In recent years blockchain technology has become contagious. Its growth attracts more and more investors to fall for it. With all this growth of cryptocurrencies, merchants longed for a safe and reliable wallet to store all the digital currencies.
Basically, a Multi cryptocurrency wallet is a software that is used to interact with the blockchain network. Simply put, it is a wallet that stores all your digital assets.
In fact, you cannot touch and feel the cryptocurrencies, and without crypto wallets, the whole idea of crypto coins dies!
Furthermore, there are several types of cryptocurrency wallets available in the market. Here are the five most popular cryptocurrency wallets available for your use.
Online wallets are one that runs on the cloud, and it allows access to your crypto coins through the internet. The online wallet is also known as a web wallet.
These wallets are considered as one of the least secure types of a cryptocurrency wallet, and hence it needs an extra layer of security.
Advantages of online wallet
- It enables the fastest way to complete the transaction.
- It is very convenient to use on the go and for active trading.
Disadvantage of online wallet
- High risk of online security such as scams, hacks, malware, insider hacking, etc..
- Your coin information is stored by the third-party, not you.
Mobile wallets are nothing but your phone applications. They are very easy-to-use, and hence you can use them even in the physical stores.
Simply install a crypto wallet app on your phone and open an account. Mobile wallets are much safer than cloud wallets.
Advantages of mobile wallets
- More convenient and easy to use, you can accept and send payments on the go.
- Additional features like QR code scanning is an added advantage.
Disadvantage of mobile wallet
- The risk associated with mobile wallets are physical breaks or any security breaches.
- High risk of affecting virus and malware in your mobile
Desktop wallets are another choice of choosing over online wallets when security is concerned.
All you need is to download your wallet application and install it on your desktop or laptops. If the desktop has never been connected to the internet, it becomes a cold storage wallet.
Advantages of desktop wallet
- Easy and convenient for those who trade cryptos from their desktops
- All your private keys are not stored on the third-party server
Disadvantages of desktop wallet
- Backup of your computer is very important if not done; then, there is a chance of losing your cryptos.
- It is difficult to use your crypto assets on the go.
Hardware wallets are feasibly considered as one of the safest crypto wallets among all. They can store all your private keys on a device.
They are considered a great way to store large amounts of cryptocurrencies, and they need more control.
Advantages of a hardware wallet
- You can use this wallet if you have the plan to hold your crypto for a longer time
- They allow you to set up PIN code to protect your device and recover them as well if in case your wallet is lost.
Disadvantage of hardware wallets
- As they are the safest cryptocurrency wallet, so the expense of the wallet is high.
- Inconvenient for some beginners to use, but absolutely useful for large crypto amounts.
Paper wallets are also the safest option to store all the digital currencies. They are just a piece of paper on which your crypto address, public and private keys are physically printed.
This wallet is highly resistant to online threats and considered an alternative to cold storage.
Advantages of paper wallets
- All your private keys are not stored on the third-party server.
- Once the code is used for any transaction, it cannot be reused later, and hence it is considered a hacker-proof wallet.
Disadvantage of paper wallets
- One has to put more effort to move cryptocurrencies.
- Need more technical understating, and hence it is hard to use for the day-to-day transaction.
As said earlier, cryptocurrency wallets are an integral part of using cryptocurrencies. It is very important to choose a secure cryptocurrency wallet, so it’s better to rely on any cryptocurrency wallet development company. Try to understand how they work before making any transaction!