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Each trader or investor need a good cryptocurrency wallet.
What is a cryptocurrency wallet?
A cryptocurrency wallet is a specially designed piece of software, some without software, that can securely store your Bitcoin and other cryptocurrencies. These wallets are offered by brokers, cryptocurrency exchanges and third-party sellers. There are different types of cryptocurrency wallets with different features and security levels. We will therefore introduce the basic types below.
A web wallet is a crypto wallet that is only accessible online through a web browser. Most web wallets retain control of your private key, which means you’re essentially entrusting them with your cryptocurrency. Some of the best cryptocurrency exchanges offer users a web wallet, although this type of wallet is not as secure as the other types listed on our list. We will cover them more below.
Mobile wallets are similar to desktop wallets, but the only difference is that they are available on your mobile phone. Again, most of these wallets will be available on iOS or Android and will feature many of the same tools and concepts as web wallets.
This type of wallet is not like other types because it is not a hardware or software wallet. Instead, paper wallets are simply on paper. So it is a piece of paper that contains the public and private keys that provide access to your cryptocurrency. Although these keys are technically stored “offline”, paper wallets are quite obsolete these days because it’s easy for someone to steal the paper or write down the keys on it.
The advantage of this wallet is its type, the so-called “cold wallet”. This is a safekeeping of cryptocurrencies that takes place without an internet connection, so we are out of the reach of hackers.
Another popular way of safekeeping is the deskopt cryptocurrency wallet. These can be installed on a computer and are usually available for Mac OS, Windows or Linux operating systems. An example of some of the best desktop wallets can be Exodus or Electrum, which is due to the fact that they use advanced security features. Since these applications need internet access, they are not as secure as the “cold” ones.
This type of storage is a bit more secure than the online ones, however, we get down to the fact that you have to be careful about what files you install on the Internet or what websites you use to browse the Internet.
If you are looking for a more secure crypto wallet, we recommend hardware wallets. These wallets are physical devices that you can purchase from wallet companies that are used to store cryptocurrency assets offline.
Trezor and Ledger are two of the most popular companies that offer hardware wallets that connect to your computer via USB. Since you can store your private key offline, this type of wallet is considered the most secure of all options. However, they often lack the functionality of mobile and desktop wallets.