Cryptocurrency is taking the economic world by storm. More people are investing in Cryptocurrency today than ever before. Cryptocurrency is becoming easy to use for online trade purposes. The changing Coin Culture has revolutionized the whole concept of online trading. However, to use crypto for trade, you need to have a crypto wallet.
Here we present you with different types of crypto wallets and guide you on how to choose one that meets your needs.
The Crypto wallets are broadly categorized into two categories:
A cold wallet is an offline wallet that you can use to keep your cryptocurrency safe. It does not have a direct connection to the internet, therefore it is more secure. A cold wallet needs to be physically stolen to get access to your cryptocurrency. However, you can not send or receive cryptocurrency from a cold wallet while traveling.
The cold wallets are of two types.
A hardware wallet is a physical wallet. It is like a flash drive that keeps your private key safe. You can connect your hardware wallet to your computer through a USB port and make transactions. It is expensive but very secure.
A paper wallet is literally a piece of paper that holds the information to get access to your cryptocurrency. Paper wallets may be secure as they leave no digital fingerprint, but they are insecure in the sense that if you lose paper, you will lose access to all your cryptocurrency.
A hot wallet is an online wallet that allows crypto transactions through secure channels. Although hot wallets provide greater flexibility but due to internet connection, they are more vulnerable to hacking and theft.
Hot wallets are further divided into different software wallets.
A software wallet is a software application where you can create an account using secure private and public keys. A private key is your password that should only be accessible to you. A public key is the wallet address that will help you make transactions.
Software wallets are of different types
It is software installed on your PC and can be accessed only from the original PC it was installed in. However, you must make sure that your computer is free of viruses and malware. Export your private key elsewhere, so that you can have access to your wallet in case your computer crashes.
It can be accessed from your mobile phone.it provides greater flexibility in transactions as you can scan QR codes to make transactions.
It is an online wallet that you can access through your browser anywhere and anytime. However, since it is indirectly accessible to third parties, it may be prone to hacking and viruses.
You can choose any wallet that meets your requirements. However, to keep large volumes of cryptocurrency, it is advised to keep a combination of hot and cold wallets. You can keep a portion of your assets secure while using the other portion for business and transactions.