11 июня, 2020 
 233

What You Should Know About Cryptocurrency Wallets

Cryptocurrencies from digital know-how with dubious prospects have evolved, if not into the everyday part of every person’s life, then into a completely cost-effective financial instrument. And it has every chance of becoming the same standard of living as paper money. If we keep physical money in wallets and in bank accounts, the question arises — where to store digital ones?
Share this
What You Should Know About Cryptocurrency Wallets

For this, there are special cryptocurrency carriers — wallets with accounts on which money is stored. They are different: virtual and physical, online and offline. What is the difference between it and how to choose the best option for yourself? Let us first analyze their types and determine what is the peculiarity of each of them.

Main Kinds Of Crypto Wallets

Crypto-wallets can be divided into “cold” and “hot”. Cold wallets are offline. Access to them is possible only through a specific device, subject to the possession of keys. As they say in the crypto environment, “Not your keys, not your crypto”.

Hot wallets are online, access to them is much easier and more convenient, but this makes them more vulnerable to hacker attacks. Experts do not recommend making them the permanent and main carrier of all their funds, but such wallets are very convenient for exchanging and shopping.

Let's Look At Them

Hardware Wallets

This is a physical device that connects to the Internet through the computer’s USB port. Double protection makes this wallet one of the most reliable. Here you can find examples of the technology market offers for hardware cryptocurrency wallets.

Desktop Wallets

This is an application that installs on a computer. Such wallets are considered more reliable than online. Some of them even support the possibility of mining, however, for this you need enough free space in the computer's memory. There are also versions for smartphones.

E-Wallets

Это кошельки, которые открываются на сайтах-обменниках, криптовалютных биржах и тому подобных площадках. Все их данные хранятся на сервере и это делает их наименее защищенным вариантом из возможных. Ваши средства могут попасть в руки хакеров или мошенников. Именно такая хакерская атака в свое время вызвала знаменитый раскол Ethereum.

Paper Wallets

Yes, there is one, the paper one. It is just a physical document with your keys. This is a budget option for a hardware wallet — and despite all its primitiveness, it is still better protected than electronic.

There are wallets tied to one specific cryptocurrency (e.g., Bitcoin or Ethereum). They will suit you if you store funds in these currencies, as transactions with them are supported everywhere.

To summarize: if you plan on long-term storage of money in cryptocurrency, it is better to choose either a desktop wallet or a physical medium . It is better to use an electronic wallet as a temporary option for trading and purchases, in the extreme case - as a storage until the time you have a better protected one.

Share this