Different Types of Cryptocurrency Wallets- All You Need to Know

Cryptocurrency wallet is quite similar to the real wallets that you carry around in your pocket; the only difference being the wallet is digital and so is the money. In the world of cryptocurrency there are a number of cryptocurrency wallets to choose from, and today we are going to talk about the five different types of cryptocurrency wallets and how they work.

You might have a fair idea about the digital wallets, which you also knew as e-wallets. Each and every one of digital wallets can be used for doing different kinds of bill payments, but when it comes to cryptocurrency wallets, it is a whole new ball game.

5 Different Types of Cryptocurrency Wallets That You Need to Know

1. Online wallets

This is the kind of wallet, which is incredibly easy to use, but it is one of the least secure kind of wallet. But there are many people who use online wallets because it has a number of advantages.

All you need to do who is to get access to the internet and you will be able to do all sorts of bill payments with this wallet. You will be able to operate it from various devices and get your payments done in the most instant minor. Even when you are traveling, you will be able to do transactions with the help of online wallets. The only disadvantages of this wallet are that your personal information can be e leaked out, and it might get hacked easily which is why your money might not be secure.

2. Mobile wallets

Mobile wallets are always there on your mobile devices like cell phones and tablets, and they are available in the application format which has to download it from the Play Store. You will be able to use this kind of mobile wallets for or getting all your shopping done from the physical stores and is used by one and all.

In some kind of mobile wallets, you will be able to use them in desktop as well as mobiles, but in the case of the Other wallets, there are only compatible with mobile devices. Some of the best pros of the mobile wallet are it is absolutely safe then the online wallets, and you can even use the mobile application for your daily transactions. You will also be able to make instant payments with the help of QR code and scanning facilities.

If you ask about the disadvantages of the mobile wallet, then you have to understand that once your phone is damaged or lost you are cryptocurrency acids might get adversely affected. Also, your mobile can be affected by a virus or Malware, which is again not good for your assets.

3. Desktop wallet

This is another kind of cryptocurrency wallet, which is, even more, safer than the online wallets. You will be able to keep it in your desktop or laptop, and it is safe because it is encrypted and even if something happens to our computer you will not lose out on your money.

It is correctly known as the cold wallet because you will be able to store your money for long periods of time without any fear of hacking or security leakage. Also, show the private keys only with you and not with any third party interference so unless and until you give out your private key, there is no way in any transaction which can take place. If your computer is not connected to the internet, then it is even safer.

Talking about the disadvantages of desktop wallets,  you have to understand that with the connectivity of the internet it becomes a little less secure and you need to keep a backup so that even if the computer gets formatted, you are cryptocurrency does not get adversely affected.

4. Hardware wallets

In case of hardware wallets, all the private keys are stored in something like the USB drive so that you can make online transactions and even stole the money like a cold wallet for a long period of time.

It is one of the safest trips to wallet options that you can choose, and you will be able to store even large amount of money without any worries. The only downside of having hardware wallets is that it is a little bit expensive and if you are a beginner you will have some problems in understanding how it works.

5. Paper wallets

If you have been looking for a super fall trip to wallets, then this is the best kind of thing that you should opt for. In this kind of wallet, you will be able to print out your private as well as public keys and the best part about this system is that it is incredibly safe and cannot be hacked by anybody.

But it is not as user-friendly as the online and mobile wallets, and if you are looking for a wallet for your day to day transactions, this is not the best option.

You know about the five different kinds of cryptocurrency wallets, in accordance to delta.exchange, all you have to do is to choose different wallets for different purposes so that your cryptocurrency can be stored in the safest possible manner.