What is a Cryptocurrency Wallet?
“A cryptocurrency wallet is a software program that stores private and public keys and interacts with different blockchains to enable users to send and receive digital currency and monitor their balance”.
Types of Cryptocurrency Wallets
There are several types off cryptocurrency wallets that you can store your coins. There are three type of wallets which are Software, Hardware, and Paper.
Online wallets are the easiest one to use. They run on a cloud and accessible from any computing device in any location with internet. On the other hand, online wallets are not as safe as others. Personally, I see it risky to hold my fund on a online wallet.
Desktop wallets are a popular way to store your coins. It is safer than online wallets. You can download and install it to your PC. However, there is a possibility to lose your funds if your computer gets hacked.
Mobile wallets are phone applications. They are easy to use. We may say that it is safer than online wallets but there are also some risk as losing our phone.
Hardware wallets store your private keys on a device, generally a USB. As they store your coins offline, they are more secure to use. On the other hand, hardware wallets can be expensive.
Paper wallets are the safest one to store your coins. “While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys”. You can send coins by transferring the coin to wallet’s public address and you can withdraw or send your currencies by entering your private keys or by scanning the QR code which you can see on the paper wallet. Alternatively, if you want to withdraw coins, all you need to do is transfer funds from your paper wallet to your software wallets.
There are no best crypto wallet. It depends on your requirements and purpose. Personally, I use “Desktop Wallets” as it is easy and secure.
Here some wallet examples:
Dash: Dash Core.