A digital wallet is nothing but an electronic device that makes it possible for users to transfer money online. It exists for a while on the market, but as the cryptocurrencies started to rise and grow, they became an essential part of the whole mining, trading, and exchanging process. Nowadays, a lot of people are using it, and many consumers utilize a wallet to buy something online. There are different kinds of digital wallets, and before you start figuring out how to convert GRS to BTC or any other pair, you should decide which type you are going to use. You can check on letsexchange.io so you can see how it’s done.
A Bitcoin wallet, for instance, is similar to an ordinary bank account because there are many common features. With the help of this service, consumers are able to receive coins, store them, and send them to other people. The great part is that they are secure, but it comes in two types only – web wallet and software wallet.
You can install a software wallet on your personal computer or mobile device. There is full control over the coins` security, but some consumers face difficulties when it comes to installing and maintaining it. At the same time, there is always a third party to handle a web wallet. It is not hard to utilize it, while the level of security is high. On the other hand, you may not trust service providers who are to guarantee the security of coins.
There are some basic rules you need to follow in order to protect your crypto belongings, as setting up a password, PIN code, and key code you won’t share with anyone. It’s also important to choose the right type of wallet you will use to store your Bitcoins until you estimate is the right time to trade them.
So, let’s see some of the options you have:
What Other Types of Wallets Are There?
People who want to know how to choose a crypto wallet must know that there are more types of digital wallets apart from the ones mentioned above. Here they are:
1. Hot wallet vs. cold wallet.
All the available wallets are subdivided into hot and cold. The first type is connected to the internet, while the second one happens to be an offline wallet. A cold wallet is regarded as the more secure option, so people tend to use it more often. One good example is eToro which a multi-regulated brokerage firm that also offers a secured crypto wallet. We recommend that you read more about it before you open an account with this brand.
A hot wallet is usually utilized if they want to access the money instantly. To sum it up, they believe that a hot wallet is more suitable for regular use, and a cold wallet is better for long-term use. Also, connecting your wallet to a device that has internet access, makes it more vulnerable and prone to cyber-attacks. But, for a one-time transaction, there is no better choice than that. On the other hand, if you plan to build a crypto carrier, you will have to stick to the cold wallets, and even use more of them, to split the savings and keep them safe with you.
2. Desktop wallet.
Consumers can install it on their laptops or personal computers. It is not hard to access it and utilize it even if there is no connection to the internet. It works just like every other desktop application, and by accessing it, you have control over your crypto finances. Keep in mind that it’s probably not the most secure way, and you need to control what’s happening all the time.
3. Mobile wallets.
Frequent mobile users who do not have time to use their laptops or PC are able to install bitcoin wallets on their smartphones. It is possible to access a few of them online for both iPhone and Android users. The most important feature of such wallets is the QR code capability, which makes them more secure. As you suppose, this is one of the most favorite ways to use a crypto wallet. We all love our smartphones and take them everywhere with us. That means you can have your money close to you, but also get the right moments to exchange something, or even to trade while you on a lunch break.
4. Paper wallets.
This type is more secure in comparison with other online and software options. It is not difficult to store a private or public key on paper. They regard it as a more secure variant because users have their keys printed on a sheet of paper. Besides, they happen to be the offline or cold storage method. At the same time, sometimes it is hard to manage a paper wallet because it can be damaged or torn. That is why you should make several copies of the key instead of having one. Always remember where your copies are too.
5. Hardware wallets.
This type of wallet is very different from those mentioned above. They are USB-type devices that users are to attach to their laptop or computer for performing any transaction. Such a wallet is highly secure, as all the keys are stored offline. Moreover, all the keys are generated offline; consequently, they are protected from hackers and malware. Another great part is that it is not hard to use a hardware wallet because it is not necessary to understand the complex mechanism of Bitcoin or blockchain to utilize it. Therefore, it is one of the most secure and user-friendly wallet options available.
The next thing you will have to do is to track down all the options you have and find the right one for your needs. If you choose a standalone app, you will have to download it on your device, so you can easily access it. Also, you have to stick to trustworthy and reliable wallets, because storing a lot of Bitcoins in them is also a huge risk. But, taking everything it needs to keep them safe should be your priority too. Always listen to the advice an experienced person is giving to you. Most of them will recommend using a physical device as a wallet, to store your Bitcoins on it.
Keep in mind that the hackers simply love the BTCs, and they will do everything they can to access some wallet that is left outside alone, with no signs of someone paying attention to it. That’s why you must behave very carefully with it because you don’t know when you will have to use it. Nothing comes risk-free when we use cryptocurrencies. The whole market is risky, including the specific wallets, and what’s saved on them.
But, now you know enough about the different types and the way you can store your coins on them, doing everything you can to protect what’s yours.