Facebook Twitter Instagram
    Coinrevolution
    • Cryptocurrency
      • Crypto Exchanges
        • Binance Review
        • Bitstamp Review
        • Bitvavo Review
        • BTC Markets Review
        • Blockchain.com Review
        • CoinJar Review
        • CoinMetro Review
        • Gemini Review
        • Kraken Review
        • Newton Review
        • Liquid Review
        • Wealthsimple Review
      • Price Prediction
        • Akita Inu Price Prediction
        • ANKR Price Prediction
        • Avalanche price prediction
        • BizzCoin Price Prediction
        • Carando Price Prediction
        • Cartesi Price Prediction
        • Dogecoin price prediction
        • Dogelon Mars Price Prediction
        • Enjin (ENJ) Price Prediction
        • Ethereum Price Prediction
        • Gala Price Prediction
        • GRT Price prediction
        • Harmony ONE Price Prediction
        • IoTex Price prediction
        • Loopring Price Prediction
        • NuCypher Price Prediction
        • Polkadot Price Prediction
        • Ren Price Prediction
        • SafeCoin Price Prediction
        • Saitama V2 Price Prediction
        • Shiba Inu Price prediction
        • Siacoin Price Prediction
        • Stellar (XLM) Price Prediction
        • SushiSwap Price Prediction
        • Vechain Price Prediction
        • Xrp price prediction
      • Buy Cryptocurrency UK
        • Best Crypto Exchanges UK
        • Buy Bitcoin UK
          • Best Bitcoin Wallet UK
          • Buy Bitcoin With Credit Card UK
        • Buy DigiByte Coin UK
        • Buy Dogecoin UK
        • Buy Ethereum UK
        • Buy IOTA UK
        • Buy Monero UK
        • Buy Siacoin (SC) UK
        • Buy Stellar Lumens (XLM) UK
        • Buy VeChain (VET) UK
        • Buy XRP UK
      • Buy Cryptocurrency Australia
        • Buy Bitcoin Australia
        • Cryptocurrency Exchanges Australia
        • Best Crypto Wallets Australia
      • Buy Cryptocurrency Canada
        • Buy Bitcoin Canada
        • Crypto Exchanges Canada
        • Crypto Wallets Canada
        • Buy Ripple Canada
      • Buy Cryptocurrency Ireland
        • Buy Bitcoin Ireland
        • Crypto Exchanges Ireland
        • Crypto Wallets Ireland
      • Buy Cryptocurrency South Africa
        • Bitcoin Exchanges South Africa
        • Buy Stocks Ireland
        • Buy Ethereum South Africa
        • Buy Ripple (Xrp) South Africa
      • Crypto Exchanges New Zealand
      • Buy Cryptocurrency UAE
        • Crypto Exchanges UAE
        • Buy Bitcoin UAE
      • Buy Cryptocurrency Singapore
        • Buy Bitcoin Singapore
      • Buy Cryptocurrency Thailand
        • Crypto Exchanges Thailand
        • Buy Bitcoin Thailand
      • Buy Cryptocurrency Qatar
        • Crypto Exchanges Qatar
        • Buy Bitcoin Qatar
      • Buy Cryptocurrency Philippines
        • Cryptocurrency Exchanges Philippines
        • Bitcoin Wallet Philippines
      • Buy Cryptocurrency Saudi Arabia
        • Buy Bitcoin Saudi Arabia
    • investing
      • Best investment platforms UK
      • Best Investment Apps UK
      • Invest In Cryptocurrency Australia
      • Invest In Gold Australia
      • Invest In Silver Australia
      • Invest In Crypto New Zealand
      • Invest and Buy Shares South Africa
      • Invest In Bitcoin Philippines
      • Loans
        • Cash Loans Online
        • Cash Loans Wired in 1 Hour
        • Emergency Loans for Bad Credit
        • Online Payday Loan Canada
        • Payday Loans Ireland
    • Trading
      • Stock Trading Apps Ireland
      • Trading Apps South Africa
      • Trading Platforms South Africa
      • Forex
        • Free Forex Signals UK
        • Forex Trading For Beginners UK
        • Forex Trading Platforms UK
        • Forex Brokers UAE
        • Forex Trading Saudi Arabia
    • Brokers
      • Brokers UK
        • MetaTrader 4 Brokers UK
        • Crypto Brokers UK
        • Stock Brokers UK
      • Stock Brokers Ireland
      • Brokers Compare
        • Chime VS Cash App
        • Betterment vs. TD Ameritrade
        • Questrade vs. Wealthsimple
        • Tastyworks vs Robinhood
    • Trading Software
      • Bitcoin Software A-L
        • Bitcoin Billionaire
        • Bitcoin Circuit
        • Bitcoin Code
        • Bitcoin Compass
        • Bitcoin Equalizer
        • Bitcoin Era
        • Bitcoin Evolution
        • Bitcoin Fast Profit
        • BITCOIN GEMINI
        • Bitcoin Loophole
      • Bitcoin Software M-Z
        • Bitcoin Millionaire
        • Bitcoin Prime
        • Bitcoin Profit
        • BITCOIN SUPERSTAR
        • Bitcoin Trader
        • Bitcoin Up
        • Bitqt
      • Crypto Engine
      • Crypto Genius
      • CryptoSoft
      • Ethereum Code
      • Immediate Edge
      • Oil Profit
      • The News Spy
      • Yuanpay group
      • 1K Daily Profit
    • Contact Us
    Facebook Twitter Instagram
    Coinrevolution
    Home » Complete Guide To Cryptocurrency Wallets
    News

    Complete Guide To Cryptocurrency Wallets

    adminBy adminDecember 19, 2018No Comments5 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Virtual currencies have given rise to various products among them the Cryptocurrency wallets. Selecting the right wallet is one of the greatest challenges that many Crypto traders face. This guide will allow you to learn everything you need to know about Cryptocurrency wallets.

