Types of Cryptocurrency Wallets?

There are lots of different wallet types available and the one you choose will depend on your personal needs. Essentially, different wallets offer different things, such as extra security, user-friendliness or convenience. I will now list the most popular types of cryptocurrency wallets.

Desktop Wallet

Desktop wallets are to be downloaded to a specific laptop or computer and they can only be accessed from that particular device. Generally speaking, they offer a good combination of security and convenience. However, it is important to remember that if a hacker were able to remotely get hold of your device, they could gain access to your wallet.

Mobile Wallet

A mobile wallet is very similar to a desktop wallet as the wallet is downloaded directly to your device. You normally access your cryptocurrency wallet by downloading a mobile app, which also allows you to spend your coins in a physical store by scanning a QR code.

Web or Online Wallet

A web wallet offers the greatest level of convenience when sending coins to another person, however, they are also the least secure. This is because the wallet provider usually has full control over it.

An example of this would be storing coins in a cryptocurrency exchange. The exchange will store your coins on their central server, which means that if it hacked, the criminal could have access to all of your funds. It is best advised to only keep a small number of coins in a web crypto wallets.

Paper Wallet

Paper wallets are one of the most underrated crypto wallets available. All you need to do is to print your private and public keys onto a piece of paper - and that's it, your funds are secure!

This is because the keys are not connected to any servers, meaning the only way somebody could access them is if they had the physical paper! When you need to transfer funds, you simply enter the keys into a software or web wallet, or even easier, just scan the QR code that you printed!

Hardware Wallet

In terms of security, it doesn't get any better than a hardware wallet. This is a physical device that has the sole purpose of storing your private and public crypto keys within the hardware.

The device is never connected to the internet unless you need to transfer funds. However, you enter your private pin directly on to the device, making it virtually impossible for a hacker to access your keys.

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