People who are only started to learn about cryptocurrencies may find it hard to understand the importance of crypto wallets. There is no need to worry, as it is quite easy to learn more about the different types of crypto wallets.
A person is used to keep his or her money in a regular leather wallet. As a reminder, cryptocurrency is not a regular kind of currency, and this also applies to wallets. There are special wallets that are used to store the crypto money.
Let’s have at the crypto wallet; it is a software program that allows the crypto owner to store his or her crypto safely. Moreover, the owner has an option to check the balance for different currencies as well as to send cryptocurrencies to other wallets.
It is important to keep in mind that the major difference between the e-wallet and a crypto wallet is the security. Crypto wallets are harder to penetrate in comparison with e-wallet. However, there is still a chance to gain access to the crypto wallet.
The crypto wallet comes with an address. It is similar to a bank account number. For example, if the owner of a crypto wallet wants to send the crypto, all this person has to do is to give a crypto wallet address.
- Read WiBestBroker’s comprehensive review on Exness.
Moreover, crypto wallets do not show the identity of the owner. Nevertheless, it is possible to check the amount available on the account.
The address consists of a combination of numbers and letters in both caps and lower case.
Potential crypto owners should be aware of the fact that they will also receive a private key number aside from a public key. The purpose of a private key number is equivalent to a password of the bank account.
Different types of crypto wallets
Crypto owners can choose from different types of crypto wallets. It depends on his or her priorities.
The first one is a desktop wallet. It is possible to download this software to a specific laptop or computer. It means that it is impossible to access the wallet from other devices. As a result, this wallet is convenient and secure. However, a person can lose the laptop, and in this case, it would become impossible to gain access to the account.
The second option is a mobile wallet. This wallet is similar to the one used on a desktop computer. Nevertheless, a person can spend the crypto money by using the QR code on the device.
Another option is the online wallet also called web wallet. It is regarded as the most convenient wallet available to the customers. Crypto owners can access the account from any device that has an online connection. This wallet has one drawback coins stored on an exchange platform. This is a serious problem when it comes to safety.
Paper and hardware wallets
The other two options include paper and hardware wallets. The paper wallets are safer in comparison with other wallets. A person will print the public and private keys on a paper. As a result, it will be impossible to gain access to this information. A customer does not have to worry about security, as no one will have the opportunity to gain assess by hacking his computer. The information is written on a piece of paper.
Hardware wallets are different from other types of wallets. They are quite secure. A crypto owner has to enter the private pin directly on to the device. Thus, hackers won’t be able to access the wallet without the physical wallet itself.
It is worth mentioning that some wallets can’t handle more than one type of cryptocurrency at the same time. Crypto owners with more than one cryptocurrency should buy a wallet that is suitable for multiple currencies.
People should remember that the blockchain protocol is not anonymous; it is pseudonymous. Even though the wallet does not contain the name of the owner, other information is still available.
This article will help to choose the best wallet. However, a customer should take into consideration different aspects.