If you are following my previous articles, you would by now, have completed a mini-course on starting in Crypto-verse. If not No worries. Just read along.
- First, understand why its the best time to invest in crypto HERE.
- Then we discussed what can be bought HERE.
- After that, it is important to understand where to buy the cryptos HERE
- Done. Well then now its time to store it safely. And those bitcoins & alts are to be stored digitally in Wallets.
The simplest way to explain it is that it is a software to store coins securely. A more comprehensive explanation would be that it's a programmed software where you keep your public & private keys & is used to receive & send any coin through its blockchain. With wallets, we maintain full control of our money without any need of the third party.
Why we need full control. Simply because the money you think you own is only a simple IOU. Its control is with the government/banks/third parties & has plenty of fundamental flaws the way it can be manipulated to benefit the few. But with cryptocurrencies, what you own is absolute power to decide about how to manage or control your hard earned moolah. And it been in digital format, we need a source which is our digital wallets.
Cryptocurrency Wallet Types
We will discuss 5 different types of digital storage wallets available as of today. They are -
- Paper Wallet
- Hardware Wallet
- Online Wallet
- Desktop Wallet
- Mobile Wallet
- What - It is a hard copy of your public & private keys printed
- Why - They are the safest option among all other
- Where - It can be stored physically & can be used to send/receive coins by entering your public address or private keys or scanning the QR code on the paper wallet
- Example - open source wallet generator BitcoinpaperWallet.com
- What - A device to store users private keys, mostly looks like a USB drive.
- Why - They are mostly offline & are compatible with most available browsers.
- Where - You can plug it anywhere by merely plugging the hardware wallet & authorizing yourself to send/receive supported currencies without disclosing your private keys
- Example - Ledger Nano or Trezor
- What - They are software which runs on cloud storing your public & private keys
- Why - Online wallets are convenient to use & there is no chance of any physical damage or losing it.
- Where - As it can be accessed from any device with just an internet connection, they are very mobile.
- Example- Binance.com (any exchange website)
- What - They are software which sits on your desktop & is used to store your crypto keys
- Why - Desktop wallets are safer than online wallets as it remains on your installable device
- Where - They are available to be installed on any laptop or desk computer
- Example - Bitcoin Core
- What - They are simple phone applications
- Why - THey are easier to use when you need to pay in physical stores through supported payment apps & are safer than cloud-based wallets
- Where - Mobile wallet apps are available on the app store by just installing an app & creating an account on it to store supported currencies
- Example - Jaxx
As you can see all the above wallets have their ease & utility. I do hope the above information helped you to understand the different & difference in crypto wallets. Once it's stored, you can start trading & to do that safely & profitably read my article HERE
Wishing all Abundant Wealth