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There exists numerous kinds of cryptocurrency wallets to permit users store and access their digital currencies in different ways. The question that is relevant in this context is what lengths are these wallets secure. Before taking up the security aspect, it is helpful to understand the many types or varieties of cryptocurrency wallets which exist today.
Cryptocurrency wallet: Types and varieties
These wallets can broadly be classified in 3 categories:
Hardware wallets and
Cryptocurrency software wallets can again be sub-divided into desktop, online and mobile wallets.
Desktop software wallets: These wallets are meant to be downloaded and installed on desktop PCs and laptops.
Ellipal Titan Review offers the highest degree of security though their accessibility is bound only to the computer in which they are installed. Moreover, in case, if the computer gets hacked or is virus-infected, there is a possibility that one can lose all their money.
Online software wallets: This selection of cryptocurrency wallets operate on the Cloud. Thus, they can easily be accessed from any computing device and from any geographical location. Apart from accessibility convenience, this kind of digital wallets store the private keys online. The keys are even controlled by third-parties; this makes them easily susceptible to hacking and theft.
Mobile software wallets: Unlike both other varieties, mobile software wallets operate on smartphones via an app. These can easily be utilized everywhere, including shops and malls. This selection of the wallets is usually much simpler and smaller when compared to normal desktop ones to support with the limited space on mobile handsets.
Difference between hardware and software wallets
Hardware digital wallets change from the program ones on the aspect of storing a user’s private keys. The hardware wallets store an individual keys in a hardware device (for instance, the USB). Thus, because the keys are stored offline, these wallets offer an added security. Moreover, hardware wallets are often compatible with many online interfaces and can also handle different currencies. This variety of cryptocurrency wallets is also easy to make transactions with. As a user, you merely need to plug in the device to any computer, that is connected to the net before entering a PIN, transfer the currency and just confirm the transaction. Your digital currency is kept offline by the hardware wallets and thus, the risk factor or security concern is also much lesser.
Paper digital wallets: This range of digital wallets can be user-friendly and ensures a high-level of security. The word "paper wallet" just refers to the hardcopy printout of a user’s both public and private keys. However, taking into consideration the instances, it can also make reference to a software application meant to generate the keys securely before printing.