Here is what you need to know about 5 types of cryptocurrency wallets - I became rich using this method and now I make over $10,000 monthly.
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Scott Evans
31.08. 2018 11:19  | 

Just like you need a wallet to keep your money, you need a digital wallet to keep your digital money; terms have changed but the concept hasn’t. Your digital wallet is what protects your digital money, which means the safety of your money depends on how secure your wallet is.

What exactly is a digital wallet?

I will keep the explanation simple; it is a place where you not only keep your payment but also your identification information. These wallets are important to organize your payments and purchases. If you lose your digital wallet, you will lose all your money and there is virtually no way to retrieve it.

With so many options available, you need to find the wallet that offers the right combination of security, ease of use and performance.

To help you make the right decision here is an overview of all five different types of digital wallets you can use.

Mobile Wallets

As the name suggests, these wallets are with you wherever you go; this is basically an app that is downloaded and stored on your phone. Even though these wallets are extremely handy but this advantage comes with a few security risks.

If you lose your phone or it gets stolen, you will lose all your money. It is highly possible that your identification information and other passwords and keys will be accessible to the person who gets a hold of your mobile phone.

Online Wallets

These are present in the cloud and that makes them accessible from different locations, using a web browser, as long as you have an internet connection. The biggest concern with online wallets is the security. Since these exist in the cloud and your information is stored in a third-party location, therefore, they are a prime target for hackers. Plus you also have to be careful while choosing your wallet provider because there are many scammers fishing for wealth.

Desktop Wallet

This kind of a wallet is installed on your laptop or any other personal computer and can only be accessed from the device it is installed on. Desktop wallets are considered safer than its online counterparts. The biggest pitfall is that if your personal computer gets hacked or breaks down you will lose all your data. Moreover, the desktop wallet is not as portable as you would like.

Paper Wallet

This involves the good old paper where you can save all your information and keep it with you. This is perhaps the safest wallet unless you lose your paper or it gets stolen. You can save your private and public key information on a paper instead of using the cloud or any other third party for storage. You may need to put in a little more time and effort into entering the required information to access your money and make transactions.

Hardware Wallets

As the name suggests these wallets require hardware for storing your identification information and private and public keys. The most commonly used hardware is a wallet compatible USB that can be accessed through any device that has a USB port. The data, for the most part, remains offline, which makes it secure than online wallets. This type of wallet is great if you have a generous amount of cryptocurrency and need to keep it mobile.

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