Crypto wallets allow you to send or get cryptos and make transactions, There are different types of wallets. At first they can be hot or cold. Hot wallets are connected with Internet. There are user-friendly and not so friendly as well, however, these type of crypto wallets are more risky because of the internet access to user’s privacy and security. These are all online and desktop wallets.
Cold wallets are not connected to the internet and are more secure. There are hardware devices or paper wallets. Besides, wallets are divided into 5 main types.
Online wallets (Web wallets)
Online (or cloud-based) in most cases are accessible from any device and any location. There are very easy to set up and use from desktop and mobile applications. Private cases in this wallets are stored in the cloud and controlled by third party that makes them more vulnerable for hacking.
In most cases web crypto wallets connected with exchanges like Coinbase, many of these kind of wallets offers security features like offline storage.
Mobile wallets are one of the convenient wallets as you will have access to your digital currencies wherever you are. It stores your private keys and allow to pay for goods in shops or trade them. These kind of wallets in general are much smaller and easy in use than other cryptocurrency wallets. Nevertheless, there are more risky than others.
Desktop wallets are downloaded on your PC and laptop. You have access only from that computer in which they are installed. It is considered that these wallets are one of the most secure. However they are connected to the Internet, so it doesn’t exclude the possibility of being hacked.
Different desktop wallets has different advantages. Some desktop wallets focused on security, some on anonymity.
Hardware wallets store a user’s private keys in a hardware devices. It’s a probably the most secure type of wallet as they are in most cases are offline. These wallets could support different currencies which makes them convenient to do transactions.
There are hardware wallets that have screens, it helps users verify and display important wallet information. Using these wallets is a good way to transact easily and, besides, keep money offline so keep it more secure.
Paper wallets are pieces of paper with public and private keys on it. The keys are printed as a QR codes, so it’s a convenient to scan and use for transactions. They provide the highest level of security, you can store them in a secure place. There is no need to worry about hackers or about the condition of hardware.