Cryptocurrency Wallets Types With Their Pros And Cons
A cryptocurrency wallet is the software package that stores your public and private keys and interacts with numerous block chains to enable facility for the user to send and receive digital currency and monitor their funds.
If you want to use bitcoin or any other cryptocurrency, you will need to have an original wallet, It’s like having the physical wallet but in the digitalized way that will be available online. There are different types of cryptocurrency wallets.
Desktop Wallet –
This wallet is downloaded and installed on your pc and laptop. They are accessible from the single computer in which they are downloaded.
Pros – It is very secure.
Cons – You can only use on your desktop.
It can be accessible by hacker just like fishing attempt.
Online Wallet –
Online wallet runs on the Internet cloud and is accessible from any computing device in any location while they are more convenient to access.Online wallets store your private keys online. You can use it anywhere on different devices.
Pros – Easy to use
Cons – Security Issues, People can use your password by phone.
Mobile Wallet –
You can download the application on mobile via Play Store or App store. Mobile wallet runs on the application and is useful because they can run anywhere including the retail store.
A mobile wallet is much smaller and simpler than desktop.
If you lose your phone, you can get the backup and don’t lose your crypto funds. It never keeps your funds on mobile it is misconception what you have in mobile is actually a key. Mobile actually store your private key that will provide a visibility of your block chains.
Hardware Wallet –
Their type of wallets is quite different from the desktop/Online/mobile wallet because they store a user’s private key on hardware device like a USB. We all know about the USB. It’s very simple. Although hardware wallet makes transactions online while they are stored offline which provide increased security. If you want to store your cryptocurrency safely then it is recommended to everyone that you keep it on cold storage device “Hardware Wallet”.
Pros – High Level Of Security
Cons – You must have the device available all the time physically for transactions.
Paper Wallet –
They are very easy to use and provide a very level of security.The term ‘Paper Wallet ‘ Can Simply refer to physical copy (printout of your public and private key ). It can also refer to piece of software that is used to securely generate a pair of keys which are then printed.
Choosing a cryptocurrency wallet depends on various factors.
That includes the following points.
1.For which purpose you want to use wallet either for everyday purchase or just buying and holding the digital currency.
2.Are you want to deal with multiple types of currency or using just one single currency?
3.Do you want to access your digital currency from anywhere or only from home?
So decide your self which wallet meets your all the requirements than choose wallet after checking their pros and cons.
But for any of the wallets you choose, some points you have to take care of your wallet safety that includes –
1. Always backup your wallet whatever it is either mobile/desktop/hardware.
2. Keep your wallet software updated all the time so that you have latest security enhancement.
3. For Extra Security, When you are doing any online stuff then make sure it is Google authenticated.