These wallets are software programs that stores the public and private keys (similar to bank account numbers) and can be used to track ownership, send and receive digital currency, and monitor balances. Cryptocurrency wallets don’t actually store currency, they simply record transactions stored on the blockchain.
These wallets can be accessed from multiple locations via web browsers. They are convenient, but as a third party runs them they are vulnerable to hacking.
These are installed on your smartphone. They allow QR-code scanning to send and receive funds. Some apps allow payments at retail stores etc.
These are computer programs downloaded onto your P.C. They are safer than online/web based wallets. An offline computer is safest. As long as you have a backup of your wallet, even if your computer dies funds are safe.
A hardware wallet is termed a ‘cold wallet’ as it is a wallet that isn’t connected to the Internet. It is by far the safest wallet. A ‘hot wallet’ is connected to the Internet (i.e. an online/web wallet). Hardware/cold wallets are often used for more long-term holdings as they are less user friendly to use. Hardware wallets look like a small USB drive and can be accessed desktop apps.
This type of wallet is printed on a piece of paper. It was the most secure wallet prior to hardware wallets existing. A paper wallet is a physical copy of your generated public and private keys. You can send funds by transferring cryptocurrency to a wallets public address (the deposit address which it doesn’t matter if people see), and you can withdraw/send cryptocurrency by entering your private keys (the withdraw address which you obviously want to keep private so nobody steals your cryptocurrency!).
© 2021 Crypto Educate | Terms & conditions