When you decide to trade in digital currencies, the first step you need to take is to choose the wallet type through which you can send or receive digital currencies like ethereum, litecoin, bitcoin, etc. Once the wallet is chosen you can start trading immediately. Below mentioned are different types of wallet present in the cryptocurrency market. There are mainly five wallets exist in the market.
Types of wallet and its advantages
Online or web wallet – Web wallet or online wallets are those wallets that you can access through the web browser. Be cautious when you choose this wallet as the hackers will find a way to get into this wallet. You will also be susceptible to malware, phishing scams and so on. The benefits associated with this wallet are that it guarantees faster transaction and is best for holding smaller cryptocurrency funds.
Mobile wallet- This wallet can be accessed from anywhere using your mobile device. It is best to send or accept payments when you are on the go. Also it comes with QR code scanning. But ensure that your mobile device’s security software is updated all the time.
Desktop wallet- Desktop wallet is considered more secure when compared to mobile wallet and web wallet and the most user-friendly one. If you have used the best security software then you need not have to worry about any scams or hackers. If you do not want to open up a wallet on your own, you can opt for the service of trading software called as crypto VIP club to guide you through the transactions.
Hardware wallet- These wallets are not as user-friendly as the desktop wallets and web wallets but easier to use than the paper wallets. It is also more secure than mobile and web wallets. Some of these wallets require batteries while some other don’t need. Some of them have screen so that you don’t have to connect it to an insecure computer in order to back up the private keys. They offer better control and best for storing huge amount of digital currencies which you don’t have to move around all the time.
Paper wallet- This is most-hacker proof crypto wallet and it is not stored on a computer. Also the private keys are not sorted on any third party server. Before the hardware wallet was introduced this was the wallet chosen by everyone for cold storage.