Cryptocurrency Wallets
Cryptocurrency Wallets - what are they?
The regular wallet you carry is a storage place for your financial tools, as well as a place to keep family pictures, ticket stubs and whatever else may collect there. Most people keep their bank cards, credit cards and regular bill-and-coin currency in their wallets.
The regular wallet you carry is a storage place for your financial tools, as well as a place to keep family pictures, ticket stubs and whatever else may collect there. Most people keep their bank cards, credit cards and regular bill-and-coin currency in their wallets.
Well, cryptocurrency wallets (further called simply wallets) are not all that different.
They are made to store all the information that is pertinent to your digital currency account, and they come in four different types:
Mobile wallets are ideal for investors who like to make purchases on the go.
Due to space limitations that are inherent with mobile devices, these tend to be smaller and simpler programs than software wallets.
Web wallets can come with a trade-off: they're more simple to access, but the online availability of digital currency information can lead to hacking and theft.
These are ideal for traders who intend to invest most of their cryptocurrency, and not use it as much for purchases.
Paper wallets properly stored under lock and key give investors a very high level of security in comparison to their digital cousins.
They are made to store all the information that is pertinent to your digital currency account, and they come in four different types:
- Software Wallets
- Mobile Wallets
Mobile wallets are ideal for investors who like to make purchases on the go.
Due to space limitations that are inherent with mobile devices, these tend to be smaller and simpler programs than software wallets.
- Web Wallets
Web wallets can come with a trade-off: they're more simple to access, but the online availability of digital currency information can lead to hacking and theft.
- Paper Wallets
These are ideal for traders who intend to invest most of their cryptocurrency, and not use it as much for purchases.
Paper wallets properly stored under lock and key give investors a very high level of security in comparison to their digital cousins.
There are also what are known as “hybrid” wallets, which combine the local storage capabilities of software wallets with the universal accessibility of web wallets.
It is important to know that, usually, a wallet can be used only for one type of cryptocurrency. Thus, if you need to do transactions with BTC, you will need to have a BTC wallet; if you need to do transactions with LTC or DOGE, you will need to have a LTC or DOGE wallet.
The reason for this situation is the fact that each wallet contains one or more addresses for the cryptocurrency for which it is used. These addresses make possible the transactions in the currency for which they are defined.
Of course, there are multi-currency wallets, but these wallets are still in the process of improving their functionality and security. That is why, we recommend to use different wallets for different cryptocurrencies and to avoid using multi-currency wallets.
It is important to know that, usually, a wallet can be used only for one type of cryptocurrency. Thus, if you need to do transactions with BTC, you will need to have a BTC wallet; if you need to do transactions with LTC or DOGE, you will need to have a LTC or DOGE wallet.
The reason for this situation is the fact that each wallet contains one or more addresses for the cryptocurrency for which it is used. These addresses make possible the transactions in the currency for which they are defined.
Of course, there are multi-currency wallets, but these wallets are still in the process of improving their functionality and security. That is why, we recommend to use different wallets for different cryptocurrencies and to avoid using multi-currency wallets.