The different types of crypto wallets

There are many types purses to hold cryptocurrencies. In this article, we try to explain the different types as simply as possible to help you find your ideal portfolio.

Understand the crypto wallets

Before you know what the different types of cryptocurrency wallets are, you should check out the: crypto wallets

First of all, keep in mind that holding cryptocurrencies is different from holding traditional currencies. Cryptocurrency is not available in physical form and is instead considered a group of codes. On the other hand, cryptocurrency is stored on the blockchain with a specific address. Users can use the public key to help other users send cryptocurrency. At the same time, you can use a private key to unlock crypto assets in the wallet. Some even go so far as to engrave their keys on metal.

You can think of a cryptocurrency wallet as a traditional wallet needed to keep your money safe. However, different types of crypto wallets offer enhanced security measures compared to traditional wallets. In fact, cryptocurrency wallets never store real cryptocurrency. Rather, they provide the storage of the keys of the cryptographic assets. The crypto wallet may contain the information to link people to funds to keep them safe. We will first talk about what a . is called hot wallet

The purses on the computer

The wallet desktop are those that can be installed on a desktop or laptop computer. Many desktop wallets have additional features such as node software and even exchange integrations.

Perhaps the biggest drawback of desktop wallets is the fact that they can be exploited if the computer itself is hacked. This means that the wallet can be compromised if the user saves their password on the same device.

The web wallets

Web wallets are one of the main types of cryptocurrency wallets in the hot wallet category. You can access web wallets through a web browser without having to download any specialized software or applications. With browser-based access, web wallets allow you to access crypto assets from anywhere with your password, device and web browser. In the case of web wallets, the website holds the keys to your crypto assets. Alternatives like wallets multi sign offer users some degree of control over their cryptocurrency wallets.

custodial wallet non custodial wallet
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The pursesfor telephones

Phone wallets work almost the same as desktop wallets. The only difference is that they work on other mobile devices and can process fast payments in physical stores using Near Field Communication (NFC). A scan of the QR code can also make the transaction faster than usual. These wallets are compatible with phone operating systems such as iOS or Android.

Now let’s look at the cold wallets That are the purses that are physically present.

The purses physical

The pursesphysical are considered the most secure type among the many existing Bitcoin wallets. This type of wallet stores the private keys on a physical device that no one can access on the internet. Hardware wallets look like flash drives and must be connected to a computer before you can access cryptocurrency.

For those who want to know the full history of bitcoin, hardware wallets were the biggest innovation that made bitcoin completely immune to virus attacks. This resulted in a low theft rate of the part. While these wallets are safe, most wallets like Ledger and Trezor also cost between $100 and $200. Find our article on Ledger’s latest release.

It is very clear that people with a larger amount of crypto assets are better off using cold wallets. However, a combination of cold and warm wallets can have better benefits for cryptocurrency users.

It is important to identify the different types purses their effects, their uses and their prices in order to purses that will accompany you in your crypto adventure. However, it’s worth remembering that diversification also works forpursesand allows you to not depend on a single storage source.

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Alexis Patin

Passionate about geopolitics, economics, cryptocurrency, Eurasia and travel! (as far east as possible), crypto trader for 4 years.

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