner wallets to stay safe from scammers. Don’t use one burner wallet; change it intermittently. By doing this, you can confuse those seeking your hard-earned crypto.
- You can set an Ethereum Name Service (ENS) address for your burner wallet private key for your transactions. However, since it is not a permanent wallet, you shouldn’t keep using it for every burner account you create.
Crypto Burner Wallets: Useful or Not?
For you to make transactions temporarily, a burner wallet uses a meta-transaction system to remove technicalities from your end. Burner wallets also provide a trust system for you whenever you want to make a transaction.
As a result, the chance of your wallet being compromised is hugely eliminated. This means you can freely mint an NFT and make payments with crypto. Even though you encounter phishing links, fret not. The burner wallet will step up to the plate!