KINDS OF CRYPTOCURRENCY WALLETS.
When investing in cryptocurrency it is of much significance that you store your coin in wallets. However, deciding in which wallet to use is now the hard but to crack. Actually, this is because there are a variety of this types. Choosing which wallet to go with requires a keen look at all of them with the pros and cons of each. Here I will try to break down to you this types of wallets. Hopefully, it will help you decide one to go with.
- Online wallet. This one is also referred to as the web wallet. You will access it via the web browser on either your mobile phone or desktop. So, you require internet connection in your locality. Its advantages include the following:
Instant access to your wallet hence transactions are faster.
With some, you will have the ability to operate and store different currencies on that same wallet. You can also perform different transactions.
Your currency can be intergrated ed into an exchange with an online wallet.
You also do not need to install any software on your laptop hence it saves your computer’s space.
This wallet also has its disadvantages which include the following.
You will exposing yourself to the risk of being hacked and your coins stolen or susceptible malware and phishing scams.
As an investor, you lack control of your wallet because it is online. It is in the hands of a third party who will always come with his risks.
- Mobile wallets. As the name suggests, this ones can be accessed and operated on the mobile devices. You can operate your wallet on the go. Its advantages include the following.
Similar with the online wallets us Will be able to use TOR network which will help you increase security and anonymity.
Additional features such as QR Code scanning which are not available with other wallets are enhanced when using the mobile wallets.
Its disadvantage is that if your phone gets maliciously compromised all your savings get wiped away because mobile phones are not all that secure.
- Desktop wallets. The desktop wallets are considered one of the most secure cryptocurrency wallets though it also depends on how committed you are in keeping updated with the latest online security measures.
Among its advantages is that it is ideal wallet to use if you are looking for a cold wallet to store large amount of currency somewhere.
Desktop wallets are less vulnerable to viruses and malware especially if the machine has not been connected to an internet connection. You are also not depending on a third party for your password to be stored which also reduces chances of being hacked into and eventually loosing your currency.
Its disadvantage is that if your computer experiences a breakdown and you had not backed up your data externally, and you fail fix the problem you might end up loosing all your investment.
- Paper wallet. With wallets, you don’t store information on computers which means one must break into your premises in order to get access to all information needed to steel your money. They are virtually hacker proof. Otherwise, you will need to put in more effort if you want to move your currency around.