There are 5 types of crypto wallets:
1. Desktop wallet (software)
This type of wallet you simply download and install on your computer. It’s stored on a hard drive and you can only access it from a computer. It’s a relatively safe method of storage but not bulletproof. If your hard drive gets hacked or damaged, you could lose all your funds.
2. Mobile wallet (software)
This type of wallet runs locally on your smartphone. It’s more convenient than a desktop wallet because you can make transactions on the go.
3. Online wallet (software)
An online wallet is cloud-based. You can access it from any computer with an internet connection. You also save yourself the hassle when switching to a new PC or phone, and don’t have to worry about your device getting damaged. They are mainly offered by online exchanges, which let you buy and sell cryptocurrencies.
4. Hardware wallet (hardware)
This is one of the safest options available. A hardware wallet looks like a USB flash drive and stores your private and public keys offline, making it impossible for someone to hack. However, losing or damaging the device could lead to a loss of the cryptocurrencies you own. Hardware wallets can be expensive.
5. Paper wallet (paper)
A paper wallet is basically your private and public keys printed on a piece of paper, usually as QR codes. It is a form of offline storage. It’s a safe way to store your info, but you Still carry the risk of losing or damaging your paper wallet. You can’t send someone cryptocurrency from your paper wallet. You must first import the funds into a software wallet.
Sven Franssen