Don’t get confused with the name crypto wallet. The way traditional currencies are kept in your wallets and purses, the cryptocurrencies are held in crypto wallets. Crypto Wallets are software that helps you to keep your cryptocurrencies safely.
To get access to the cryptocurrencies kept in the wallet, you need private keys provided to you by the crypto exchange.
Numerous types of crypto wallets are available in the market, and you need to know about all of them to get an idea about which wallet will work best for you. In this article we will try to cover all significant types of bitcoinup app so that you can choose the best among them:
Online crypto wallet
Although the online crypto wallets are not the safest and secure wallet, the best part about the wallet is that you can make even micropayments by using the online crypto-wallets. The name web wallet also knows the online crypto wallet. Thus, using an online wallet will help you to give access to the cryptocurrencies online. The only issue associated with online crypto wallets is that hackers and spammers are always in search of users and they try to get inside the wallet so that they can steal the bitcoin stored inside it. Whenever you are looking to complete a transaction, the wallet provider will send you a code so that you can get access to the keys.
Advantages of the online crypto wallet
- Quick and efficient transaction
- You can store different types of cryptocurrencies in the wallet
- You can also use the wallet by using private keys.
Disadvantages of using Online crypto wallet
- You may face different types of risk because of the prying eyes of hackers and spammers.
You can easily download and use the crypto wallet on your mobile phone. This is one of the most convenient ways to store and use cryptocurrencies. Today many stores and shops are using cryptocurrencies. Thus, if you are residing at a place where the retail stores can accept payment in cryptocurrencies, you can quickly pay them from a mobile wallet. The Mobile Wallet is almost similar to the online portfolio, but it is easily accessible from your mobile phone. When you are using a mobile wallet to store cryptocurrencies, keep in mind to keep your private keys safely. The best features of mobile wallets include easy to use, backup features, security, and proper compatibility.
Advantages of a mobile wallet
- Safer in comparison to the online wallet
- Easily accessible and usable
- Includes features like QR code scanning
Disadvantages of mobile wallet
- You may lose your cryptocurrencies if your mobile phone is broken or lost.
For all desktop holders, cryptocurrency wallets are also available for the desktop version. You can easily download the desktop version of the app and start using it conveniently. The desktop wallets are much safer as compared to the online wallet and mobile wallet as your desktop is available at your home or your address, and not many people can get access to your desktop. If your desktop wallet is not connected to the internet, it is called a cold wallet.
Advantages of using Desktop wallet
- Best for people who don’t like to carry their crypto wallets outside because of security issues.
- Private keys of the desktop wallet are not stored with any third party vendor.
- The desktop wallets are extra safe, as it is stored in your home.
- When the desktop wallet is connected to the internet, it becomes less secure.
You will be surprised to know that the crypto wallets are not only available in software form, but it is also available in hardware form. The hardware wallet stores the private keys of your wallet in the USB drive. The Hardware wallet always stays offline, and thus, it is considered a cold wallet.
Advantages of Hardware wallet
- Safer as compared to other types of wallets
- It can store large quantities and amounts of cryptocurrencies.
Disadvantages of a hardware wallet
- The hardware wallet is a bit expensive as compared to other types of wallets.
All these crypto wallets have certain advantages and disadvantages. Use one which can give you maximum benefits.