There are several types of cryptocurrency wallets that are used to store digital currency in different ways. A digital wallet is an important part of the cryptocurrency. The first thing that arise in mind is security of digital wallets.
Today, various types of digital wallet also exist. Each cryptocurrency uses a digital wallet for storing and allowing access to currency. A digital wallet also works as common wallet and used to store currency.
Types of Cryptocurrency Wallets: Cryptocurrency wallet can be divided into three main categories. It also includes the software wallet, hardware wallet and paper wallet. Anyone can use one of it to store his or her cryptocurrency.
Software Cryptocurrency wallet: Software wallets are very common among users. It is also quite easy to maintain a software wallet. Software wallet is sub divided into three types of wallets. It also includes desktop software wallet, online software wallet and mobile software wallet. All these cryptocurrency software wallets are used to store currency.
Desktop software Cryptocurrency wallets
Desktop software wallets are download on laptop or personal computer. It also offers the higher level of security as the accessibility of such wallets is limit. Desktop software wallets can access only on the computer where these wallets are install. But if someone gets his or her PC hacked or virus infected, user will lose all the money.
Online software Cryptocurrency wallets
Such range of software crypto wallets run on the Cloud. A good benefit of online wallet is that it can easily be accesses from any geographical location from any device. Such type of wallets stores the security keys online. So, these security keys can be theft or hacked.
Mobile software Cryptocurrency wallets
Mobile software wallets run smartphones through an application. These can be use easily anywhere. Such wallets are comparatively smaller and simpler than other software wallets.
Hardware digital Cryptocurrency wallets
Hardware digital wallets store the keys on the hardware device such as USB. All the keys of digital wallets are store offline. Hardware wallets are more secure because their keys are not connect to the internet. Hardware digital wallets can use different currencies.
Difference between hardware and Software digital Cryptocurrency wallets
Hardware wallets are more secure and safe as compare to the software digital wallets. Usually, software wallets cannot handle different currencies, but a hardware digital wallet can handle different digital currencies. Making transactions with hardware digital wallet is comparatively easy and simple. Security is the best benefit of hardware digital wallet. One can make his or her currency more secure by storing it in a hardware digital wallet.
Paper digital Cryptocurrency wallets
Paper digital wallets are more user friendly. These wallets ensure the high level of security. Paper wallet term means the hard copy of user’s public and private keys. Paper digital wallets are printout of the both private and public keys.
Security of digital wallets is an important aspect. Different wallets offer different levels of security. Users should choose a digital wallet that is suitable according to the currency. Users should read about all types of Cryptocurrency Wallets before deciding to choose one to store currency.