Understanding the Different Types of Crypto Wallets

When you own cryptocurrency, you need to store it in a crypto wallet. Those who are new to cryptocurrency may find the choice of wallet to be overwhelming. It doesn’t help that you need a secure wallet to protect your crypto; otherwise, a hacker can get it. When exploring the various crypto wallets, keep in mind that each type has its own purpose, meaning each situation has its own ideal wallet.

A Desktop Wallet

A desktop wallet is just what it sounds like. This is software for your desktop that you install and that will hold your crypto. Almost all cryptos have their own desktop wallets or suggest one to use. The downside is that your computer connects to the internet, meaning that you must have strong security measures in place on your device. This must include a strong firewall, anti-malware, and anti-virus software.

A Mobile Wallet

Mobile wallets appeal to those who want to have easy access to the cryptocurrency and regularly use it on the go. They involve installing an application onto your mobile device. As with desktops, most major cryptos have their own mobile wallets or recommend one. A mobile wallet has one of the same disadvantages as one for your desktop: it connects to the internet. You also need to do research on the wallet itself to ensure there are no risks from the development process.

A Web Wallet

Web wallets are also always connected with the internet, which presents a security risk. They are also highly convenient since you can access your wallet from any device as long as it has internet. They may or may not be hosted, but you should always opt for a non-hosted wallet to increase your control of funds.

A Hardware Wallet

Hardware wallets are devices that were specifically created to hold your public addresses and private keys. This is a device that looks like a USB and has side buttons plus an OLED screen. It works with its own native desktop app for a cryptocurrency. These have a higher upfront cost than other wallets, but they are significantly safer. They also now regularly offer multi-currency support. This is the most secure type of crypto wallet and is ideal for HODLing crypto.

A Paper Wallet

A paper wallet requires an additional amount of caution and some extra technical knowledge. They are, however, incredibly secure since your private keys remain offline, ensuring they are fully safe from hackers. With a paper wallet, you print out the public addresses and private keys. You cannot find a paper wallet for all crypto wallets, and they can be inconvenient if you want easy access to your crypto.

Combine Wallets for the Best Results

Those who have experience with cryptocurrency will tell you that you do not have to stick to just one wallet. Ideally, you should keep a small amount of crypto in your mobile, desktop, or web wallet for convenient access. Then, store most of your crypto in a secure hardware wallet for added security. This tactic will vary slightly by person.