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Different Types of Cryptocurrency Wallets

by Bitforx

Posted onJan 21, 2019 by Bitforx

Did you know that there is a variety of cryptocurrency wallets on the market? Chances are, that if you are not aware of different crypto wallets out there, you won't be able to choose the best option for your needs. Use this simple guide to the cryptocurrency wallets to learn a bit more detail around the subject. 

Basics: What is a cryptocurrency wallet? 

Let's start with the plain description of crypto wallets. It's a regular digital wallet that combines your private key and public access. It gives the users a possibility to store, send and receive digital currency like Bitcoin, Litecoin and other Altcoins. 

As we already mentioned, there are different types of cryptocurrency wallets. And no matter the reason you want to acquire it, the coin you have, and your desires with it, you need a digital wallet to use your cryptocurrency. 

Five types of cryptocurrency wallets that you need to know about

Desktop cryptocurrency wallets 

The desktop wallet is a highly secure crypto wallet. It's called a desktop wallet because you have to download it on your PC or laptop. A single computer (your computer) can limit its accessibility, thus making it a secure wallet. But be aware not to catch any viruses or malicious hackers. 

Online cryptocurrency wallets

Probably the most popular one is this kind. It runs on the cloud-based system and doesn't have limited accessibility. You can open your online wallet from any device, making it a comfortable choice. 

Mobile cryptocurrency wallets

The way we use our smartphones nowadays, determined that cryptocurrency wallets would adopt this environment too. Mobile wallets run as apps on your phone. You can download them from App Store, Play Store, and other platforms. 

Hardware wallet

Wallets differ from the way they store private keys. Hardware wallets conduct transactions online, but they store the keys offline. Storing the keys offline delivers the utmost security (like with the desktop wallet). You can use hardware wallets for different cryptocurrencies. 

To make a transaction, you have to plug the device to an internet-enabled device, enter your pin, then send the digital currency and confirm the transaction. This process happens while you keep your assets offline.

Paper wallet

A paper wallet is another highly secure crypto wallet. This wallet got especially popular around 2011 and 2016. Paper wallets guarantee maximum safety, offline and cold storage of your digital currency. 

Using a paper wallet means that you will have to print out  public and private keys on a piece of paper. Printing them on paper means printing them in a QR code form to scan them later for every transaction. You'll be happy to know that you will be in 100% control of your assets, your private and public key and safe from malicious hacker attacks. 

Nothing's tricky and complicated. It is a simple guide for a simple concept of cryptocurrency wallets. It's up to you to decide which one suits you the best. Once you experience what market has to offer to you, you'll be sure to engage in the crypto economy. 

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