Wanting to own a cryptocurrency is an easy thing. Keeping one, however, is a difficult task.
You need to choose one crypto wallet among many other storage options, not all of which are equal with each other. Some are made more convenient but less reliable, while others are the opposite.
In what wallet should you put your beloved digital tokens? Which among the five types suit your preferences? Read on to find out about the pluses and minuses of each crypto wallet:
#1 Paper Wallet
Like what its name suggests, paper wallets are literally pieces of paper where your public crypto address and private keys are printed. Some wallets of this kind already feature QR codes, which you can scan using your mobile device.
Paper wallets are one example of cold crypto storage — those not connected to the internet. This means that your paper wallet is safe from hackers. In addition, the slips are just centimeters thin — you can keep them almost anywhere.
However, it is easy for anyone to lose a small piece of paper, mostly out of negligence or theft. Either way, once you lose your paper wallet, somebody else might pick it up, together with your entire crypto funds.
#2 Hardware Wallet
If you choose a hardware wallet, expect protection from hacking and most malicious programs as this type of wallet is also cold storage. As an added security feature, your device will need a security number you need to input physically before anyone can access the hardware wallet.
But like paper wallets, losing your hardware wallet could spell trouble. In addition, owning this type of wallet will not make you immune to fraudsters and scam exchanges.
#3 Online Wallet
Online wallets are crypto storage where you keep your digital tokens at the hands of third-party wallet operators. These providers promise to take care of your funds on your behalf.
In using your online wallet, you can access your crypto funds from anywhere across the globe. In addition, the responsibility of warding off security threats from your cryptos fall not on you but on these online wallet providers.
Be warned, though. As hot storage — or as it is linked to the internet — your online wallet can be compromised by malicious individuals. Not only that, but the operators can also run away with your crypto funds in tow, leaving you with nothing but regret.
#4 Desktop Wallet
Unlike online wallets, you have total control of your cryptos if you own a desktop wallet. You can create your own address for receiving virtual coins from your friends.
Freedom, however, entails huge responsibility. Also different from online wallets, the security of your crypto funds is solely in your hands. If you could not keep your desktop PC clean or secure, then you might as well say goodbye to your tokens.
#5 Mobile Wallet
This type of crypto wallet requires you to install an application on your smartphone and mobile device. Your mobile wallet can be similar to online wallets — third-party storage — or desktop wallets — local storage.
Since it is installed on your smartphone, you can bring your mobile wallet like that of Coinbase anywhere you want. You can also use your mobile wallet to pay for food or coffee using your cryptos.
However, just beware of thieves. Once these sneaky robbers get a hold of your phone, they may also access your crypto funds.