In order to become eligible to send and receive cryptocurrencies such as 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 better to collect a few details about these wallets by reading the details below:
- Web Wallet:
- It offers the fastest way to process transactions without any lag of servers and apps.
- Best choice for working on the small crypto amount.
- Few web wallets also allow users to manage multiple cryptocurrencies.
- Privacy can be improved with the TOR
- Susceptible to malware, scams.
- Coin information is stored at third-party platforms.
- Mobile Wallet:
- Practical and simple solution.
- Many additional features over hardware and online wallets including QR code scanning.
- Support TOR network for enhancement in privacy.
- Phones can be destroyed by viruses, keyloggers and malware attacks leading to major risk to your mobile wallet.
- Desktop Wallet:
- 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.
- 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 a huge amount.
- Susceptible to virus and malware attacks.
- Hardware Wallet:
- Most secure method to store crypto for the long
- Suitable for those who have large crypto quantity.
- Easily available at online stores.
- Cumbersome to use for beginners.
- Most of these wallets need batteries.
- Paper Wallet:
- 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.
- Difficult to move cryptocurrencies.
- User must be technically skilled.
If you are planning to use invest in cryptocurrency, it is first 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.