Cryptocurrency wallets are used for the transaction and storage of the digital currencies like bitcoins. Many of the popular cryptocurrencies have their own official wallet. Some of the wallets store a certain currency while others store more than one. Some wallets store public address, which are like account numbers, to receive a certain type of cryptocurrency. A wallet can be used to move funds with the help of blockchain by the owner of that fund. A wallet is a platform like online banking with blockchain as digital register.
Types of Crypto-Wallets
There are several digital wallets used to store the cryptocurrency. Each type has its own advantages and disadvantages over other. Online, mobile, desktop, hardware and paper wallets are some of the majorly used wallets for the cryptocurrency. Online or web wallet is a least secure wallet but can be used for small amount of cryptocurrency. These wallets provide users with the fast transaction. Mobile wallets are apps for payment by cryptocurrency in various shops where this currency is acceptable. These are more secure than online wallets and provide a feature of a QR code.
Hardware wallets are one of the safest types of cryptocurrency wallets. These store private keys in a CD, USB drive or hard disk. Despite the fact that these wallets are offline, they can still be used online. These are used to store a large amount of cryptocurrency which is not used on daily basis. A paper wallet is an extremely offline wallet, which has printed public or private keys. Transfer of funds is either done by the public address or by entering private key or scanning the QR code on the paper.
Disadvantages Of Cryptocurrency Wallets
With the increase in the types of wallets, they are gaining or losing the advantage over other. Online wallets have a risk of online security, computer virus and interference of the third party. Mobile wallets have a risk of losing data due to the damage or losing of a mobile phone, and mobile viruses. Desktop wallets, when connected to the internet, become less secure.