Choosing the best cryptocurrency wallet for you is very difficult. On one side, you will experience total security, while on the other, you can enjoy convenient storage and transactions.
But many people do not know how each is different from the other. For your convenience, here are some of the most popular types of cryptocurrency wallets.
The most common type is what we call hot wallets. These are cryptocurrency wallets that you can access through the Internet. These are available across cryptocurrency exchanges and hot wallet services and softwares.
For example, if you create an account on a particular crypto exchange, you will automatically have your own cryptocurrency wallet there. When you buy a particular cryptocurrency and don’t transfer it to your own wallet, your crypto asset will be stored on your hot wallet inside the exchange.
There are also other hot crypto wallets that can be downloaded as a mobile app, a desktop software, or even through a particular website. These can be connected to the cryptocurrency’s blockchain online.
And if there are hot wallets, there are also cold wallets. These are cryptocurrency wallets that are not connected to the Internet. Many popular options belonging in this category are hardware wallets. They have their own mechanism which allows them to generate public and private keys, which cannot be accessed by any person other than the ones that the owner has shown them to, willingly or not.
Crypto users who aim for maximum security tend to own cold cryptocurrency wallets because they are virtually unhackable. However, the problem with this is that they are too safe and secure that sometimes, the owner themselves cannot access them if they totally forgot their keys, if they damaged their hardware wallet, or if they have lost it themselves.
Before deciding to get your own cryptocurrency wallet, make sure to practice utmost security and responsibility. Many cryptocurrencies may have better valuation in the future. And if you lose your crypto today, you may feel remorseful and disappointed once they moon.