A cryptocurrency wallet is a small piece of software that allows you to store digital money. It is where you can safely keep your private and public keys useful for sending and receiving cryptocurrencies. There is no cryptocurrency without wallets. There are different types of crypto wallets available, and each one will come with pros and cons. However, after going through the pros and cons of each wallet, you can choose the one that suits your needs. Some e-wallets are already in use by many on mobiles. Also, here is a list of best crypto exchanges if you want to change some money to crypto or vice versa.
Here are a few types of crypto wallets at bitcoin revolution that you can use!
Online wallet
It is not a secure cryptocurrency wallet. However, the best part of using this type of wallet is that you can make micropayments with ease. It also makes it easy to take advantage of opportunities like crypto arbitrage. You can learn more in this guide to crypto arbitrage.
The online wallet is also known as a web wallet that gives you access to cryptocurrencies through the internet. You can store and carry out the transactions until you are connected to the cloud. Here, the online wallet provider would be keeping your private key on the server. Whenever you want to make a transaction, the online wallet provider would send a crypto code. Using this code, you can have quick access to the keys.
Pros
- Quick transactions
- Able to manage different types of cryptocurrencies in the wallet
- Use the wallet on the go and carry out active trading
Cons
- There is a lot of risk due to online scams and hackers
- There is no protection to the personal information of users
- Third-party would store your private key
Mobile wallet
It can be downloaded and used directly on the mobile. It is the most convenient way for the people to carry out transactions on the go. Many retail stores are accepting cryptocurrency as one of the payment modes. You can pay through the mobile wallet. It is the same as the online wallet but is available in the app form. You must make sure that the mobile wallet you are using has private keys, is easier to use, has a backup feature, is highly secure, and is compatible with the use of the different operating systems.
Pros
- Safer compared to the online wallet
- Easy to use on the move
- Comes with additional feature such as QR code scanning
Cons
- Lose the crypto assets when the mobile is damaged or lost
- High chances of getting prone to mobile virus
Desktop wallet
It is another best wallet that is safer compared to online and mobile wallets. You can download the wallet onto your desktop and start using it. The desktop wallets are highly safe. If the wallet is not connected to the internet, then it turns as a cold wallet.
Pros
- Convenient for people who would like to carry out crypto trades using their systems
- Private keys are not stored on any of the third-party servers
- Remain extra safe when the computer is not connected to the internet
Cons
- Could not use the crypto assets on the move
- When it is connected to the internet, it becomes less secure
- If you do not back up the cryptocurrencies, then you with lose when you format the system, or it gets crashed due to virus
Hardware wallet
It is the safest of all crypto wallets available in the market. It stores the private keys on the USB drive. When you connect this wallet to the system or mobile, you can carry out the transactions. It stays offline and, therefore, is considered a cold wallet.
Pros
- Safer compared to other wallets
- Store huge amount of cryptocurrencies that you do not use regularly
Cons
- Expensive wallet
- Not for the beginners and tech-savvy
Paper wallets
It is the cold wallet that has both the private and public key printed on a paper. You can transfer the funds to the wallet’s address and withdraw the amount by scanning the QR code or using the private key on this wallet.
Pros
- Free from hackers
- Do not have to store on the system or mobiles
- It is not stored on any third-party server
Cons
- Not so user-friendly
- Tough to use to carry out regular transactions
Different types of crypto wallets are available. One must learn about the strengths and weaknesses of each wallet and use the right one accordingly.
Read More: Bitcoin Trading- What Everyone Must Know About It?
