Compare Listings

All About Crypto Currency Wallets: Types, Pros and Cons

All About Crypto Currency Wallets: Types, Pros and Cons

Crypto currency is not an alien concept to the world today. From retail to real estate, they are being accepted as a fair mode of payment and transactions. This means that from a buying a pizza to buying real estate with crypto currency, it is all just a click away. Therefore today, this blog will put light on an essential component of the Crypto world, i.e., Crypto currency wallets.

Just like regular wallets used for regular money, digital currency also use different types of wallets for its varied currencies. Let us first define Crypto currency wallets:

Since Crypto currency is nothing but electronic data and exist in a digital form, they are managed through a combination of private and public keys. Your tokens in specific are represented by private keys. These crypto currency wallets are important because in case of lost or theft of your keys, you will lose the access to your crypto currency funds. Therefore, the digital realm realizes this and has come forward with some different types of wallets which in turn, have their own pros and cons.

Crypto currency Wallets, Types, Pros and Cons

All-About-Crypto-Currency-Wallets-Types,-Pros-and-Cons-1

1- Hardware Wallets

As the word suggests, this particular is in physical solid form. Resembling a typical USB device, these hardware wallets store crypto keys (private/public) offline. Following are the pros and cons of hardware wallets:

Pros of hardware wallets:

  • As these wallets offer offline storage, they are resilient to hacking. These wallets offer most secure ways of storing private keys of your crypto currency.
  • They come with the option of backup and recovery if the device is lost or misplaced.
  • They provide PIN passwords for more safety and security so that the funds/tokens cannot be used in case of device theft.

 Cons of Hardware Wallets:

  • Since hardware wallets are physical in nature, they are costly than the other digital wallets of crypto currencies.
  • Just like a USB, they come with limited access options as they do not work until they are attached with desktop/laptop to use keys and perform transactions. They can also be connected with Bluetooth through a smartphone application.

2- Desktop Wallets

Desktop or laptop wallets are the first ever wallets in here which are actually digital in nature. These wallets are installed as a software program on your system. They support a variety of operating systems including Windows and Mac. In this case, crypto currency tokens and assests are stored on your hard drive and not online.

Pros of Desktop wallets:

  • As they are software program in actual, they come with ease and convenience of usage.
  • Improved accessibility to crypto currencies and security.

Cons of Desktop Wallets:

  • The biggest con of desktop wallet is that in case of loss of your hard drive, you will lose access to all your crypto currency assets if you have not got a backup. Therefore, always keep a backup of your bit coins or any other crypto currency.
  • Prone to malware and virus.
  • Software needs continuous updating. Therefore, always keep your desktop equipped with the latest antivirus software so that your computer is not infected with malware.

Some of the best desktop wallets for crypto currency in the market are Exodus and Electrum.

3- Web Wallets

As the name suggest, web wallets involve a third-party service provider that stores your crypto currency on its platform. This means that your private keys and the assets are stored in the never-ending expanse of the Internet. Some analysts state that web wallets do not provide enough security in this regard but their convenience, ease and the option to access them from anywhere in the world covers the previous point. Web wallets’ potential pros and cons are as follows:

Pros of Web Wallets:

  • Option to store multiple crypto currencies
  • Most web wallets come equipped with security protocols like 2FA so the safety is guaranteed to some point.
  • Perform all crypto functions seamlessly: from making property transactions to buying your favorite outfit, it is easier and hassle-free now.

Cons of Web Wallets:

  • Since third party service providers manage the operations here, the storage of private keys in this case is considered less secure and safe.
  • Less or not resilient to hacks. Therefore analyst’s advice to store small amount of crypto currencies in web wallets and keep a backup of the larger funds in another wallet. The most famous among web wallets is Coin base.

4- Mobile Wallets

As it is clear from the name, these wallets are installed in your mobile phones. Today, mobile wallets stand most popular among all the crypto currency wallets because of their portability and easier access. But these wallets are also connected to the internet like web wallets and therefore, they stand prone to virus and hacks. The potential pros and cons of Mobile wallets are as follows:

Pros of Mobile Wallet:

  • Easier and greater access to your crypto currencies. Every payment stands a “tap-away”
  • It is a known fact that mobile and desktop versions differ a lot. A mobile version of any software or application is smarter, easier and super interactive. Therefore, this very feature allows easier trading of crypto currencies.
  • Gain access to QR codes

Cons of Mobile Wallets

  • Again like web wallets, mobile wallets also provide less security in terms of protection of your crypto assets.
  • In case of loss or theft of your mobile, your crypto assets come at risk of being stolen also. Therefore, crypto-analysts strongly advise to store a less amount of crypto currency on mobile wallets and the larger sums on desktop wallet or hardware wallet.

The most famous of mobile wallets are Edge and MyCelium.

5- Paper Wallets

By definition, a paper wallet is a printed piece of paper that contains keys and QR codes that are used to facilitate crypto currency payments and transactions. Mostly, this methodology was popular among 2011-2016 and its footprint has been fading ever since. To perform a crypto currency transaction, you have to enter your private keys from the piece of paper because these keys are stored on paper.

Pros of Paper Wallets:

  • Due to its offline storage, I is less prone to virus and malware.

Cons of Paper Wallet:

  • It is obsolete and outdated along with posing difficulty in routinely trading.
  • Loss of paper will mean loss of your crypto currency.
  • Less convenient.

Conclusion

This blog ends at a conclusion of selecting a wallet in accordance with your needs. Whatever your current needs are, your crypto wallet should resemble that. If you learn to make a perfect blend of your priorities and the wallets’ services, you will become a pro at using crypto currency.

If you still have questions about how crypto currency can be used to buy a thing as grand as a real estate then head over to cryptoforrealty.com. Here, our expert team professionals will guide with their knowledge and years of experience so that you can easily buy real estate with crypto currency and diversify your investment portfolio.

 

 

Related posts

What is NFT’s and Crypto Art – The Future of Real Estate Dubai

Two days ago we heard the news of the digital art getting sold for $6.6 million dollars and getting...

Continue reading
by admin

Top 9 Easiest Coins to Mine in Crypto’s World

Crypto currency mining is not an easy task to do and if there is a chance of easing out the process...

Continue reading
by admin

7 Powerful Tips How to ensure and enhance safety of your cryptocurrency wallets in 2021

As we all know that crypto currency has become a vital part of our routinely matters and just like...

Continue reading
by admin

Join The Discussion