In this article of QuantVan Academy, we have covered different types of cryptocurrency wallets available in the market and included their advantages and disadvantages.
The security of your crypto depends largely on the safety of the wallet you are storing them in.
A cryptocurrency wallet is a software program which stores private and public keys.
and also interacts with various blockchain in order to enable users to send and receive digital currency and have control on their balance.
Different types of wallets used for different purposes and they differ according to the intended use, mobility security and cost.
Here, we have covered different types of cryptocurrency wallets available in the market and included their advantages and disadvantages.
These are website-based online wallets that can access via web browsers. You can use them anytime and anywhere as long as long as you are connecting to the internet and carry out transaction quickly as possible. They mostly recommended for small amounts of crypto-funds, but the type of disadvantage they bear is that hackers can access to your wallet and funds and you never fully protected from risks of computer viruses when using internet browsers. Examples of web wallets are Btc.com, Coin.space, blockchain.info and MyEtherWallet.
Before hardware existed, these good old, non-digital wallets were most secured cryptocurrency wallets. They are usually use for long-term storage old cryptocurrencies and are not prone to internet dangers. However, they are exposed to risks such as being burned, wet, stolen and torn apart; they are not readily accessible for things like everyday transactions and paper is likely to deteriorate over time. Examples of paper wallets include walletgenerator.net and bitaddress.org.
Desktop wallets invented to be installed and run on desktop computers and laptops. They are popular due to the features they can offer on powerful desktop platforms like windows, MacOS and Linux. also give you convenience in trading cryptocurrencies; they enable you to monitor your private keys and when you go offline, your computer will not be infected with any malicious malware. Examples of desktop wallets are bitcoin Core, Electrum, Armory and Msigna, Exodus and Atomic. The desktop wallet category also includes wallets like Bitcoin Core Wallet and Official Monero Wallet from the development teams of assets themselves.
These wallets enable you to send and receive crypto only by installing an Android or IOS app on your smartphones. They especially use for making in-person payments, such as merchants who accept crypto and they also provide you with full access to private keys and recovery keys. It is good to mention that Most mobile wallets also have a QR scanning feature. But since phones are prone to malware and keyloggers, nothing can save your crypto once it’s infected. Here are examples of mobile wallets: Exodus, Coinomi, Mycelium, GreenAddress, and Copay.
These wallets are the most secured wallets for storing one’s crypto wealth for the long term. Also it has many pincodes that use for the security issues.
There hardware devices store private and public keys of users via USB.
including a physical confirmation on the device itself for added security.
It is highly recommends to store large amounts of cryptocurrencies for investment purposes in hardware wallets.
However, hardware wallets are not available for free.