Now that we know the terms used by crypto wallets users let’s dive to know more about the kinds of crypto wallet and their unique features. In case you missed our last post on terms used by crypto wallet users, here is the link.
If you are new to Crypto wallets and interested to know What are crypto wallets and How crypto wallets work, please check our last post here.
Types of Crypto Wallets
Crypto wallets are mainly categorized based on their storage, combination of public and private keys, accessibility, etc. Here are different types of wallets that are quite popular among crypto enthusiasts –
A paper wallet is a cold wallet used to store digital currencies. The process of accessing a paper wallet involves the printing of public and private keys on a sheet of paper. The keys are generated via open source wallet generator available like – BitAddress.org, WalletGenerator.net and BitcoinpaperWallet.com. As experts recommend users generating a paper wallet should unplug their internet and wipe the history after the keys are created to assure security and avoid hacking of your wallet.
Any firm dealing with cryptos or digital currencies would launch his Desktop wallet for the convenience of its customers. Desktop Wallet are installable’s that could be installed on your laptop/desktop. As a desktop/laptop is mostly connected to the internet, you would need extra layers of security measures to protect your wallet like antivirus, firewalls, etc. Some of the leading desktop wallets available in the market are – Electrum and Bitcoin Core.
With a need to access from any time and anywhere, Mobile wallets have gained popularity in the crypto world. The working is similar to the desktop wallet and provides hot storage both for Android and iOS versions. However, before installing a crypto wallet on your phone make get a review on features like Private keys, ease of use, security, back up and most importantly the development community if it’s active or not. Some of the mobile wallet available are – MyCelium, Edge
The least secured wallet that offers hot storage is Online Wallet as they are always connected to the internet. The private keys are held in your browser and hence prone to DDOS attacks. They could be categorized further to hosted online wallets like Cex.io and coinbase or non-hosted online wallets like Metamask and myetherwallet.
The most secure of the lot that offers cold storage and is a bit technical in terms of usage. As the name suggests, they are the hardware explicitly built to handle public and private keys. You can imagine as a USB drive as your wallet that would go online only when you connect it to a laptop for a transaction, hence secured and in control. Some of the examples of hardware wallets are Ledger Nano S and Trezor.
Did you explore any other crypto wallet? We would love to know about it. Please share your story with us on Twitter [@getnuo].