Investing funds in Cryptocurrency can probably leave you with very good returns, but choosing the right kind of Cryptocurrency wallet is very crucial in safeguarding your investment. Since many different solutions exist in the market, you will need to consider many features before choosing one, like simplicity, privacy, long term storage and so on. But this doesn’t mean that you have to settle between simplicity and security for fiat money. Here is some info on Cryptocurrency Wallets types that can help you choose just the right thing that can suit your requirements.
Cryptocurrency wallet is basically a program that helps you store, monitor and send or receive Cryptocurrency. Just like Gmail which facilitates in managing emails, Cryptocurrency wallet helps to manage Bitcoins, altcoins like Ethereum, Ripple and few more. In this, you get the complete control over the security of coins in your account, although it gets a little tricky to install and maintain them, at times.
As the payment processing is conducted via a private network, all the transactions are saved in a public record, known as “blockchain”. This is nothing but a global ledger for cryptocurrency transactions. To be precise, bitcoins or altcoins can’t be stored anywhere, except for the public network and for accessing the coins, users need private keys that are stored in wallets. Some wallets allow you to save the private keys in documents, while others save it on cloud or specific hardware. Cryptocurrency wallet comes in four different forms, desktop, web, mobile and hardware. But the point is, which is the best wallet to choose and how can it affect your investment. Let’s check it out.
Desktop Wallets: As the name suggests, these wallets are installed on the desktop and provide the complete control of the wallet to the user. These days, there are multiple options to choose from; Armory, Multibit, Bitcoin Core, Hive, Dark Wallet, Electrum, Jaxx, Exodus and so on. Out of these, Armory is known to have advanced security level.
Web Wallets: These options allow users to use Bitcoins from any browser or mobile. Basically, web wallets allow you to have a cryptocurrencies that can reside on the cloud. However, in most cases, these are controlled by third party provider, which means they have an access to your Cryptocurrency and the private key. Some web wallet providers are an exception to this, as they provide you access to your private keys. Coinbase, Xapo, Circle, MyEtherWallet, MetaMask and Blockchain, are some of the popular service providers.
Mobile Wallets: These wallets come with an advantage over the desktop wallets, as they allow you to pay directly from the mobile (once the app is installed on the Smartphone) anywhere anytime. Through NFC (Near Field Communication) scanning a QR code, you can easily make a payment in physical stores by using touch-to-pay. Mycelium Bitcoin wallet, Xapo, Blockchain and Hive Android are some of the best options available in the market.
Hardware Wallets: These wallets hold private key electronically to facilitate the payments and because it is still in the development phase, these wallets are very limited. But if you are looking for some trustworthy options, then, Ledger Nano S, KeepKey and Trezor are some reputable names in the market.
All the Cryptocurrency wallets come with their own merits and demerits. While some give you the advantage of using Cryptocurrency on the move, others involve third party association. Considering all the details beforehand will secure your investment and increase the consistency of returns, putting all the odds in your favour.