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I understand to a few in the widening crypto ecosystem global-wide, this topic means much like broaching on their crypto experiences garnered as they know more or more than enough about it all already. But, to help make others, who probably do not have much or enough understanding of it is why I have decided to take a time-out to research and write on it.
Cryptocurrency wallet: kinds and varieties
These specific wallets can broadly be classified into 3 dichotomies:
Software wallets
Hardware wallets
Paper wallets
Software Wallets: they too can be further divided into desktop, online and mobile wallets.
Desktop Wallets: These wallets are downloaded and installed on the usuals, desktop PCs and laptops. This peculiar variety offers the realest level of security, though their accessibility is technically limited only to the computer in which the softwares are installed. More so, in case of any necessity, it should be noted that if the computer gets hacked or gets virus-infected, there's plausibility that one may lose all of one's money invested/stored.
Online Wallets: This ones run on the Cloud ☁ -- simply where 'currency data' are stored electronically other than having it on hardware or 'paperwear'. Hence, they can easily be accessed from any computing device connected from any geographical location worldwide. In addition, this kind of digital wallets store the private keys online as against offline. But the keys are even controlled by third-parties and this makes them quite vulnerable to hacking and any other form of cyber thefts one could imagine.
Mobile Wallets: Unlike the two other varieties stated above, these varieties run on smartphones through an application (app). These can easily be used everywhere (due to the portability of mobile devices), not excluding retail stores and malls. Due to its portability and utility's precision as packaged as handset; it makes these varieties to be usually much simpler and smaller compared to the normal desktops to accommodate within the spaces we have where we live. In other words, we both understand desktops are practically meant to be immobile.
The Differences Twixt Hardware and Software Wallets
Hardware digital wallets is quite different from the software ones owing to how to store a user's private keys. The hardware wallets store the user keys in a hardware device such as the USB. Therefore, as the keys are stored offline, they offer a more assured security. In furtherance, hardware wallets are so compatible with many online interfaces and can also easily handle different cryptocurrencies in their several hundreds yet. This variety of cryptocurrency wallets is also easy for making transactions. For instance, a user would just need to plug in the device to any working computer, input the PIN, transfer the currency and finally confirm the transaction. The user's digital currency is kept offline by the hardware wallets and so, the major feasible risks become lessened.
Paper digital wallets: This range of wallets are also user-friendly and ascertain a high-level of security; (personally, I believe it is not quite popular as the other two but I might be wrong though). The term paper wallet just implies the hardcopy printout of a user's both (of) public and private keys. Nonetheless, weighing the instances, it could as well imply a software application meant to generate the keys securely before printing. It is necessary to note using paper wallets is relatively somewhat easier. To use to transfer cryptocurrencies, just transfer the funds from the software wallet directly to the public address your paper wallet displays. Similar to that, when you want to expend or withdraw your currency, just transfer the funds from the paper wallet to your software wallet. It is learnt that this procedure is referred to as 'sweeping'. Sweeping can be carried out either manually, by entering the private keys or scanning the QR code on a paper wallet.
How Secured Cryptocurrency Wallets are Right?
There are tons of digital wallets of different brands out there today offering different levels of security as you might know. But in all, the security aspect depends basically on these:
(The kind of wallet you use is within) hardware, paper, online, desktop and/ or mobile.
I do not want to suggest a specific brand by mentioning names, but I guess it is much safer to keep the currencies offline, as compared to online (I though know you might have a subjective reason to say that is wrong). This is because it is impossible to totally ignore the security measures, irrespective of the wallet one has chosen -- anything can happen technically at anytime and a million dollar worth of cryptocurrencies stored there could just... poof into naught.
If there is anything you know I have left out about digital wallets which might be helpful for any reader, please try and share -- "there is love in sharing," they say. Thank you.
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