    What’s Crypto Wallet?

    A Cryptocurrency wallet is software designed to store your coins. Whereas a physical wallet enables you to store physical fiat currencies, a digital wallet stores your private and public keys, allowing you to transfer and receive Cryptocurrencies through blockchain and monitor your balance.

    How Digital Wallets Work

    How Digital Wallets Work

    Cryptocurrencies are non-existence in physical form and are not stored in a single location. Instead, only the transaction records kept on blockchain networks remain as proof of their existence. Your private and public keys in a Cryptocurrency wallet are similar to your PIN and your bank account respectively. A Cryptocurrency wallet gives you control of your coins.

    Sending a Cryptocurrency means sending its VALUE as a transaction. When you send a coin to someone, their private keys must match the public address you sent the coins to be able to spend them.

    The same way you need a PIN to access your funds in your bank account, the same way you need the private keys to access your Cryptocurrencies. Anyone who gets hold of your private keys gains control over your altcoins. Consequently, you should ensure your private keys are not accessible to any other person. If you fail to recover your lost private keys, you’d also lose your funds. Always ensure you have their backup.

    Although Cryptocurrency exchanges provide their users with exchange-hosted wallets, it’s not a good idea to rely on them to store your coins as you don’t have control over your private and public keys. As third-party service providers, they may shut down or get hacked leading to the loss of your coins. Besides, one must have a private wallet to participate in ICOs.

    Cryptocurrency wallets are quite different from the regular e-wallets. Due to the complexity of the blockchain system, selecting the right wallet requires effort and research. Let’s discuss the different types of digital wallets that you could use to securely store your Litecoin, Ethereum, Bitcoin, or any other Crypto.

    Types Of Cryptocurrency Wallet

    The three main categories of Cryptocurrency wallets are paper, software, and hardware.

    Hardware Wallets

    Hardware wallets store private keys on a device, mainly USB drive. Most of these wallets are compatible with various web interfaces. These wallets are secure as they can store private keys offline. You only need to plug them into a device that is internet enabled to send or receive different Cryptocurrencies after authorizing yourself. These wallets are very expensive.

    Software Wallets

    Online: Online wallets are run on the cloud. This means you can access your funds wherever you are as long as there’s an internet connection. They are therefore more convenient than desktop wallets. However, given that your private keys are controlled by third parties and stored online, they are vulnerable to hacking and theft.

    Desktop: Desktop wallets are downloaded and installed on laptops or PCs. These wallets are considered more secure than mobile and online wallets as they are safe when not connected to the internet. However, given that they are only accessible from the machine they are installed, it means one cannot use his/her coins when not around. Furthermore, you may lose your coins if the machine is attacked by a virus or hacked.

    Mobile: Mobile wallets are downloaded and installed in mobile devices. Although they are not as secure as desktop wallets, they beat online wallets. They are popular because they are simple to use and can be used almost everywhere. However, you may lose your coins if your phone is lost, encounters a security breach, or breaks down.

    Paper Wallets

    Physical wallets are regarded as the safest way to store Cryptocurrencies. In this type of wallet, your generated private and public keys are contained in a physical copy or printed on a piece of paper. You can scan the QR code on the paper wallet or enter your private keys when you want to send or withdraw your funds.

    Comparing Cold And Hot Wallets

    Whereas hot wallets are connected to the internet, cold wallets are not. Online and desktop wallets are examples of hot wallets. On the other hand, cold wallets include the likes of hardware devices and paper wallets.

    Cold wallets are considered more secure because there is no way a hacker could access the funds. Besides, such wallets are known for storing large amounts of virtual currency. Therefore, you don’t have to worry about where you’ll store all your key data.

    However, cold wallets are slow and inconvenient to deal with. Given that they are not connected to the internet, it’s quite time-consuming to access them, especially when in a hurry. Moreover, to bring your private keys back online, you have to find them in the offline storage. However, these challenges cannot compare to the benefits that the wallets bring.

    Hot wallets are very convenient to deal with as no time is wasted in getting the private keys. Furthermore, you can use various devices (e.g. phone, tablet, or desktop) to access them. However, since they exist online, they are vulnerable to cyber-attacks.

    To ensure your coins are stored safely but accessible at the same time, it’s advisable to adopt a mix of hot and cold wallets. Since cold wallets are more secure, keep most of your Cryptos there. You should also keep a few coins in a hot wallet for regular uses.

    Click to rate this post!
    [Total: 0 Average: 0]
    Backup Blockchain coins cryptocurrency wallets hardware software
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    admin
    • Website

    Related Posts

    US SEC Is Set To Classify Bitcoin As A Commodity

    June 29, 2022

    It’s A Buyers’ Market As The Bears Persist

    June 28, 2022

    Crypto Exchanges Face Challenges In India, But The RBI Continues To Support Blockchain

    June 27, 2022
    Guide
    • Cryptocurrency
    • Forex
    • Trading
    • Investing
    • Brokers
    • Trading Software

    Trading is very risky. Consult a financial advisor. Coinrevolution does not guarantee the accuracy of the presented data and is not responsible for any trading decisions. Please read our full disclaimer

    Facebook Twitter Instagram Pinterest
    • Risk Disclaimer
    • About Us
    • Privacy Policy
    • Contact Us
    © 2022 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT
    Go to mobile version