Whether you are with cash or cashless, having a wallet that stores your money is always important. It provides extra safety to your money. Although money has taken another form in the 21st century (I hope you are getting it), we are talking about cryptos. The method to save them still remains the same. The major question that arises here is how many types of Crypto wallets are there and which one is the best.
As we know that Internet has evolved and so does the crypto storing techniques. Instead of storing the cryptos in the software wallets now, we have three different means to store them. Yeah, you read that right. There are three different types of Crypto wallets available for crypto investors. All these wallets have their own pros and cons. If you are a beginner in crypto investment, this guide becomes more important.
Cryptos are considered more valuable than gold these days. Investors are more interested in investing in Cryptocurrencies than gold or any other stock. Well, if you are one of them or want to be one of them then we think, we don’t need to explain to you the importance of saving the Crypto in secure wallets.
As we told you, there are three types of Crypto wallets, and choosing the best out of these is a difficult task. So, here is a guide that will tell you everything about these wallets and finally we will deduce the conclusion about which one suits you the best.
Different Types Of Crypto Wallets
If you are a crypto owner, we suggest you put them in a wallet for safety. However, choosing the best wallet for Cryptocurrency is always a difficult task.
There are majorly three types of Crypto Wallets.
- Software Wallets
- Hardware Wallets
- Paper Wallets
Moreover, you can also classify these wallets as Hot and Cold wallets based on the criterion of their work.
1. Hot And Cold Wallets
A wallet can be defined as Hot or Cold, depending on the Internet connectivity.
Hot wallets are the ones that are connected to the internet. These wallets are user-friendly but less secure.
Cold wallets are the ones that do not require internet connectivity. These wallets are called more secure than hot wallets.
You need to keep in mind that Security is always a debatable issue. You can use it in both the pro and cons of the technology. However, we consider cold wallets more secure because they are not connected to the Internet. You can’t trust everybody you meet on the internet so, you can call Hot wallets more secure.
If you are following the NFT trend along with crypto, you must be aware of the OpenSea phishing attack that stole $1.7 million worth of NFTs.
Note: If you are transacting cryptos daily or more frequently then Hot wallets could be your first priority. If you are planning to store, and HODL (Hold For Dear Life) crypto then you must prefer Cold Wallets.
Also Read, How Crypto Mining Works | Step-by-step Process Explained
2. Hardware Wallets
Hardware Wallets are USB-looking devices that come battery-less and could be connected to the Desktop. These wallets also have an OLED screen that comes with slide buttons.
Hardware wallets hold the public addresses and the keys.
If you look at the cost of the hardware wallets then it might cost you around $70 to $15. But, looking at the security provided to Cryptos by the Hardware wallets the cost is worth it. These Hardware wallets provide you with a more user-friendly experience than Paper wallets.
Note: Hardware wallets are difficult for beginners, especially when low crypto investment.
3. Paper Wallet
The third type of crypto wallet is Paper wallet. These wallets are in the form of QR codes. Some of the wallets allow the users to download QR codes. These QR codes generate the new addresses offline.
Note: The best thing about the paper wallet is it is Hack proof. Well, it also comes with the flaw that you cannot send partial funds via paper wallet.
Also Read, Best Crypto Mining Hardware In 2022 | How To Earn Cryptos Easily?
Well, these are the three types of crypto wallets that you can look forward to while choosing the best Crypto wallet for saving your cryptocurrency. We have mentioned the pros and cons of the wallets as well.
You can look at them and choose according to your requirements. If you find the article informative and interesting, do share it with your friends. Also if you have any queries and doubts in your head, feel free to ask us in the comments section below.