Payments and transactions have become ingrained in our day-to-day activities. In every sector of the economy, a significant amount of funds are processed by payment and transaction platforms all over the world. As we advance, these transactions continue to increase in volume. Hence the need for an efficient, fast, and secure platform to carry out such transactions.
A lot of solutions, especially by financial technology (fintec) startups, have been rolled out to improve the ease of transactions and payments. However, none of these solutions beat those that leverage on the decentralized approach of the blockchain.
A cryptocurrency wallet is a device or a program that can be used to receive or send cryptocurrencies. Just like your bank account, a cryptocurrency wallet is a placeholder for your cryptoassets. It's from there you pay for goods and services.
Basically, cryptocurrency wallets are multifunctional, with layers of sophistication for security. On functions, they have the capacity to store, send, and receive cryptocurrencies or tokens.
There are different types of crypto wallets, and in this post, I'll show you which one is the best for you and why. Stay with me.
Types of crypto wallets
Hardware wallets
Hardware crypto wallets are physical devices resembling a flash drive that is specifically built to hold some amount of cryptos. They were a very common means to store Bitcoins in the early stages of cryptocurrency emergence.
In general, hardware wallets are very reliable and safe. They keep your private key safe and away from the prying eyes of internet fraudsters.
Furnished with layers of encryption, crypto assets are safe in such wallets, but there are a couple of disadvantages which I have highlighted below:
- Trust issues: You need to trust the manufacturer to actually keep your cryptos safe. This entails going through their documentation and codebase. It's almost impossible to find this if the project is not open source.
- Cost: Hardware wallets actually go for a cost that is quite on a high side. They don't come for free like other types of wallets we'll soon discuss.
- No backup: What happens when you stash thousands of crypto tokens in a hardware wallet and suddenly misplace it? Hardware wallets don't have backups anywhere. Once you lose your device, you lose your funds as well, except you note a long seed phrase provided by the manufacturers.
Paper wallets
If you own a paper wallet, you'll enjoy an ultra-hackerproof feature as your cryptocurrencies are not stored online or by third-party software.Paper wallets are perhaps the most secured types of wallets for your cryptos, but they are not engineered for fast, efficient transactions.To use one, you need to write down your private and public keys because no transaction (sending and receiving) will be possible without them.
Desktop wallets
These are versions of crypto wallets that can be installed on your computer. They can offer quality security when they remain cold –not connected to the internet. Desktop wallets are cool to use for crypto traders.
Some key disadvantages include:
- Hard drive failure: If your computer crashes and you don't have a backup, you can lose all your cryptos.
- Internet connectivity: Once a computer has been connected to the internet, the security of your cryptos decreases significantly.
Online wallets
These are web-based application software typically used for handling a small amount of cryptos. They are feasible and fairly easy to use, just like every other internet-based innovation.
In general, online wallets have such disadvantages as:
- Risk of internet security: A lot of hackers are constantly siphoning data from devices connected to the internet. There's no telling which computer is targeted with a hack or which person is about to be scammed. In fact, the significant rate of these hacks have led to the shutdown of some crypto exchange platforms –that's how bad it can get.
- Third-party storage: Third-party software mostly facilitates online wallets, so here comes the issue of trust.
Despite these disadvantages, many online wallets have proven to be reliable over the years. They have incorporated security features to keep your assets safe.
Why choose XCARD?
XCARD (http://xcard.io/index.html#topfeatures) is a digital banking alternative for crypto and fiat currencies, providing a multipurpose digital wallet, cryptocurrency credit card, and a payment system. With XCARD, you can perform any financial and cryptocurrency transactions feasibly and in real-time.
What does this mean?
With XCARD, you get a secured wallet available online and on mobile app stores. Additionally, you get a platform to Kickstart trading with cryptos and a credit card with which you can spend your cryptocurrencies on just anything you want or make withdrawals to fiat currencies.
XCARDimplements a spend-everywhere ideology where you can leverage the platform to make transactions with cryptos or fiat currencies, and the merchants can choose how they receive the payment as well –a win-win for everyone.