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What Are The Different Types Of Wallet To Store Your Bitcoin? – If you are starting as a new Crypto adventurer, the one quest that you need to complete first is to look for a Crypto wallet to store all your Crypto assets safely. Well, completing this quest is not hard at all. The hard part is selecting the right type of Crypto wallet for your needs.
The market is filled with a plethora of Crypto wallet applications and software. Each claims to be the best in what they offer. However, it is up to you to decide which works best for you.
What Is A Crypto Wallet?
You must be wondering when Cryptocurrencies like Bitcoin do not have any physical form, why do we need a wallet. Bitcoin indeed lacks the physical form of government-issued currencies, but they require a safe wallet by all means.
A Cryptocurrency wallet is an application where the users can send, receive and hold Cryptocurrencies securely. The best way to understand a Crypto wallet is to consider it to be a bank account.
There are different types of Cryptocurrency wallets. Each wallet serves a different purpose and security levels. You must choose one after contemplating your needs.
However, if you do not want to use a different wallet for storing Crypto assets and a different platform for trading and are looking for a wallet that assists you with both, the bitcoin prime system might help you out.
Types Of Cryptocurrency Wallet
If you want to enter the Crypto trading business, it is important to have a Crypto wallet to store all your Crypto assets. Now that you know what a Crypto wallet is and how it works, you might be wondering what wallet options are available for you in the market.
There are five different types of wallets, but it is the hot wallet and cold wallet that you must keep in mind. That being said, let’s explore the different types of Crypto wallets.
1. Mobile Wallets
Mobile wallet is one of the simplest and widely used wallets worldwide. Mobile wallets for Bitcoins and Altcoins are the most used wallets. You will find that for the popular Cryptocurrencies, both iOS and Android have launched hundreds of wallets.
However, before you trust any mobile wallet, you must do your due diligence based on the following factors.
- Ease of use.
- Private keys.
- Development community.
- Backups and security.
2. Desktop Wallet
Desktops wallets are software applications for the desktop. They are directly installed in the computer system. Desktop wallets are feature-rich compared to mobile wallets.
Although desktop wallets offer a feature advantage over other wallets, it is an electronic device that often connects with the internet. Therefore, to ensure your data’s security, you must follow basic security measures like antivirus or a strong firewall.
3. Paper Wallet
During the early days of Crypto investment, the only option to secure your Crypto assets was paper wallets. This is the reason why only a selected few ventured into Crypto trading. However, thanks to technological advancement, we have more advanced versions of Crypto wallets.
Paper wallets are not for everyone. It requires a high level of caution from the user end. It is so because, in the typical paper wallet, you simply print everything on paper and keep it in the safe.
4. Hardware Wallet
Hardware wallets are the most secure wallet in the crypto trading industry. As the name suggests, hardware wallets are specifically designed to store Crypto assets. These are USB-like devices with an OLED screen and side buttons to navigate through the wallet’s interphase.
A hardware wallet can easily be connected to a computer system via USB and used to make trades.
5. Web Wallet
Web wallets are the hot wallets that are always connected to the internet. This allows the user to assess their Crypto asset from anywhere in the world. In this type of wallet, all your private and public keys are stored online in your browser.
A web wallet is the only wallet that most professions avoid using. This is because of its nature, where it is connected to the internet 24/7. This puts the wallets at constant risk of DDOS attacks.
What’s Your Wallet Type?
In this article, we have discussed the different types of Crypto wallets. We have tried to cover every aspect of the wallets and the benefits they bring to the table. By now, you must have an idea about the type of wallet that will suit your needs.
If you find this article helpful, share it with others so that they can also learn something. Ahhh, YES! Do not forget to tell us which wallet is your type.
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