Everyone who has just started learning about cryptocurrencies and their nuances must have also come across the terms ‘crypto wallet’ several times. It is one of those things that are essential for anyone who wants to own, trade, or invest in digital currencies like Bitcoin, Ethereum, Litecoin, Ripple and others. With so many different types of cryptocurrencies and an array of related terms, it’s no wonder new users struggle to get their heads around it all. One concept that crops up time and again in articles about crypto is the crypto wallet. A crypto wallet is secure digital storage for your cryptocurrency tokens like Bitcoin, Ether and so on. There are different types of crypto wallets that you need to know as an aspiring investor or trader of virtual coins. If you are someone who enjoys a game or two of online gambling and like exploring new sides of the digital world, visit the 7Slots online casino to change your fate. Let’s now take a look at what each type of crypto wallet is and its benefits:
Blockchain Wallet
A blockchain wallet is the most popular and widely used cryptocurrency wallet. Any wallet that supports Bitcoin, Ethereum and many other cryptocurrencies is a blockchain wallet. Blockchain wallets are available as online wallets, desktop wallets, and mobile wallets. You can create a blockchain wallet when you sign up for any cryptocurrency exchange where you can buy and sell cryptos. Some of the most popular cryptocurrency exchanges that you can use to create blockchain wallets are – Binance, Coinbase, Bittrex, and more.
Online / Cloud Wallet
Online or cloud wallets are the easiest to create and manage. Cloud or online wallets are software-as-a-service (SAAS) products that store your crypto assets online. They are the easiest way to get started with cryptocurrencies, but they are not the most secure. Some of the top cloud wallets are – Coinbase, Binance, and Bittrex. These are easy to set up, and you can fund your account with currencies like USD or EUR. All the major cloud wallets will allow you to create an online wallet to store your cryptocurrencies. Many of the online wallets also offer a mobile app so that you can access your crypto assets from anywhere. The main disadvantage of online wallets is that they are not as secure as hardware or paper wallets. The other issue with online wallets is that you are at the mercy of the online wallet provider. If the provider’s servers go down, you won’t be able to access your crypto assets.
Desktop Wallet
Desktop wallets are software wallets that you install on your PC or laptop. You can store any cryptocurrency in a desktop wallet, but you have to transfer your assets to a more secure wallet if you plan to store your cryptocurrencies for a long period of time. Some of the best desktop wallets are Exodus and Jaxx. The main advantage of a desktop wallet is that it is more secure than a cloud wallet. This is because you have full control of your desktop wallet and your private keys. The disadvantage of desktop wallets is that you can only access them when you are logged into your PC or laptop.
Hardware Wallet
If you want to invest in cryptocurrencies, you should invest in a hardware wallet. A hardware wallet is the most secure crypto wallet out there. If you own a hardware wallet, you can rest assured that your crypto funds are safe. Some of the best hardware wallets are Ledger Nano S, Trezor, and KeepKey. You can store any cryptocurrency in a hardware wallet. Your private key is stored in a secure chip in the hardware wallet. You can easily transfer your funds from the wallet to an online wallet when you need to trade cryptocurrencies.
Paper Wallet
Paper wallets are an old-school way of storing your crypto assets. A paper wallet is basically a type of offline storage that is completely detached from the internet and exchanges. You can create a paper wallet when you generate a random set of private and public keys and store them on a piece of paper. Your private keys are completely offline, and you have no way of losing or misplacing them. The only disadvantage of a paper wallet is that it is hard to manage and use. You have to manually transfer funds from the paper wallet to an online wallet before you can trade.
Exchange-Based Wallets
Some cryptocurrency exchanges also offer their own wallet services. These are known as exchange-based wallets. The advantage of using an exchange-based wallet is that you don’t have to create and manage your own wallet.
Summing Up
Cryptocurrencies have created an entirely new industry ever since they were first conceptualized. Since they are digital assets, you need a digital storage space to keep them. This is where crypto wallets come into the picture. A crypto wallet is secure digital storage for your cryptocurrency tokens like Bitcoin, Ether and so on. These are the different types of crypto wallets that you need to know as an aspiring investor or trader of virtual coins.
