When the Bitcoin holder wants to have a secured wallet other than the wallet provided by an exchange platform, then storing it in a space outside an exchange platform and moving it to the exchange wallet only when needed would be the best idea. This will ensure that the user’s hold the private keys and records of their transactions and allows the user to keep a track on the Crypto balance in the wallet.
The use of Blockchain technology in the wallet payments, makes it more secured compared to the conventional methods. The Blockchain will enable the users carry out the transaction in a P2P manner. The users will not need the interference of any third parties for the transaction to carry out.
Types of Crypto Wallet
Desktop Wallet
This type of wallet can be downloaded on PC or laptop for the use. But externally when the computer is been hacked this will make the user to lose their funds.
Internet Wallet
Internet wallet service can also be called as online wallet which can be accessed from multiple locations with the help of an Internet connection. The user need to choose the service carefully since this type of wallet is prone to scams.
Mobile Wallet
Mobile wallets involves the use of application in the Mobile. Its much safer and will have easy user interface compared to the other wallets. But if the mobile gets lost or undergoes any damage then the user may lose their fund. One can directly go for Cryptocurrency wallet app with customized features to increase security.
Hardware Wallet
The hardware wallet are gadgets used for the storage purposes such the USB drive. The transactions in these can be carried out in both Online and offline mode. This type of wallet is highly convenient for the users to carry out the transactions. Eg- Trezor wallet
Paper Wallet
Paper wallets involves the physical printed version of Public and Private Keys. It will be printed on a paper or engraved on a metal plate. One of the limitation in this type of wallet is that, once the paper wallet is lost the user won’t be able to restore or access to their funds.
Hot Wallet
The hot wallets are the types which will always be connected to the internet. It is easy for transacting but it is exposed to malware attacks online
Cold Wallet
Unlike hot wallet the cold wallets are not connected to the internet and it includes paper wallets and hardware wallets. Even when offline the cold wallet will receive the funds sent to them.
Warm wallet
The warm wallet is the combination of both the cold wallet and the hot wallet. It includes the security of Cold wallet and the convenient transacting methods of hot wallet. The hardware wallet when disconnected to the internet acts as a cold wallet and when connected, it will act as a hot wallet.
Read more about the prospects of wallet development over here! Check out more features over here!
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