Cryptocurrencies deal in coins that are transacted across wallets. Each wallet has a private key which is only accessible to the owner of the wallet. However, choosing the perfect wallet, which not only safeguards your money but also is quick to respond to transactions, is a cumbersome task. This quick guide will help you overcome that confusion.
The Hardware wallets are small devices that are plugged into your electronic devices, namely, computer or phone. The hardware wallet generates private keys securely in an offline environment. The best part about hardware wallets is that many unlike the other normal wallets which generate private keys on internet-connected devices like computers or mobile phones, they do to complete offline.
Advantages of hardware wallets
- Private keys aren’t exposed to the outside world
- Hardware wallets cannot get infected by computer viruses or malware
- You must be in ownership of the hardware to confirm a transaction, thus preventing any possibility of remote hacking
- Most hardware wallets are encrypted with a PIN or other security feature
- If you lose your hardware wallet, you can still recover your coins
Among the most popular of hardware wallets is Ledger Nano S. Costs $95 and is built and distributed by Ledger, a France based company.
Cryptocurrency Software Wallets
Software wallets include an assortment of several wallets, but in reality, they are wallets that are downloaded or accessed digitally. These wallets are online/web wallets, desktop wallets, and mobile wallets.
Mobile Cryptocurrency Wallets
These are wallets that are downloaded from the app store in the form of an app. The said app, which you have downloaded stores the cryptocurrency.
Mobile wallets are easy to use and are safer than online ones. These are generally for those who pay for transactions.
- These apps are quite easy to use
- They are safer than the online one
- Mobile wallets are for those who use cryptocurrency regularly
- Though mobile wallets are safer than the online ones, they are still vulnerable as long as the phone is connected to the internet.
- If the phone gets stolen, then your mobile wallet can be accessed.
One of the most popular mobile wallets is pocket 2.0. It is not just a wallet providing a safe and secure means to collect coins but also connects the user to a large number of dApps. Coinomi and Jaxx are other mobile wallets which play a similar role.