There are various types of Cryptocurrency wallets to allow users to store and access their digital currencies in different ways. The relevant question in this context is how far this wallet is safe. Before taking security aspects, it is very helpful to understand the various types or varieties of the current Cryptocurrency wallet.
Cryptocurrency Wallet: Types and Varieties
This wallet can be widely classified in 3 categories:
Hardware wallet and
The Cryptocurrency software wallet can be divided into desktop, online and cellular wallets.
Desktop software wallet: This wallet is intended to be downloaded and installed on a desktop and laptop PC. This particular variety offers the highest security level even though the accessibility is limited to the computer where they are installed. In addition, if any, if the computer is hacked or infected with a virus, it is possible that someone might lose all the money.
Online software wallet: Various Cryptocurrency wallets run in the cloud. Thus, they can be easily accessed from any computing device and from any geographical location. Apart from the comfort of accessibility, this type of digital wallet stores a private key online. The keys are even controlled by third parties; This makes them easily susceptible to hacking and theft.
Wallet Mobile Software: Unlike two other varieties, cellular software wallets run on smartphones through the application. It can be easily used everywhere, including retail stores and malls. This wallet range is usually much simpler and smaller than the normal desktop to accommodate with very limited space on mobile handsets.
Difference between hardware wallet and software
Hardware digital wallets vary from software to the aspect of storing the user’s personal keys. Hardware wallet stores user keys in hardware devices (for example, USB). Thus, because the key is stored offline, this wallet offers additional security. In addition, hardware wallets are easily compatible with many online interfaces and can also handle different currencies. Various Cryptocurrency Wallets are also easy to transactions. As a user, you only need to plug the device into any computer, which is connected to the web before entering a PIN, transfer currencies and only confirm the transaction. Your digital currency is stored offline by hardware wallets and thus, risk factors or security problems are also much lower.
Digital wallet paper: various digital wallets are also users friendly and ensure high-level security. The term “paper wallet” only refers to hardcopy molds from public and personal users. However, given the instance, it can also refer to the software application that is intended to produce a lock safely before printing.
Sweep with a paper wallet
Using a paper wallet is relatively easier. To transfer any cryptocurrency to your paper wallet, just move the funds from the software wallet to the public address, which display your paper wallet. Similarly, when you want to spend or withdraw your money, just move the funds from the paper wallet to your software wallet. This procedure is popularly referred to as ‘sweep’.
Sweepingers can be done manually, by inserting a private key or scanning the QR code on the paper wallet.
How safe the Cryptocurrency wallet is
Various digital wallet varieties offer different levels of security. Security aspects mainly depend on two factors:
The type of wallet you use – hardware, paper, online, desktop or mobile
Selected service provider
No need to mention, it is much safer to keep the currency in an offline environment, compared to online. There is no way to ignore security measures, regardless of the selected wallet. If you lose your person