The Different Types of Cryptocurrency Wallets

Just when you think you know something about cryptocurrency, you learn something new that puts you back in your place. People can understand what a cryptocurrency wallet is, and how it works and its difference from a regular wallet, but they can get confused when it comes to the various kind of wallets that are available.

Have no fear though, that’s why Money Trade Coin is here - to help you!

In our last post, we quickly skimmed through the various types of wallets, without really diving into the pros and cons of each. Today, we’ll go through them in detail, so you better informed when you decide to pick up a cryptocurrency wallet.

Broadly, there are two kinds of wallets: hot wallets and cold wallets. The former has an online presence and can be accessed by hackers, though they are generally very secure. The latter are physical wallets and are stored offline, where it is inaccessible to hackers.

Getting more specific, there are 5 different kinds of wallets. We’ll look at the pros and cons of each.

Online Wallet
Pros:
● Good for small values of cryptocurrency
● The quickest transactions
● Some online wallets have features that support exchange and multiple cryptocurrencies

Cons:

● Your wallet information is stored with third-party services
● Comparatively less secure and accessible to hackers

Desktop Wallet
Pros:
● More secure than a web wallet
● Can be used as a cold wallet
● No information is stored with a third-party

Cons:
● If you don’t backup your wallet, a computer crash could result in total loss
● Viruses and malware can potentially be a threat to your savings
● If you do connect to the internet, it is accessible to hackers

Hardware Wallet
Pros:
● Extremely secure, as it is stored offline
● Can also be connected to the internet, if required

Cons:
● Can be difficult to use, especially for beginners
● Difficult to get a hold of

Mobile Wallet
Pros:
● The most practical wallet can be used in stores
● Ideal for small transactions
● Often has other features like QR code scanning

Cons:

● Phones are extremely vulnerable devices, prone to attacks by hackers, viruses, keyloggers, and malware

Paper Wallet
Pros:
● Extremely secure, as the private keys are stored with you
● Only you have access to the keys

Cons:
● The keys must be stored safely at all times
● Suited for the technically inclined
● Generally more difficult to use
● Can be impractical

Which Kind of Wallet is Suited for You?

If security is your biggest concern, then a hardware wallet is the way to go. If you plan to use your cryptocurrency frequently, to purchase at retail stores, a mobile wallet is more suitable. Online wallets are the simplest to use, requiring little technical know-how, and are perfect for regular minor transactions. In some sense, the paper wallet is the riskiest to use, as you will be in possession of the private key to the wallet. If you misplace the key, you’re in trouble.

Think about of what you want out of the wallet and how you plan to use it. You can then pick a wallet that suits your requirements.

#MoneyTradeCoin #Newage #Cryptocurrency #MTCOIN