What types of cryptocurrency wallets exist

When buying bitcoins or any other cryptocurrency, it is necessary to take care of them so that they remain safe. That is why it is important to know the main types of wallets or wallets existing.

The decision on which is the best depends on each need and use. In fact, each type of wallet is best suited to a specific purpose and user profile.

Hardware wallets (hardware wallet)

  • Are similar to pen drives: small devices that connect through USB ports.
  • Given that the validation of transfers is performed by the hardware wallet itself externally, its use is safe even on infected devices.
  • In order for them to fulfill their function in the best way, the private keys of the address (which work as a “password” for the account) must be stored offline.

Paper wallets (paper wallets)

  • They are so simple that they only consist of a piece of paper with the private key and the public address printed or written.
  • There is no need to leave data online that could be exposed to attack; and that helps prevent theft or hacking of access to funds.
  • In any case, it is important that don’t let other people have access to that paper, since that would allow them to operate with your funds.

Computer wallets (desktop wallets)

  • Bitcoin and so many other crypto networks have computer programs (software) created to operate as wallets.
  • Some of these “desktop” wallets use a external copy of the blockchain for the computer to access the network.
  • Other more robust, such as BitcoinCore, they download the entire Bitcoin block chain to your computer, consuming a lot of space, processing and internet bandwidth.

Cell phone wallets (mobile wallets)

  • smartphones are tools present at all times in our lives, and these wallets allow us to operate anywhere, anytime.
  • Some very interesting options allow synchronize your computer and cell phone wallets.
  • When choosing a mobile wallet, verify that the private key is in your possession. Thus, in case of any problem, you can access your funds from another device or wallet.

Online wallets (web wallets)

  • These wallets depend on a company that takes responsibility for security of cryptocurrencies.
  • To use them, there is a process of registration and credentials, similar to email.

How to choose a cryptocurrency wallet?

Some cryptocurrency users prefer to use hardware wallets to store the ones you don’t plan to use for a long time, while for smaller amounts in crypto, intended for routine use, they opt for an online wallet.

It is important to remember that different wallets with different security measures can be combined, according to the purpose of each wallet.

If possible, we recommend that you try various ways of storing your coins, so that you can experiment which one best suits your needs.