Types of Cryptocurrency Wallets: Pros and Cons

In order to become eligible to send and receive cryptocurrencies such as CrypticCoin, Litecoin, Dash, Ethereum, and Bitcoin; users first need to choose cryptocurrency wallet. There are five different types of wallets that can be used with varying levels of safety features, and each one of these has specific pros and cons. If you are a beginner in the world of cryptocurrency; it is important to understand your options and the risks associated with each type of wallet. The following summarizes the pros and cons of the various types of wallets:

Web Wallet

Pros:

  • It offers the fastest way to process transactions without any server lag and apps. 
  • Best choice for working on the small crypto amount.
  • Privacy can be improved with the TOR network.

Cons:

  • Susceptible to malware, scams.
  • Coin information is stored at third-party platforms. 
  • Few web wallets also allow users to manage multiple cryptocurrencies.     

Mobile Wallet

Pros:

  • Practical and simple solution.
  • Many additional features over hardware and online wallets including QR code scanning. 
  • Support TOR network for enhancement in privacy.

Cons:

  • Phones can be destroyed by viruses, keyloggers and malware attacks leading to major risk to your mobile wallet. 

Desktop Wallet

Pros:

  • Easy to the suit, suitable for beginners. 
  • Considered as a best cold storage solution. 
  • Private keys are not stored on any third party server, so the user can ensure higher privacy.
  • Privacy can be increased with TOR.

Cons:

  • If you connect your desktop to the internet, risks to privacy and security of wallet increases. 
  • You need to back up your computer from time to time; if it dies, you may lose your coins.
  • Susceptible to virus and malware attacks. 

Hardware Wallet

Pros:

  • Most secure method to store crypto for the long run.
  • Suitable for those who have large crypto quantity.
  • Easily available at online stores. 

Cons:

  • Cumbersome to use for beginners. 
  • Most of these wallets need batteries.

Paper Wallet

Pros:

  • The most hacker proof and secure wallet for crypto users. 
  • Doesn’t require computer storage. 
  • Private keys are not saved on any third-party server. 

Cons:

  • Difficult to move cryptocurrencies.
  • User must be technically skilled. 
  • Risk of destruction of the paper that contains the wallet info.

 

If you are planning on investing in cryptocurrency, it is important to choose the right wallet to make your transactions possible online. Beginners can start with the web wallet as it can help them to learn the method to make online crypto transfers. Later you can also think of using more safer paper wallets as well.